State Street Corp., the Boston-based securities processing and asset management bank, has entered the Chilean market.
The bank said that State Street Global Advisors, its fast growing asset management unit, will advise Provida, one of the largest Chilean pension fund managers, on investments in emerging markets. The investments will be channeled through State Street's SSGA emerging markets fund.
State Street said it expected to receive approval later this year from Chilean authorities that would allow it to offer its entire range of mutual funds to Chilean pension managers.
Chile was one of the first Latin American countries to privatize its social security retirement system, allowing local and foreign banks to set up pension fund management companies. Until 1995, Chile prohibited local pension fund managers from investing outside the country.
Under a recent ruling, however, fund managers can invest up to 9% of their assets outside the country.
State Street has $3 trillion of assets under custody and more than $300 billion under management. Including Chile, the bank operates in 16 countries outside the United States.