Fidelity Investments, in an effort to expand its institutional business in Latin America, will open three offices there.
The offices-in Buenos Aires; San Paulo, Brazil; and Santiago, Chile-will let Fidelity explore opportunities while improving its response to new and existing institutional clients.
"Before, we were servicing the region from the U.S. This way, we'll be working with some institutions down there and establishing local contact," said spokesman Andy Trincia.
In the three countries, Fidelity will market investment management solutions or serve as adviser to major banks, pension fund administrators, and insurance companies.
Those countries offer "enormous potential," John J. Mulherin, chief operating officer at Fidelity Investments Institutional Services Co., said in a release. "This is the beginning of our expansion in the region," he added.
One existing client is the Chilean pension system, which is a substantial investor in Fidelity's Luxembourg mutual fund, Mr. Trincia said.
Elsewhere worldwide, Fidelity has an institutional presence in Canada, Europe, and the Pacific Rim, including Japan and Hong Kong.
Fidelity Investments Institutional Services supplies third-party investment products and related services through 950 banks and 32 insurance companies globally. Through April 30, it managed $107.2 billion of assets.
Overall through April 30, the parent, Fidelity Investments, had $511.4 billion of assets under management.
For now, Fidelity has no plan to build a retail business in South America.
"Right now, it's just institutional, but potentially it could be more," said Mr. Trincia.