Under the terms of the agreement, the Canadian lender and SURA Asset Management will jointly administer the company through a transition period.
Grupo SURA’s subsidiary purchased the other 50% of AFP Horizonte.
Following receipt of regulatory approvals, the acquired business will be bifurcated between both companies and Scotiabank will combine its 50% share of this business with its existing pension fund management business, Profuturo AFP in Peru.
Scotiabank global wealth management executive vice president Barb Mason said the acquisition offers strategic importance for global wealth management’s international operations, which will provide future organic growth in Latin America.
"This acquisition will allow us to quickly increase the scale of our existing Profuturo AFP business and become a bigger presence in this growing segment," Mason added.
AFP Horizonte, which manages $9bn in assets under management (AUM), is the third largest pension fund manager in Peru and serves 1.4 million clients through 17 branch locations across the country.
Acquired in 2008 by Scotiabank, Profuturo AFP owns 15% market share in Peru and presently has $5.8bn in AUM and serves 1.2 million customers through 14 branches in the country.
Following integration of both businesses, Profuturo AFP’s AUM will increase to nearly $10.3bn bringing its market share to 27% while serving 1.9 million customers.
Entered in 1997 in Peru, Scotiabank has a work force of nearly 11,000 staff, 284 offices and 600 ABMs as well as serves more than 930,000 retail, corporate and commercial, and institutional customers.
