Colombian pension AFP Skandia has named Juan Daniel Frias as its new chief investment officer, replacing Maria Claudia Correa, who left at the end of January, according to a source familiar with the situation.
Correa joined Skandia in 1996 and later served as chief financial officer. She was appointed chief investment officer in 2010, according to documents from investment forum host Latin Markets. She also worked at the Central Bank and Colombian Treasury. Correa has moved to a role at a private equity firm, according to the source.
Frias has been a senior portfolio manager at Skandia since roughly 2006. He previously taught courses on the derivatives market for the masters in finance programme at the University of Andes in Bogotá. As investment manager Frias will help Skandia's clients achieve “a piece of mind about their financial objectives”, according to the source. Frias declined to comment.
Skandia is one of Colombia’s four largest public pensions, which began investing in private equity in 2005. Colombian pensions are allowed to allocate 5 percent of their funds to international fund managers and 5 percent to local fund managers with more than $1 billion under management. The other large local pensions are Proteccion, Porvenir and Colfondos.
Skandia has considered investing with fund managers such as Kohlberg Kravis Roberts and secondaries investors Neuberger Berman and Lexington Partners.
Some Colombian pensions are halting further private equity commitments until they have a better understanding of the private equity market, which hasn’t undergone an entire investment cycle in Colombia yet, Correa told Private Equity International last November.
Skandia has $3.5 billion of assets as of October 2013, according to PEI’s Research and Analytics division. Colombian pensions are expected to grow their assets steadily to a total of about $550 million by the end of this year, according to 2011 predictions by asset management research firm Cerulli Associates.