GPS, a Brazilian company of the Julius Baer Group, has signed a partnership agreement with the leading local digital financial advisor Magnetis, in which it will acquire a minority stake.
Zurich/São Paulo, 2 May 2019 –GPS Investimentos Financeiros e Participações S.A. (‘GPS’), a fully owned subsidiary of the Julius Baer Group, announced today that it has signed a partnership agreement with Magnetis Gestora de Recursos Ltd. (‘Magnetis’), a leading digital financial advisor in Brazil. Over the course of two years, GPS will acquire a minority stake in Magnetis, which manages BRL 250 million in AuM, for an undisclosed amount.
This partnership agreement underlines Julius Baer’s clear strategic commitment to smart and focused market coverage. The partnership will allow Julius Baer to capitalise on the growing market of upcoming younger tech-conscious investors in one of its core markets.
With its current Brazilian presence – through the fully-owned subsidiaries GPS with BRL 31 billion (CHF 8 billion) in AuM, and Reliance Group with BRL 20 billion (CHF 5 billion) in AuM – Julius Baer is the largest local independent wealth manager.
Magnetis, founded in 2012 and located in São Paulo, is a fully-registered CVM (Brazilian Securities and Exchange Commission) investment manager. It offers a scalable platform for investment advice and automated portfolio management solutions through a digital interface, appealing to the growing market of upcoming younger investors.
Beatriz Sanchez, Head Latin America and Member of the Executive Board, Bank Julius Baer & Co. Ltd., said: “We see a large underserved demand in Brazil for digital investment services that appeal to the rising market of younger wealth. With our investment in Magnetis, we will be able to capitalise on this growing segment and collaborate with one of the pioneers in this field. In particular, it underscores Julius Baer’s commitment to Brazil and to future client generations and its willingness to invest in the evolution of wealth management.”
Luciano Tavares, Magnetis’ founder and CEO, said: “Magnetis was founded based on the same core values as GPS: providing independent, client-focused investment advice, exempt of conflict of interest. Magnetis has specialised in applying state-of-the-art technology to deliver high-quality investment management to individuals. Now we join forces with GPS’ proven investment expertise to jointly create the best digital experience for investors of all profiles.”
Magnetis is the leading Digital Investment Advisor in Brazil, with BRL 250 million AuM and customers in all Brazilian states.
Founded in 2012, Magnetis helps Brazilian investors to achieve their lifetime goals through unbiased financial planning and smarter investments. Magnetis offers a one-stop digital solution for individuals to build long-term investment plans. Using sophisticated financial algorithms, Magnetis manages diversified, low-cost portfolios optimized for each investor profile.