Yet the conversation is friendly, moving easily between English and Spanish. Though each is bursting to tell his story, the two are quite content to patiently hear what the other has to say, since they are actually selling the same thing: Dow Jones LATixx IndexesSM.
"We are so excited about Dow Jones LATixx," says Gregorio, the Managing Director of LVA, the Chilean-based Latin American index company. "We have brought together the strongest names, not just in the industry, but in our region as well, to create a whole new level of product. Our clients have been asking for superior fixed-income indexes for some time. By allying ourselves with our new friends from Mexico and the U.S., we have done just that."
The "friends" he is referring to are Proveedor Integral de Precios (PiP), Mexico's leading price provider and index company, with offices in various parts of the region; and Dow Jones Indexes, one of the world's leading index companies, with more than a century of experience. This new venture—the Dow Jones LATixx IndexSM family—is essentially the index version of Coca-Cola, Pepsi and Red Bull coming together to make a new soft drink.
"When the idea was broached to make fixed-income indexes specifically for our region, it was like a light went off over our heads," jokes Manuel, International Director for PiP. "We started with Mexico and Chile since these are the strongest markets in the region. There are such a large number of bonds—really attractive issues—that we follow with these indexes. The Dow Jones LATixx IndexesSM track corporate bonds, government bonds—all types. ETFs linked to Dow Jones LATixx IndexesSM were launched almost immediately. It is a very strong market and demand drove their creation."
Each of the three groups brings its own unique (and shared) strengths to the venture:
The fact that these groups were able to come together and create Dow Jones LATixxSM Indexes in a very short amount of time is testament to their expertise and resources. Within months, the group populated an entire family of indexes designed to appeal to a wide range of clients.
"We were expecting these indexes to be popular with our local clients since this is what they were asking for," explains Manuel. "But we were also pleasantly surprised at a series of inquiries from around the world. Dow Jones's global reach allowed us to tap a new clientele—institutions and retail investors in the U.S., Europe, Asia. They are learning what our customers in Latin America have known for a long time: There are great bonds in our region, and Dow Jones LATixx IndexesSM can help you follow them with confidence."
LVA's Gregorio agrees, having had the same reaction. His offices have fielded inquiries from outside their "traditional" client base as well.
"I think that this brings us to a whole new level. It lets our most sophisticated investors have access to a truly diversified portfolio of indexes. We can tell a money manager in Buenos Aires or a pension fund in Chicago or a family office in Taipei that the Dow Jones LATixx Mexico Government CETES IndexSM or the Dow Jones LATixx Chile Fixed Income IndexSM will give them indexes measuring bonds with the rates they are looking for; the maturities they are looking for; and cover an area they might have neglected. This is exactly what they need," Gregorio says.
The three partners have a lot of plans for the expansion of Dow Jones LATixx IndexesSM—both geographically and in the number and types of issues. In the short-term, they will cover more and more segments of the Mexican and Chilean fixed-income markets. Both countries have well-earned reputations for openness and transparency in their markets that attract investment the world over.
And new opportunities arise all the time.
In addition to the obvious Mexican and Chilean peso-based products, there are Euro- and U.S. dollar-based bonds in the indexes. Also, the Dow Jones LATixx IndexesSM feature different series of bank bonds, asset-backed securities and infrastructure bonds in both countries.
There is a longer-term strategy of expanding into neighboring countries. First up: the open and vibrant fixed-income markets of Brazil, Colombia, Costa Rica and Peru. All have well-earned reputations for free and striving, upwardly mobile economies.
And it does not hurt that both nations are close to Mexico or Chile; or that they host offices of either LVA or PiP (or both).
"Moving into Costa Rica and Peru represents the first round of natural growth for the Dow Jones LATixx IndexesSM, a family expected to eventually grow into hundreds of indexes in dozens of categories," says Gregorio.
"We are watching for attractive bond issues that can be indexed in places like Central America and the Caribbean as well as the remaining South American nations," adds Manuel. "Imagine, the fixed-income market for Brazil alone is valued at over $700 billion."
When the first Dow Jones LATixx IndexesSM rolled out in July, there were multiple mentions of them in the financial (and nonfinancial) media in countries across Latin America as well as in countries from Russia to Australia.
Coverage tended to focus on the fact that erstwhile competitors LVA, PiP and Dow Jones Indexes launched these innovative indexes during a time of market uncertainty. Much was made of their positive reception in the markets.
To further promote the indexes, the partner firms created a short video on the family, which now appears on the companies' Web sites, as well as on YouTube.
"Forget about all our sales success, rolling out these terrific LATixx indexes," laughs Manuel, recounting how he played the video for his kids on the famous video-sharing site. "Now, suddenly, they see that daddy's company is up on YouTube and I am a 'star' with my children."