Alexandre Rangel: Institutional Investors' Engagement in Latin America.

Feb 12, 2024

Former Commissioner of the Brazilian Securities and Exchange Commission, Alexandre Rangel, discusses institutional investors' engagement in Latin America. Topics include local institutional investors and pension funds engagement in Brazil, stewardship codes, challenges of shareholder activism, enforcement and cooperation between U.S. and Brazilian regulators, governance of State-Owned Enterprises, geopolitical landscape, fintech developments in Brazil, and the future of corporate governance in Brazil.

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Introduction

00:00 • 2min

Attending an OECD Roundtable During a Political Coup

01:58 • 2min

Guest's Background and Journey to Becoming a Commissioner at CVM

03:30 • 2min

The Rise of Institutional Investors in Latin America

06:00 • 24min

The Evolution of the Purpose of Corporations

29:31 • 14min

Love for Samba and Percussion and the Power Structure Between Rio and Sao Paulo

43:41 • 2min

Admiration for a Wife's Important Work and Casual Conversation about Rio

45:25 • 2min

(0:00) Intro.

(1:10) About the podcast sponsor: The American College of Governance Counsel.

(1:57) Start of interview.

(4:00) Alexandre's "origin story." His time as Commissioner of the Brazilian Securities and Exchange Commission (CVM) (2020-2023).

(7:34) On his OECD background note on Institutional Investors' Engagement in Latin America (2023).

(14:56) Local institutional investors and pension funds engagement in Brazil. *reference to E118 with John Coates: The Problem of Twelve, Index Funds and Private Equity.

(17:23) On stewardship codes.

(19:58) On internal stewardship teams at asset managers and passive investors.

(21:05) Challenges of shareholder activism and dispersed ownership in Brazil.

(25:53) Enforcement and Cooperation between U.S. and Brazilian regulators. *Reference Enhanced Memorandum of IOSCO.

(28:03) On the governance of State-Owned Enterprises (SOEs).

(34:24) The geopolitical landscape and where Brazil stands vis-a-vis China and the U.S.

(36:38) Fintech developments in Brazil. *Reference to Pix from Brazilian Central Bank (Open Finance Project).

(39:19) The future of corporate governance in Brazil, and prospects to join the OECD. Private right of action for enforcement?

(41:29) Book that has greatly influenced his life:

The Economic Structure of Corporate Law by Frank H. Easterbrook and Daniel R. Fischel (1991)

(42:08) His mentor: his father.

(42:47) Quotes that he thinks of often or lives her life by: "No need to hurry but do not waste time" by Jose Saramago. "I'm neither an optimist nor a pessimist, I prefer to be a hopeful realist." (Ariano Suassuna)

(43:44) An unusual habit or absurd thing that he loves.

(45:34) The living person he most admires.

Alexandre Rangel is a former Commissioner of the Brazilian Securities and Exchange Commission (CVM) (2020-2023) and Consultant of the OECD (2023). He’s currently practicing law at Rangel Advogados.

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