Tracking the Activities of Global Asset Managers in Latin America
“We are pleased to announce this relationship with AZ Quest, as we continue to expand our capabilities across the region, furthering our goal of supporting leading institutional clients throughout Latin America,” said Marcia Rothschild, State Street head of Latin America.
As domestic real interest rates continue to decline, the propensity for institutional investors to take risks is expected to increase, and part of that is likely to migrate to international investments, said Luiz Fernando Pedrinha, Commercial Director for Institutional Clients at Schroders Brazil.
The great benefit of this strategy is to make Funcef's portfolio more balanced in order to achieve the best possible profitability without increasing the level of risk taken, said Alenir Romanello, Director of Investments and Participations,
Fixed income strategies attracted greater attention from institutional investors. Regulatory changes in the taxation of funds can boost greater demand from high-net wealth clients in allocating their resources internationally, said Fernando Cavallete, portfolio specialist at Itaú Asset.
Brazil is one of the largest fund markets in the world and is currently growing in scale. CVM 175 presents an opportunity for Brazilian investors to further diversify their investments, and this connectivity allows JP Morgan Asset Management in Brazil to prepare for the future," said William Brennan, Director of New Markets at Calastone.
The Balanced-Mixed/Foreign Investment had the largest net selling of BRL 4.7 billion in October, followed by the Balanced-Mixed/Macro, with BRL 4.5 billion in outflows.
The Balanced-Mixed class led losses, with outflows of nearly BRL 11.9 billion in the month.
Fixed-Income Short Duration/Investment Grade funds, which invests at least 80% of its portfolio in federal government bonds or low-risk debt, attracted BRL 11.8 billion, little more than half of total net purchases.
Ian Caó, founding partner and CIO of Gama Investimentos, said that the awareness work being carried out by market professionals regarding the importance of diversifying portfolios in other geographies, contributed to the increase in some international investments strategies.
Fixed-income funds lead with inflows of BRL 12.6 billion in the month.
