Chilean AFPs pulled USD 125 million of assets from offshore funds and ETFs in May, cooling on European, Japanese and North American equities as trade concerns plagued markets. Asian and Latin American equities continued to attract flows, however.
Colombian AFPs turned to North American and Japanese equity in March
iShares Core S&P 500 and the iShares MSCI Japan added a combined USD 510 million for the month, as overall system AUM in cross-border funds and ETFs neared USD 20 billion.
Brazilian pensions up their risk profile, turn to equity and hybrid funds
In the 12 months ending in March 2018, flows to equity/balanced mutual funds from Brazilian pension managers amounted to BRL 6.1 billion (USD 1.7 billion) compared with only BRL 570 million in fixed income.
Brazilian investors’ focus on riskier fund classes intensified in first quarter of 2018
Since last October, balanced funds and equity funds have raised BRL 88 billion, compared to BRL 25 billion in outflows for fixed-income funds.
Rate cuts in Brazil led to additional inflows to riskier asset classes in February
Retail investors are flocking to balanced and mixed funds, as well as equities, as inflation slows and interest rates come down.
Colombian AFPs raise exposure to North American equity amid volatility
Colombian AFPs raised their exposure to cross-border funds end ETFs by USD 186 million in February for USD 20.3 billion under management, plunging into North American equity even as volatility rocked US equity markets.
Colombian AFPs began 2018 with a redemption bias in cross-border markets
Despite the outflows, strong returns led to an increase in allocations to cross-border products, which stood at USD 20.9 billion versus USD 19.7 billion at the end of 2017.
Brazilian mutual fund industry raises BRL 25 billion in January
The road ahead for Brazilian fixed-income funds seems rough, as yields are compressed and the benchmark interest rate sits below 7%.