Despite third-quarter outflows from global products, asset managers expect a trend reversal in the coming months. Franklin Templeton’s Daniel Popovich observes “a clear move to diversify internationally” as institutions prepare to rebuild offshore positions.
Brazilian pension funds to broaden global exposure as monetary easing takes hold
Brazilian international fund outflows surge amid recent exchange rate volatility
International investment funds faced net withdrawals of USD 2.4 billion in 2024. Yet, global credit and US equity strategies emerged as key opportunities, attracting demand from the institutional and the wealth channel.
Feeder funds had withdrawals of USD 870 million in 2023 but a reversal is expected ahead
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.
Brazilian funds investing abroad were battered in 2022, but a recovery is expected for 2023
Franklin's Daniel Popovich along with peers from JP Morgan and Santander, says managers in Brazil noticed a pickup in global fund sales in 4Q 2022 after a difficult nine months.






