Brazil equity fund outflows slow in August as foreigners return to market

Published 05/09/2025, 09:28
© Reuters.

Investing.com - Brazilian domestic equity funds saw reduced outflows in August compared to previous months, while foreign investors returned as net buyers, according to data compiled by Morgan Stanley.

Domestic-oriented equity funds experienced net outflows of BRL1.6 billion in August, significantly lower than July’s BRL4.9 billion outflows and June’s BRL6.5 billion exodus. The August figure represents an annualized outflow rate of approximately 4% of assets under management when including global dedicated funds.

Foreign investors reversed course in August, recording net purchases of BRL1.2 billion in Brazilian equities, contrasting with July’s BRL6.4 billion in net sales. Local institutions continued as net sellers with BRL1.3 billion in outflows, while individual investors shifted to net sellers with BRL1.4 billion in outflows after being net buyers in July.

Multi-market funds faced BRL7.6 billion in net outflows during August, representing an annualized rate of 6% of assets under management. Fixed income funds saw BRL7.8 billion in outflows, equating to a 2% annualized outflow rate.

Year-to-date through August 31, equity funds have experienced BRL49.5 billion in net outflows, with BRL15.6 billion occurring in 2024 alone. Multi-market funds have seen BRL77.0 billion in outflows this year (BRL349.5 billion in 2024), while fixed income funds have attracted BRL92.7 billion in net inflows (BRL258.0 billion in 2024).

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