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Investing.com -- Brazilian local equity funds experienced reduced outflows of R$3.5 billion in May, a significant decrease from the R$7.5 billion outflow recorded in April, according to data from ANBIMA cited in a Bank of America report.
The allocation to equities within Brazil’s fund industry increased to 7.8% in April, reaching its highest level since bottoming at 7.4% in December 2024. This remains below the previous peak of 9.5% recorded in December 2023.
Brazilian savings accounts have shown muted flows in recent months, with R$21 billion in outflows year-to-date, contrasting with R$51 billion in inflows during 2024. Bank of America suggests this lack of inflows into savings accounts may indicate pressured disposable incomes among Brazilian consumers.
Credit funds in Brazil faced accelerated outflows, losing R$20 billion in the last month and R$49 billion year-to-date, further highlighting shifting investment patterns in the Brazilian financial market.
Bank of America’s weekly analysis confirmed the trend of slowing outflows from local equity funds at the margin over the past month, providing additional evidence of the changing dynamics in Brazil’s investment landscape.
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