Boletim de Fundos de Investimentos

Retail Allocation Rises in Balanced/Mixed Funds

The allocation of resources by individuals to investment funds is making a significant impact in the industry. The retail segment, in addition to maintaining a relevant share in Fixed Income funds (86% of funds allocated in July), increased investments in Balanced/Mixed funds (8.6%), reversing the downward trend in the same periods of previous years. In July 2016, that share accounted for 6.9%.


This movement reflected these investors’ search for higher returns, especially in medium and long-term duration investments, which are benefiting from the prospect of interest-rate cuts --the IMA-B 5+, which reflects the portfolio of NTN-B notes over five years, showed returns of 4.67% in July and 10.43% in the year to date.

In August, the investment fund industry raised R$50 billion, up 65% over the previous month. The Fixed Income and Balanced/Mixed classes accounted for 66% of the monthly amount raised, with R$25 billion and R$8 billion, respectively. These funds’ performance also explains the significant total volume raised in the year to August -- R$205.8 billion compared with R$88 billion in the same period of 2016. Fixed Income and Balanced/Mixed funds raised R$102.4 billion and R$58.2 billion, respectively, so far in 2017.


Among types of funds, the highlight was the Fixed Income Short Duration Investment Grade, which raised R$15 billion in the month, accounting for 60.1% of the total invested in fixed income. Among the Balanced/Mixed funds, the Macro type raised R$2.4 billion, equivalent to 30% of the total allocated to this class.

The positive performance of fixed-income assets has been reflected in the yields of funds with higher assets. In August, Fixed Income Short Duration Investment Grade and Short Duration Sovereign showed returns of 0.83% and 0.80%. Among the Balanced/Mixed funds, the Free and Macro types yielded 1.41% and 1.39%, respectively. The environment of low inflation and consequent declining interest rates -- the ANBIMA Macroeconomic Monitoring Committee forecasts the Selic rate at 7% by the end of 2017 --, in addition to the August’s inflation gauge IPCA (0.19%), which came below market expectations, may boost bets on further interest-rate cuts, which would keep offering attractive returns for these segments.