Investment funds post R$20bn outflow in April

The investment fund industry closed April with net outflow of R$20.1 billion, the worst monthly result in almost a year -- the last monthly net redemption above R$20 billion was in June 2018 amid instability caused by the truckers' strike. In the year to date, the industry still shows net inflow, of R$31.8 billion. In April 2018, the fund industry had posted a R$6.5 billion net inflow, while the year-to-date result had amounted to R$64.9 billion.

G11_Funds_052019.pngThe main redemptions were driven by the Fixed Income class, with net outflow of R$8.9 billion, in which there was a dispersed outflow of funds from several portfolios; the Balanced/Mixed class saw an R$8.9 billion outflow -- a movement focused mainly on the types more linked to economic indicators, signaling investors are reallocating their assets amid the weaker-than-expected economic rebound; and the FIDC with redemption of R$5.6 billion, concentrated in funds that invest in specific segments of the economy, thus not indicating a conjunctural movement.

In the other classes that make up the fund industry, the results came in line with the trend  seen over the last few months. The Equity class ended April with net inflow of R$1.6 billion. while the Pension Fund class raised R$1.2 billion in the month.

The industry’s returns mirrored the market’s lukewarm tone in April. In the Balanced/Mixed class, the most representative ANBIMA types, Foreign Investment, Free and Macro yielded 0.76%, 0.69% and 0.65%, respectively. In the types that make up the Fixed Income class, the Short -Duration Investment Grade, Free-Duration Investment Grade, Short-Duration Sovereign gained 0.51%, 0.67% and 0.43%, respectively. Within the Equity class, the most representative type, the Free Portfolio, ended the month up 1.25%.