Fund industry draws inflows despite volatility

Even with the turbulence seen in August - especially with the real’s 10.1% devaluation against the dollar amid a volatile external scenario and electoral uncertainties -, the investment fund industry ended the month with net inflow of R$12.7 billion, totaling R$61 billion raised in the year through August and a 6.8% increase in 2018.

The Fixed-Income class drew R$9.5 billion of new funds, maintaining its net inflow for the second consecutive month. However, the result was not enough to reverse the negative performance throughout the year - the segment accumulates a R$9.3 billion net outflow in the first eight months of 2018.


The class with the second highest net inflow in August was that of Pension Funds (R$2.6 billion), with the Fixed Income - Pension Funds type standing out, raising R$1.4 billion. The Equity class saw a R$1.6 billion net inflow in August, a volume concentrated in a few investors and that does not reflect a return after the flight-to-quality trend seen in the last two months, driven by the deterioration of the economic outlook, both in the domestic and external markets, coupled with the uncertain political scenario in Brazil.

The Balanced-Mixed class raised R$296.6 million in the month, a much lower amount when compared to its monthly average in the year through July of R$5.3 billion. Yet in the year-to-date period it is still the ANBIMA class with the highest net inflow, totaling R$39.1 billion between January and August 2018. The higher risk aversion among some investors explains the falling inflows into this class of funds, given the market volatility.

Among the most representative ANBIMA types, the Balanced-Mixed Foreign Investments was the one showing the best performance in the month (2.6%), and also in the year-to-date period up to August (9.6%). In the Fixed-Income class, the Fixed Income - Short Duration Investment Grade, with the largest assets within the class, obtained a 0.6% return. Within the Equity class, almost all types of funds showed negative return, reflecting the more adverse scenario in this segment.