Investors pulled R$14bn out of more volatile funds in April – ANBIMA

Boletim de Fundos de Investimentos

Investors pulled R$14bn out of more volatile funds in April

The investment fund industry had net inflows of R$38.5 billion in April, increasing this year's total to R$81.4 billion. The result largely reflected the allocation of an FIDC fund, which brought R$48.9 billion – even without this injection, the FIDC class would show a positive balance in the period.

Net inflows of R$4.9 billion to fixed-income funds in April helped the industry’s good performance. The Fixed Income class received the lowest amount since December 2021, when it faced outflows of R$52 billion. Still, the class had net inflows of R$114.4 billion from January to April, the largest since 2002. The Macro ANBIMA Group forecasts interest rates will remain high in the long term, which helps fixed-income funds. In addition, of the R$75 billion in outflows seen in fixed income in April, about R$13 billion was redeemed by a single fund, an indication that outflows have been occasional.

Among fund types, the Fixed Income – Short Duration Sovereign attracted the lion’s share in April, with R$18.4 billion in net inflows – these are funds that only invest in government bonds adjusted by the daily Selic rate.

On the other hand, Equities and Balanced-Mixed funds, the most volatile ones, faced R$14 billion in net outflows, with redemptions of R$7.3 billion and R$6.7 billion, respectively. Both classes show outflows in the first four months: with Equity funds losing R$38.3 billion and R$ 47.2 billion coming out of the Balanced-Mixed type.

Equity - Free Portfolio and Balanced-Mixed - Free led outflows with R$3.6 billion and R$6.4 billion, respectively.

Graphic April - 2022.png

As for returns, all funds in the Equity class were down: the Equity – Sector funds lost 21.64% in April. Meanwhile, all fixed-income funds had gains, with the Fixed Income – Long Duration Investment Grade up 1.59%. In the Balanced-Mixed class, the only fund with losses was the Specific Strategy, down 1% in April.