| SAO PAULO, March 9
SAO PAULO, March 9 Assets under management by
Brazilian wealth managers increased by a fifth last year as
financial markets rallied, industry regulator Anbima said on
Thursday, a sign of increased investor confidence in Latin
America's largest economy.
Assets under management rose 20.7 percent to 90.1 billion
reais ($28.3 billion) in 2016, at a time when Brazil's benchmark
CDI interbank rate averaged 14 percent.
Fixed-income products accounted for nearly half of all
investments, slightly above the year before.
Brazilian interest rates rank among the world's highest,
boosting the allure of government bonds as the country's deepest
recession ever weighed on corporate profits over the last three
Still, equity investments rose as a share of total assets
for the first time since at least 2014, tracking a historical
rally in Brazilian stocks and the first rate-cutting cycle in
Brazil's benchmark Bovespa stock index jumped 38.9
percent in 2016, boosted by hopes that center-right President
Michel Temer would curb public spending following the ouster of
his leftist predecessor Dilma Rousseff.
In a conference call, Anbima director Ricardo Ziliotto said
he expects positive trends to continue in the coming year as
Temer advances structural reforms and interest rates continue to
"The industry is moderately optimistic, as we can tell not
only by the figures but also by meeting with clients," he said.
Equities and cross-asset funds, which can invest in a
diverse range of products, are likely to benefit the most from
the rebound, Ziliotto added.
Reuters has reported major cross-asset funds have closed off
to new entrants in face of surging demand, while others have
opened new vehicles to capitalize on the trend.
($1 = 3.1797 reais)
(Reporting by Bruno Federowski; Editing by Tom Brown)