Brazil raises funds, but South America has withdrawals
Valor Econômico 03/17/2009
The equity funds aimed at Latin America marked the second consecutive week of losses of resources. In the year to date until the March 11, however, such portfolio still registered net funding of US$ 773 million. The total may not seem much, but, when compared to the equal period of last year, the figure gains other proportion. In that period, the result was negative at US$ 1.4 billion. Still among the emerging countries, according to figures of EPFR Global, consulting company that follows up the activity of the funds worldwide, there was an ingress of US$ 92 million in the equity funds intended for Asia (no counting Japan) in the week ended on the 11. With regard to the category of the diversified Global Emerging Markets (GEM) they registered funding of US$ 340 million in the period. In the year to date, the Asian funds had net withdrawals of US$ 1.74 billion, whereas the GEMs featured inflows of US$ 1.62 billion. The emerging markets of Europe, Middle East and Africa (EMEA), started being the target of withdrawals from the investors in the week ended on the 11. In the year, the category has already lost US$ 1.2 billion. In the evaluation per country, the equity funds aimed at Brazil and Mexico received new money, as well as the investment intended for China. With regard to the portfolios that bet in Russia, however, they marked the fourth consecutive week of withdrawals. According to the general-officer of the consulting company, Brad Durham, the emerging markets have showed greater resistance in terms of flow of resources since the beginning of the year if compared to the developed countries. One explanation would be the faith these countries present as a better tax profile when compared to the countries of the center.