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05/25/2009 09h54

Brazil raises US$ 398 million in the week

Valor Econômico – 05/25/2009

Foreign funds continue arriving in Brazil in search of greater profitability. Only in the third week of March, ended on the 20th, the share investment funds aimed at the Brazilian market received another US$ 398 million, increasing the total amount raised in the year to more than US$ 2.6 billion.

According to EPFR Global, consulting firm that follows up the world activity of the funds, Brazil's good performance shows how anxious are the investors to put their money to work after months of low earnings in bonds from developed countries.

For the managing director of the consulting firm, Brad Durham, a clear signal of that is that investors withdrew another US$ 21 billion from the "money market funds", which seek low term and low risk investment, in the week ended on the 20th. Those funds offer safety, but low profit, and account withdrawals of US$ 78.2 billion in the year.

The reasons for such a race to the emerging countries are already fairly well known, such as the greater resistance to the crisis, better response to the Governmental actions, besides the little indebted and expanding domestic market. Brazil, in special, benefits from its direct exposure to China, which reaffirms the growth forecast of 8% in 2009.

During the week ended on the 20th, all share investment funds from emerging markets raised US$ 2.46 billion. EPFR Global emphasizes that since the second week of May, when such inflow restored its strength, the emerging countries have received more than US$ 21 billion.

Among the four great groups of emerging countries, the funds aimed at Asia (not considering Japan), raised the greatest amount during the week. It was US$ 933 million But the appreciation of the commodities in the period put the share investment funds aimed at Latin America, which received US$ 587 million, in the spotlight. This year, this group, in which Brazil is the leader, has already raised US$ 3.2 billion until the 20th. In terms of percentage over managed assets, which places the Latin American funds in first place among all emerging countries.