Latin America raises funds and Brazil stands out
Valor Econômico - 02/27/2009
The share investment funds aimed at Latin America continued raising funds in spite of the round of negative news that marked the week ended on February 18, such as the American makers asking the Government for more money and the Eastern Europe banks under suspect of bankruptcy. According to EPFR Global, a consulting company that follows the activity of funds with more than US$ 11 trillion in assets, the category marked the 7th consecutive week of inflow of funds. In this period, the amount destined for the share investment funds of the region amounted to US$ 740 million. Per country, Brazil stood out, marking the 4th consecutive week with inflow of money. Also among the less developed countries, the diversified global emerging markets (GEM) have also received funds. The Asian share investment funds (exclusive of Japan), however, were the target of drawings that amounted to US$ 509 million. According to EPFR Global, such exit of resources is explained by the realization of profits in the funds aimed at China, which lost US$ 450 million. Losses also took place among the share investment funds of emerging countries in Europe, Middles East and Africa (EMEA). There were several reasons for the withdrawals, among them, the concern with the solvency of the Eastern European banks and the impact of the low price of oil in Russia and the Middle East. Since the beginning of 2008, this category has already lost US$ 693 million. Considering all the share investment funds followed by the consulting company, the withdrawals increased from US$ 6.2 billion in the second week of February to US$ 9.2 billion in the week ended on the 18. Among the sectorial funds, the commodities category stands out marking the tenth consecutive week of funds rising. In the period, investors have already put US$ 2.33 billion in such funds. Once again, the subgroups aimed at gold and silver led the raisings of funds.