Bloomberg – Brazilian money managers will open more funds targeting real estate, private equity and corporate debt as record low interest rates reduce demand for government bonds, said Jose Luiz Osorio de Almeida Filho, a former chief securities regulator.
Investors pulled 7.8 billion reais ($4.3 billion) from funds tied to interest rates this year, reducing their portion among total fund assets tracked by Brazil’s investment association to 14 percent, the lowest level on record. Hedge funds, asset-backed commercial paper funds, stocks and fixed- income funds attracted money after policy makers cut rates five times this year, according to the association, known as Anbid.
