LatAm Fund Manager Survey

The June LatAm Fund Manager Survey shows a shift toward defensive positioning, with investors favoring quality and dividends while expressing increased pessimism regarding Brazilian equity and rate outlooks. Sentiment is tempered by concerns over geopolitical risks and higher-for-longer US interest rates.

Key Takeaways

• 1.Investor sentiment for Brazilian equities has soured, with lower expectations for the Ibovespa and increased concerns regarding downward earnings revisions.
• 2.Positioning has shifted toward a more defensive stance, characterized by higher-than-average cash levels and a preference for quality and dividend-focused strategies.
• 3.Inflation and interest rate expectations in Brazil have hardened, with a majority of respondents not expecting the Selic rate to drop below 14% by year-end 2026.

Table of Contents

• Expectations for Ibov & earnings declined
• Cash levels above hist; Preference for quality, dividends
• BRL at more depreciated levels, Selic >= 14% this year
• Bullish on Argentina; Colombia becomes favorite Andean
• Portfolio allocation
• LatAm survey demographics data
• Disclosures

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