Selected Investment Funds (SIF) Fund Insert
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Local institutional investors in Brazil—pension funds and mutual funds—have been less
active in the equity market. For instance, mutual funds’ asset allocation has been
concentrated in safe and liquid assets such as government bonds and repo transactions.
Pension funds, whose return target is typically set to achieve a certain spread over the rate of
inflation in the context of a high short-term interest rate environment, tend to invest in
inflation-linked bonds rather than equities. As such, lower interest rates and rising valuations
in the equities, if supported by fundamental improvements in corporate prospects, could
attract a greater number of companies...
Nội dung trích xuất từ tài liệu:
Selected Investment Funds (SIF) Fund Insert
Nội dung trích xuất từ tài liệu:
Selected Investment Funds (SIF) Fund Insert
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