Investment funds see net inflows of R$60.7bn in 2024 | Markets

The industry’s total assets under management reached R$9.2 trillion by December, slightly down from R$9.4 trillion in November. “This was the third-best year for net inflows, behind only 2020 and 2021, and marked a reversal of 2023’s significant outflows,” Mr. Rudge said.

Fixed-income portfolios attracted R$243 billion in net inflows, while multimarket funds experienced net outflows of R$356.7 billion. Equity funds also saw withdrawals, totaling R$10 billion.

Receivables investment funds (FIDCs) saw R$113.5 billion in inflows, though a significant portion (R$44.6 billion) came from a single vehicle dedicated to agribusiness and trade. Pension funds also stood out, with R$37.4 billion in inflows, while private equity funds (FIPs) attracted R$34.6 billion.

ANBIMA highlighted the growing role of corporate debt in fund portfolios, with its share rising from 8.9% at the end of 2020 to 16.4% by November 2024. Bank-issued securities also gained traction, increasing from 6% to 10.2% over the same period. Meanwhile, exposure to government bonds decreased from 51.3% to 43.9%, while repurchase agreements—typically short-term—rose from 18.6% to 21.4%, coinciding with the Selic policy rate’s jump from 2% to 11.25% annually.

Funds with 50% to 70% of their assets allocated to corporate debt attracted R$113.3 billion in inflows by November, while those with more than 70% captured an additional R$102.9 billion.

“Private securities have gained importance in recent years, driven by the activity in capital markets, with companies issuing instruments like debentures, which are increasingly absorbed by investment funds,” Mr. Rudge explained. “This reflects the other side of the coin: while capital markets provide supply, funds represent a growing share of the demand.”

He added that the number of corporate debt funds also grew, from 30,500 to 31,700, indicating that inflows were not limited to existing portfolios. “This demonstrates the market’s response to higher interest rates, with new funds and strategies emerging to diversify asset managers’ business lines,” Mr. Rudge said.

He expects fixed-income strategies to remain dominant in 2025, as the Selic rate is projected to rise further. “Investor behavior is likely to remain focused on conservative products offering attractive returns,” he said.

Infrastructure funds also benefited from the trend, with assets under management increasing from R$68.4 billion to R$186.4 billion. New fund launches and consistent monthly inflows throughout 2024 fueled this growth. Restrictions on eligible collateral and the extended maturities of tax-exempt instruments for individual investors—such as real estate and agribusiness credit certificates and notes (CRIs, CRAs, LCIs, and LCAs)—played a significant role in boosting these pooled investment portfolios.

Multimarket funds showed some improvement in performance during the second half of 2024, and Mr. Rudge expressed hope that the category might eventually regain inflows. Many funds in the segment ended the year underperforming the CDI (Interbank Deposit Certificate) benchmark.

“As economic stability and predictability improve, and as performance stabilizes, these funds should attract renewed interest,” Mr. Rudge said.