Market roundup: Brazil’s fund market gets a boost

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April brings new momentum to Brazil’s fund market

In April, the new regulatory framework for investment funds issued by the Securities and Exchange Commission (CVM) at the end of last year goes into effect.

Why it matters. The new framework is seen as a revolution in the fund market, allowing local asset managers to allocate up to 100 percent of their investments abroad and offer them to Brazilian investors.

The provision enables “qualified” investors with over BRL 1 million (USD 190,000) to access investment options that were previously reserved for professional investors, including global hedge funds.
Moreover, individual investors can now access a broader selection of investment opportunities, including Tier-1 Brazilian Depositary Receipts (BDRs) — certificates that represent shares issued by companies located in foreign countries.

What they are saying. “This regulatory framework not only corrects anomalies but also aligns the Brazilian market with global standards,” states Bernardo Queima, CEO of Gama Investimentos, an asset management firm that facilitates access for Brazilian investors to opportunities offered by global players such as Oaktree and Bridgewater.

“Via funds set up by local managers, costs are diluted and investments become more accessible,” says Romeu Amaral, a lawyer specializing in M&A and capital markets. “Many smaller investors would not have access to this...

Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.