Brazilian mutual funds faced net selling of R$4.7 billion in October, leading to outflows of R$70.2 billion in the year.

The Balanced-Mixed class saw the largest net disposals, of nearly R$13.4 billion, losing R$64.8 billion since January and R$78.7 billion in 12 months. The Balanced-Mixed/Foreign Investment had the largest net selling of R$4.7 billion in October, followed by the Balanced-Mixed/Macro, with R$4.5 billion in outflows. The Balanced-Mixed/Free lost R$2.8 billion while the Interest and Currency type saw redemptions of R$1.2 billion.

The Fixed-Income class recorded net outflows of R$11.6 billion in October, with the largest selling in the Short Duration/Sovereign (-R$5.8 billion), followed by the Short Duration/Investment Grade (-R$5.6 billion) and Free Duration/Investment Grade (-R$5.4 billion). Meanwhile, the Free Duration/Free Credit type attracted R$15.5 billion.

The Equity class received net purchases of R$10 billion in October, shrinking this year’s outflows to R$28.4 billion and continuing the buying trend for the second consecutive month. The result reflects a single influx of R$12 billion in the period.

Among structured funds, Credit Receivables Investment Funds (FIDCs) recorded net inflows of R$11.1 billion after an allocation of R$10 billion in October. FIDCs received R$16.3 billion and R$31.8 billion in 2023 and 12 months, respectively. Private Equity Funds saw net purchases of R$283 million, with inflows totaling R$42.4 billion in the year.

In Fixed Income, the Short Duration/Investment Grade fund, with the largest assets in the class, gained 1.02% in October, showing a 10.69% return in 2023. The Equity – Free Portfolio was down 4.35% in October but is still up 5.69% in the year. All equity funds faced losses in October. In the Balanced-Mixed class, the Free type was unchanged, with the Macro fund down 0.7% and the Foreign Investment losing 0.66%. In Balanced-Mixed class, only three types saw gains (Balanced-Mixed, Dynamic and Interest and Currency).