LATIN FINANCE: Fund managers signal return to Brazil

A major shift is taking place among Latin investors. Leading fund managers are starting to reallocate funds to the languishing Brazilian stock market, taking profits out of the Mexican bolsa. The Bovespa is looking good value and an expected GDP growth pick-up together with government action are helping restore confidence while Mexico is looking toppy, say fund managers.

This year, the Mexican stock market has been the darling of investors. The main index, the IPC, ratcheted up 10.18% through August 8 while the Bovespa market has played second fiddle and the main index, the Ibovespa, eked out just 3.41% over the same time period. Overall, Latin funds have cut allocations to Brazil over the last six months and their average allocation dipped below 60% for the first time since the start of the crisis, according to Boston-based Cameron Brandt, director of research at fund flow company at EPFR Global....

This is the start of an article that offers different fund manager perspectives on asset allocation to Latin America and Brazil. To see the full article, please go to the Latin Finance website (www.latinfinance.com). 

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