Historically, the percentage of dividend payers in Brazil has ranged between 71% and 87%,[1] making it a propitious environment for implementing dividend-focused strategies. The highest-yielding stocks in high-yield strategies often come with greater portfolio volatility,[2] and Brazil is no exception. This blog explores the rationale behind the implementation of a low volatility high dividend strategy Read more […]
Since the beginning of 2019, the Brazilian stock market has been in bullish territory, generating double-digit gains in January alone (10.59% in local currency and 17.71% in U.S. dollars).[1] Market participants are calling for a strategy to help them take advantage of the current favorable view on Brazilian equities. The S&P/B3 High Beta Index may Read more […]
Last week, the SPIVA Latin America Mid-Year 2018 Scorecard was released. The scorecard tracks the performance of active mutual funds in Brazil, Chile, and Mexico through the end of June 2018. Exhibit 1 shows how managers fared against their respective category benchmarks for one-, three-, and five-year lookback periods. In the short- and long-term periods, Read more […]
Over the past 10 years, the highest overnight reference rate from the Brazilian Central Bank has been 14.25% from July 2015 through September 2016. In an attempt to hold back the depreciation of the Brazilian real and to keep inflation within the target range, the reference rate dropped 775 bps to 6.50% at the end Read more […]
In this blog, we estimate the impact of survivorship bias on the performance of active equity funds in Brazil compared with the benchmark, the S&P Brazil BMI. We do so by replicating the outperformance report from the SPIVA® Year-End 2017 Latin America Scorecard, while removing all the liquidated and merged funds. We noted in a Read more […]
Following similar studies performed by S&P Dow Jones Indices on active funds in the U.S. and Australia, we introduce the Persistence Scorecard to the Latin America region. The two aforementioned studies have demonstrated that top-performing active funds have little chance of repeating that success in subsequent years. To determine if similar conclusions can be made Read more […]
Since 2015, S&P Dow Jones Indices has been reporting on the performance of actively managed equity funds in Brazil through the S&P Indices Versus Active (SPIVA®) Latin America Scorecard. Aside from the performance of the funds, we observed that a significant number of Brazilian equity funds have liquidated or merged within the past five years. Read more […]
The SPIVA Latin America Year-End 2017 Scorecard, which tracks the performance of active funds in Brazil, Chile, and Mexico relative to category benchmarks, was recently released. To ensure that the report is as relevant as possible to market participants, the S&P/BMV IRT, the total return version of the S&P/BMV IPC, is being introduced as the Read more […]
After Donald Trump became the 45th president of the U.S., the Dow® hit the 20,000 mark for the first time in history, there was a total solar eclipse, along with massive hurricanes, floods in Colombia, earthquakes in Mexico, a referendum in Catalonia, and the New England Patriots made an historic comeback in Super Bowl LI, Read more […]
At the annual ABRAPP (Associação Brasileira das Entidades Fechadas de Previdência Complementar, the organization representing pension fund managers in Brazil) conference, sustainability was one of the headline topics. The conference allowed for in-depth discussions with Brazilian institutional investors, regulators, officials from B3 (formerly known as Bovespa and now the largest exchange in Latin America), trade Read more […]
