Discover 5 funds to invest outside Brazil

​With the increase in economic and political uncertainties for Brazil in 2022, investments abroad started to arouse growing interest among Brazilian investors over the past few months.

And while the US tech giants are, in fact, among the top bets when thinking about a global portfolio allocation, fund managers who have been standing out for the past 12 months say they have explored a far wider range of options. in the global market.

Actions by health sector conglomerates or more related to the theme of reopening of developed economies, as well as alternatives in international fixed income in a scenario of high inflation, are some of the themes that are being captured globally.

Verde Am Mundi Global Actions FIC FIA – IE

​According to Thiago Harada, co-manager of Verde Asset Management’s global equity strategy, when evaluating global investment within a portfolio diversification, investors need to keep in mind that the internationalization process contributes to reducing investment risk, as appropriate. which adds exposure to roles and sectors that bear little or no relation to what happens in Brazil.

“The decorrelation is an important concept within the portfolio, in order to prevent all your investments from moving in the same way in times of increased risk aversion”, says the expert.

In the portfolio of the manager’s global equity fund, Harada points out popular names from some of the main American big techs, such as Google and Microsoft, but also lesser-known businesses around here.

Among them, the manager of Verde Asset cites Lowe’s, an American construction material company, and Republic Services, which operates in the recycling sector.

“These are high-quality companies that are going to be able to cross the risks and continue the economic recovery in the post-pandemic,” says Harada.

In the 12 months ended October 2021, the Verde Am Mundi Ações Global fund appreciated by 25.3%, considering both the performance of the stock portfolio and the dollar. In the same range, the Ibovespa advances 10.1%.

Nextep Global Equities Long Only

Partner and director of distribution and investor relations at Nextep Investimentos, Rodrigo Lobo cites GE (General Electric) and Berkshire Hathaway as the main bets in the portfolio relatively concentrated in little more than a dozen shares of the Nextep Global Equities Long Only fund. In 12 months, the fund rose 29.3%.

According to Lobo, although the macroeconomic situation is naturally taken into account in the manager’s internal discussions in search of the best opportunities in the market, these are particular aspects related to each business that end up having a much greater weight when making the selection.

In the case of GE, the direction that has been given to the business by the company’s president, Henry Lawrence Culp, in office since 2018, is essential to sustain the positive vision of managers regarding the evolution of the business in the coming years. “[Henry Lawrence Culp] He is an excellent manager, more than proven, totally focused on increasing the efficiency of the company’s operations”, says Lobo.

He adds that, with regard to investing in the shares of the financial conglomerate Berkshire Hathaway, Warren Buffett’s management ability to run the business in diversified lines of activity, ranging from railroads to insurance operations, is also a key point that weighs in favor of allocation.

“The sum value of all the deals under the Berkshire umbrella is much greater than what the market is paying for the shares,” says the expert. He says that the fund’s portfolio still has room for the technology sector, through a relevant position at Google, given the growth avenues the company still has to explore in areas such as cloud computing and YouTube.

Western Asset FIA BDR Level I

Maurício Lima, product superintendent at Western Asset, points out, in turn, the segment of pharmaceutical and biotechnology laboratories, through companies such as Thermo Fisher Scientific, Zoetis and BioMarin Pharmaceutical, among the roles in the portfolio of the Western Asset fund FIA BDR Level I, which appreciated by 33.3% in the 12 months ended in October 2021.

BDRs (Brazilian Depositary Receipts) are receipts traded on the Brazilian Stock Exchange that replicate the performance of shares originally traded on the international market and which are subject to exchange variation.

“It’s a fund that provides investors with an alternative to the Brazil Risk on a permanent basis. And, if structurally it already makes sense to have geographic and currency diversification, given all the fiscal and economic uncertainty that should persist into the coming year with the electoral issues , this diversification makes even more sense,” says the Western Asset superintendent, who, in line with his peers, also cites the technology sector as an important presence in the fund, via names like Facebook, Microsoft, Apple and Nvidia.

Bradesco FIC Global Shares Investment Abroad

Bram Superintendent Rodrigo Santoro Geraldes says that the profitability of around 30% of the FIC Global Ações Investimento no Exterior fund is due to a much more favorable view at this time for the US stock market, to the detriment of emerging countries such as China and America Latin.

He claims that both the technology sector on the American stock exchanges should continue to perform strongly even in a scenario of higher interest rates, given the digitalization process that should only gain strength in the coming years, as well as those companies with a more cyclical nature will continue to surf the process of reopening economies over the next year.

“Today about 80% of the fund’s portfolio risk is focused on the US, with a below-average position in emerging markets,” says the Bram superintendent.

Geraldes says that the global environment looks to be more challenging for 2022 with high inflation and the process of tightening liquidity in the markets promising days of intense volatility, which therefore recommends a more conservative posture.

Vinland Macro Plus FIC FIM

At Vinland Capital, interest and currency manager Jose Oswaldo Monforte says that the process of raising interest rates by the Federal Reserve (US central bank) is one of the main points of attention on the radar for 2022.

Monforte says that the recent result of the house’s multimarket funds — the Vinland Macro Plus FIC FIM has appreciated by around 17% in the 12 months ending in October 2021 — is largely due to the positions that benefited from the start of increase process. interest rates in emerging markets over the past year.

Interest rates in Latin American countries such as Chile, Colombia and Mexico, and also in Eastern Europe, such as Poland, Hungary and the Czech Republic, had to be raised and provided gains for the portfolio, says Monforte.

“Although in different phases, inflation ended up appearing almost everywhere due to the supply shock that combined with the pent-up demand shock”, says the manager of Vinland Capital. He predicts that, after the movement in emerging markets, from now on, the developed ones should start some kind of normalization of their monetary policies.

“We are paying a lot of attention to the dynamics of the US yield curve,” says Monforte, who predicts that the US central bank will be forced to raise interest rates above what is currently being priced by the market.