September 2019

19Sep

Brazil’s Petros Pension Aims to Increase Private Equity Investment in 2020

One of the largest state-run pension funds in Brazil could gradually resume investing in private equity next year, following a period of cutting back its exposure to the asset class and changes in the rules governing the investment vehicles themselves. “It’s a move that will happen in slow motion,” Alexandre Mathias, chief investment officer of the employee pension fund at state-run oil giant Petróleo Brasileiro SA, or Petrobras, said of the plan to resume making fresh investments in the...

September 19, 2019
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04Sep

Giant Norway pension fund weighs Brazil divestment over Amazon deforestation

KLP, Norway’s largest pension fund, with over US$80 billion in assets, is saying it may divest from transnational commodities traders operating in Brazil such as Archer Daniels Midland (ADM), Bunge and Cargill, if they work with producers who contribute to deforestation. KLP has $50 million in shares and loans with the firms. KLP is also reaching out to other investors to lobby them to use their financial influence to curb Amazon deforestation via supply chains. On August 28, Nordea,...

September 4, 2019
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August 2019

09Aug

Brazilian Hedge Funds Are Betting Big on Stocks

Brazil’s top hedge fund managers are increasing bets that the stock market will be the best place to profit from the government’s expanding reform agenda. Firms including Verde Asset Management, which has almost 40 billion reais ($10.1 billion) under management, and Bahia Asset Management increased their holdings of local equities after the pension system overhaul cleared its biggest hurdle in the lower house last month. BlueLine Asset Management, which recently launched its first fund, is favoring Brazilian shares over...

August 9, 2019
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July 2019

19Jul

Brazil’s Lower House Delays Pension Reform Vote, Irking Investors

Brazil’s lower house has delayed its second vote on pension reform, and the Senate is already dragging out its first of two votes, creating investor woes as the stock market dipped. Things were looking good last week as the Chamber of Deputies approved the overhaul in its first of two voting rounds with expectations that lawmakers would conclude their task before the house broke for its July 18-31 recess. But too many deputies took vacation early, so the lawmakers...

July 19, 2019
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11Jul

Brazilian President Jair Bolsonaro pension reform passes first vote in Congress

Brazilian President Jair Bolsonaro's ambitious pension reform bill passed an initial vote in Congress Wednesday, a major step for his efforts to boost confidence in the country's lagging economy. In the first of two votes, the lower house of Brazil's Congress approved the reform measure, a boon for Bolsonaro whose signature economic policy has faced stiff resistance from trade unions and a hostile Congress. Social activists and union members protested the proposed measure in Sao Paulo on Wednesday evening....

July 11, 2019
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09Jul

Threats Remain to Brazil’s Pension Bill Despite Investor Cheer

While investors cheered the progress of Brazil’s key pension reform bill last week, there’s no certainty that its passage through the rest of the legislative process will prove smooth. A day after the lower house special committee approved the text, President Jair Bolsonaro said there are some errors in the bill that need correcting. Members of his party, the PSL, are grumbling about the lack of special treatment for police. Meanwhile time is fast running out for a vote...

July 9, 2019
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05Jul

Pension reform prospects lift Brazil’s real, stocks

Brazil's currency and stocks rose on Thursday after a congressional committee in charge of analyzing the government's pension reform bill approved its main text. The draft bill, which analysts say is critical to improving Brazil's fiscal health and economy, could now be put to a lower house plenary vote before recess on July 18. Brazil's real hit a more than three-month high, while the Bovespa stock index surged 1.7% to...

July 5, 2019
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June 2019

27Jun

Brazilian real falls on economy worries, dollar lifts other Latam forex

The Brazilian real dipped on Tuesday on worries about the country's economy and pension reform plans, while other Latin American currencies rose against a weaker dollar. The Brazilian real edged lower for a second day, while the Mexican peso hovered near two-week lows even as the greenback touch new lows against a basket of major currencies. FRX/ Minutes from the Brazilian central bank's June policy meeting showed the economy is stagnating and uncertainty surrounding economic and fiscal reforms is...

June 27, 2019
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20Jun

Brazil’s Central Bank Keeps Key Rate at Its Record Low

Brazil held its benchmark interest rate at a record low and signaled it can cut borrowing costs to help a frail economy once a key austerity measure advances further in Congress. The bank’s board, led by its President Roberto Campos Neto, on Wednesdaykept the Selic unchanged at 6.50% in a decision expected by all but one of the 39 economists in a Bloomberg survey. Officials have held borrowing costs steady for over a year. In the statement accompanying the...

June 20, 2019
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19Jun

Brazil lawmakers open pension debate as Bolsonaro pushes private savings accounts

Brazil's congressional committee on pension reform began debating a revised bill on Tuesday, as President Jair Bolsonaro urged lawmakers to rethink their move to drop his plan to introduce a retirement system based on private savings accounts. The debate, which could extend into next week, comes ahead of a committee vote on the bill by June 26, according to lower house Speaker Rodrigo Maia, before it is considered for plenary approval. Committee Chairman Marcelo Ramos said he hopes for...

June 19, 2019
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