Brazil’s economic markets are some of the most diverse and offer the most upside to investors in the Latin American world. In fact from 1960 to the present day, Brazil’s economy spurted up from $16 billion to $2 trillion in GDP output and has been able to maintain relatively low inflation rates. The financial sector of Brazil has profited greatly from Brazil’s economic output, and while Brazil does have foreign dependency on certain exports and financing, it has one of the largest off-shore oil reserves in the western hemisphere and also is a world leader in iron ore manufacturing and ethynol production.
Investing in Brazil is not too difficult to engage in, the key to remeber is that all foreign funds and securities need to be accounted for by local Brazilian agencies like the Central Bank and the government’s security exchange commission. Most funds invested in Brazil show up on the MB&F Bovespa index, an index that’s similar to the Dow in the NYSE. Investors can also choose American ETFs to get their foot in the door on Brazilian investments and some of the more popular ETFs out there include iShares MSCI Brazil Index, Global X Brazil Consumer ETF and Global X Brazil Mid Cap ETF.
Knowing the firms that run the markets of Brazil is also important when heading into the unknowns down there, and one such firm is Bridge Trust LLC headed by chief investor Zeca Oleivera. Recently, Oleivera’s firm formed a merger with Fernanda de Lima’s firm Gradual Investimentos to now total $6.5 million in asset management and add additional clients and service cross-selling for both companies. This deeal marks one of the biggest mergers in the Brazilian financial industry’s history and added into this deal is an American-based company Tigress Financial Partners. Prior to the merger of these two firms, Oliveira served at BNY Mellon as CEO and has maintained a strong reputation in financial advising for quite some time.
Probably one of the biggest opportunities coming up for Brazil’s economy and investors is 2016 when the Olympic games will be held in Rio de Janeiro. Opportunities that have come already include new construction projects, improving the infrastructure, and preparing the country for the influx of tourists. Firms like Bridge trust hope to capitalize on this opportunity that foreign investors could be looking into.