LatAm Equity Strategy: Flows to know

Research evidence excerpt

LatAm Equity Strategy: Flows to know

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LatAm Equity Strategy

Flows to know

Investment Strategy

LatAm equities slowing down as foreign flows decelerate 15 May 2026

LatAm equities have underperformed global markets in the past weeks, as attention has Investment Strategy

shifted to the tech/AI theme. Asian tech companies (mainly Taiwan and South Korea) are Latin America

main drivers for EM in 2026 (see Quilt of Returns in Exhibit 5). Inflows into EM ex-China

are slowing down but remained positive April. In Brazil, foreign outflows from the local

exchange (B3) accelerated in the past month (Exhibit 25). Meanwhile, Brazil equity funds

posted inflows for the first time since Sep-25, while corporate credit funds posted Paula Andrea Soto, CFA >>

LatAm Equity Strategist

outflows for the first time in a year. Merrill Lynch (Brazil)

+55 11 2188 4226

LatAm remains an inflow destination within EM paula.soto@bofa.com David Beker >>

EM ex-China funds had US$7.9bn inflows in April, from US$9.3bn in March. YTD, we see Bz Econ/FI & LatAm EQ Strategy

US$91bn, from US$48bn in 2025 (Exhibit 8). Despite LatAm underperforming EM over Merrill Lynch (Brazil) +55 11 2188 4371

the past month, the region continued to attract positive inflows, largely driven by Brazil. david.beker@bofa.com

In contrast, the largest EM outflows were concentrated in S. Korea and India (Exhibit 11). Carlos Peyrelongue >>

Mex Eq Strat/Research Analyst

BZ April flow: foreigners bought Energy & Financials Merrill+52 55Lynch5201 (Mexico)3276

Foreigners turned net sellers in B3 in April (-R$1bn), with futures outflows (-R$4bn) carlos.peyrelongue@bofa.com

offsetting cash inflows (+R$3bn). Cash inflows were strong until mid-April but reverted MateusLatAm EquityConceicaoStrategist>>