LatAm Fund Manager Survey: Cautious positioning amid election uncertainty

Research evidence excerpt

LatAm Fund Manager Survey: Cautious positioning amid election uncertainty

LatAm Fund Manager Survey

Exhibit 2: % of investors planning on increasing their equity allocation Exhibit 3: What do you consider the biggest external tail risk for LatAm

in the next 6 months markets?

Share of investors planning to increase equity allocation is below hist. Higher US rates considered the biggest tail risk.

80%

% planning on increasing Average Higher US rates

60% Strong USD

Geopolitical events 40%

China and commodities

20% May-26

US Slowdown Apr-26

0%

0% 10% 20% 30% 40% 2018 2019 2020 2021 2022 2023 2024 2025 2026

Source: LatAm Fund Manager Survey Source: LatAm Fund Manager Survey

BofA GLOBAL RESEARCH BofA GLOBAL RESEARCH

Exhibit 4: Which sectors within equities are you most overweight? Exhibit 5: Which sectors among equities are you most underweight?

Participants are most overweight utilities Participants are more underweight than they are overweight in cons.

discretionary, communication services, cons. staples, and industrials.

Utilities

Energy

Financials

Materials

Consumer Staples Consumer Staples

Consumer Discretionary Consumer Discretionary Overweight

Industrials May-26 Industrials

Underweight Communication Services Apr-26 Communication Services

0% 10% 20% 30% 40% 0% 10% 20% 30% 40%

Exhibit 6: Which strategies do you believe could outperform over the Exhibit 7: What are your expectations for the USD in 2026?

next 6 months? Most participants expect a weaker USD in 2026.

Growth is now the favorite strategy.

May-26

Growth Stronger USD

Apr-26 High quality

Commodities / exporters

Unchanged Value

Banks

High volatility / high beta Weaker USD

High dividend yield May-26

Low volatility / low beta Apr-26

0% 20% 40% 60% 80%

0% 20% 40% 60%

Source: LatAm Fund Manager Survey