Latam Equity Quant: LatAm yet to attract global inflows

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Latam Equity Quant: LatAm yet to attract global inflows

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Latam Equity Quant

LatAm yet to attract global inflows

Investment Strategy

Key takeaways 10 July 2026

Investment Strategy• Investors continue to rotate into tech-heavy EM markets, with South Korea and

Latin America Taiwan attracting the bulk of inflows.

• Brazil equity funds continue to see modest outflows despite improving market

performance.

• See our latest early estimates of the upcoming Ibovespa and MSCI index reviews on

page 2 and 3.

This week in numbers

Performance of the week, USD terms: Ibovespa flat, Mexbol -1.5%, versus the S&P

David Beker >>

500 +0.8%, EM -2.6% in USD total return terms. Brent oil +5% this week. Our Bz Econ/FI & LatAm EQ Strategy

quantitative screen of “Brazilian Magnificent 7” stocks, (Mercado Libre, Nubank, WEG, Merrill+55 11Lynch2188 (Brazil)4371

BTG Pactual, Raia Drogasil, Localiza, and Itaú), which has a growth bias, is +1% this david.beker@bofa.com

week. Our “Unforgettable 7” screening (Petrobras, Vale, JBS, Banco do Brasil, Ambev, Paula Andrea Soto, CFA >>

Bradesco, Gerdau), which has a value bias, is -0.2% this week. LatAmMerrill LynchEquity (Brazil)Strategist

+55 11 2188 4226

We continue to see outflows from global funds dedicated to Brazil and LatAm paula.soto@bofa.com

(Exhibit 21). Also, EM (ex-China) recorded US$3.3bn inflows this week (Exhibit 24). Carlos Peyrelongue >>

Investors continue to rotate into tech-heavy EMs (South Korea and Taiwan). MexMerrillEqLynchStrat/Research(Mexico) Analyst

+52 55 5201 3276

$0.1bn inflows to BZ equity funds last week. This is compared to an avg of R$0.6bn carlos.peyrelongue@bofa.com

outflows a week in 1Q26. YTD, we see R$10bn outflows, versus -R$48bn in 2025 and - Mateus Conceicao >>

R$30bn in 2024 (Exhibit 15).