LatAm Fund Manager Survey: FMS maintains a more cautious tone on LatAm

Research evidence excerpt

LatAm Fund Manager Survey: FMS maintains a more cautious tone on LatAm

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?

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

80%

% planning on increasing Average Higher US rates

Strong USD

60%

US Slowdown

40% Geopolitical events

China and commodities Jul-26

20%

US tariffs Jun-26

0% 0% 20% 40% 60%

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 financials Participants are more underweight than they are overweight in cons.

discretionary, cons. staples, materials, and energy.

Financials

Utilities Utilities

Consumer Discretionary Consumer Discretionary

Energy Energy

Industrials Industrials

Materials Materials

Overweight Communication Services Jul-26 Communication Services

Consumer Staples Jun-26 Consumer Staples Underweight

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 stronger USD in 2026.

High quality and value are the favorite strategies.

High quality Stronger USD

Value Jul-26

High dividend yield

Jun-26

Low volatility / low beta Unchanged

Jul-26

Growth

Commodities / exporters Jun-26

Banks Weaker USD

High volatility / high beta

0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50%