S&P DJI’s SPIVA Brazil Mid-Year 2024 report finds funds in the Brazil Equity category underperformed at a rate of 88.0%

 S&P Dow Jones Indices (S&P DJI) published its Mid-Year 2024 SPIVA Brazil focus report, which compliments the SPIVA® Global Scorecard Mid-Year 2024 published earlier this month. As you know, the Scorecard measures the performance of U.S. actively managed funds against their respective benchmarks over various time horizons.

In Brazil, all our reported major equity indices finished the first half of 2024 in negative territory, standing in contrast to 2023 when benchmarks across capitalization ranges rose by double digits. The S&P Brazil BMI, S&P Brazil LargeCap and S&P Brazil MidSmallCap fell 4.1%, 2.3% and 8.5%, respectively. In contrast, the ANBIMA IDA (corporate bonds) and ANBIMA IMA (government bonds) benchmarks were positive during H1, rising 5.1% and 2.4%, respectively. Meanwhile, the S&P 500 rose 32.4% and the S&P World Index was up 28.8% in BRL during H1, outperforming local equities.

S&P DJI’s Head of Specialists of Index Investment Strategy, Joe Nelesen, says: “Our SPIVA Global Scorecard illustrated challenging market conditions for active managers around the world in the first half of 2024, particularly in equities, and Brazil was no exception.”

Below are some additional highlights from the report:

• Funds in the Brazil Equity category underperformed at a rate of 88.0% over the first six months of 2024, rising to 91.7% over a 10-year period. 
• Brazil Large-Cap funds fared similarly, with 88.9% underperforming in H1 and 80.9% failing to beat the benchmark over 10 years. 
• Among Mid-/Small-Cap funds, results were slightly better, with 60.6% of funds underperforming in H1, but that rate rose to 88.4% over 10 years.
• Finally, Brazil Corporate Bond funds and Brazil Government Bond funds had better beginnings in H1 2024, with only 29.0% and 29.2% underperforming, respectively. 

The full data set and analysis for each fund category can be found here. As always, if you would like to speak to Joe, please let me know.

For more SPIVA Scorecard results such as the effect of taxes on indices and active funds, please visit our website here.