Investor interest in Brazil, LatAm on the rise, says IIF

The interest of foreign investors in Latin America – particularly in Brazil – is growing, according to a report from the Institute of International Finance (IIF).

The institute, made up of the largest banks in the world, found that emerging markets as a whole received US$25.5bn from foreign investors in April.

While all four emerging market regions registered inflows in April, Latin America saw the highest, with US$12.0bn. Asia followed, with US$11.2bn in inflows.

According to the IIF report, Latin America and Asia accounted for US$23.1bn of total inflows, "as Korean and Brazilian equities continued to recapture some of the outflows from prior months, while bond issuance was strong again in April."

April's inflows for all emerging markets followed a 21-month high of US$37.1bn the previous month. Despite the slowdown, April was still above the monthly average since 2010 of US$22bn.

Of the total funds invested in emerging markets in April, most of them – US$20.5bn – went into debt, while equities received US$5.0bn.