By Alexander Ragir and Paulo Winterstein - Source: BLOOMBERG
Brazilian pension funds may sell as much as 70 billion reais ($39 billion) of government bonds after falling interest rates led regulators to lift limits on investing in non fixed-income assets, according to SulAmerica Investimentos.
The money likely will move into hedge funds, corporate bonds, stocks and private equity over the next three years, said Marcelo Mello, vice-president of Sao Paulo-based SulAmerica, a unit of insurer Sul America SA. Up to 42 billion reais may go to stocks to help the funds reach their annual return requirements of about 6 percent above inflation, according to Barclays Plc. Read More...in BLOOMBERG
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