BlackRock expects to sustain asset growth in Brazil regardless of election outcome

BlackRock Projects Continued Asset Growth in Brazil Regardless of Election Outcome

BlackRock's Asset Management Outlook in Brazil

By Paula Arend Laier

Growth Projections and Election Impact

SAO PAULO, Oct 2 (Reuters) - BlackRock, the world's largest asset manager, expects to maintain around 30% growth in assets under management in Brazil next year, regardless of the result of this month's general election, the firm's lead executive in the country said.

Interview Insights from BlackRock's Brazil CEO

In an interview with Reuters, Bruno Barino, chief executive of BlackRock for Brazil, said the firm's assets under management in the country are set to grow between 30% and 35% this year, on the back of a 12% rise in 2025 and an outflow in 2024.

Drivers of Growth: International Investments

"I think we can repeat the growth in 2027," Barino said. He noted the move would be supported by rising interest among BlackRock's Brazilian clients in international investments, which represent about 90% of the firm's managed assets in the country. 

BlackRock's Presence in Brazil

BlackRock, which has some $15.3 trillion under management globally, has been growing its operations in Latin America's largest economy, but its presence in the country is still modest when compared to the firm's global footprint. 

"If you look at the world's major investable asset markets, BlackRock is a giant in all of them except Brazil," Barino said. The firm did not disclose the specific amount of its assets in Brazil.

Challenges and Opportunities for Investment

The country's main challenge is competing for long-term investments, and its ability to attract these resources hinges less on the results of the election than on the extent of fiscal reforms and policies aimed at boosting competitiveness, Barino said.

The Role of Fiscal Reforms

Opinion polls have shown President Luiz Inacio Lula da Silva and Senator Flavio Bolsonaro statistically tied in simulated scenarios of the election. "Regardless of who wins, the depth of the reforms will determine Brazil's ability to compete for investment," the executive said.

(Reporting by Paula Arend Laier in Sao Paulo; additional reporting by Luciana Magalhaes and Brad Haynes; Writing by Andre Romani; Editing by Lincoln Feast.)