Market Snapshot

Brazil

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Brazil

A majority of Brazilian investors expressed a high level of trust for the financial services industry. When eligible investors were asked if they believed the state-sponsored pension scheme will pay out benefits as promised, almost ¾ of Brazilian respondents said they think that it will. In addition, approximately 40% of investors are worried about an impending financial crisis within the next three years, down from approximately 50% in 2018.

There is quite a bit of confidence and trust in the system, so it is not surprising that approximately 80% of Brazilian investors believe they have a fair opportunity to profit by investing in capital markets.

Investors continue to value access to technology over people to manage investments but still overwhelmingly trust human advice over that of robo-advisers. Close to half said that they were willing to invest in a fund that used artificial intelligence for its selection process. This indicates that Brazilian investors value technology but not necessarily to give investment advice.

When looking to hire a firm, Brazilian investors prefer a trusted brand over people they can count on. When changing investment professional or firm, investors’ top considerations are the level of performance, data security, and then fees. Advisers would do well to provide more personalized products as almost all of the Brazilian investors surveyed want them and a majority would be willing to pay more for them.