Which Funds won the battle over the CDI?

Which investment funds won the battle over the CDI in Brazil?

Historically, the Brazilian economy has had a high interest rate (base rate), currently at 13.75%, for various reasons. Among them we can highlight the monetary policy, which requires "high doses of interest" to control inflation, the parity of the real against other currencies and the elevated spreads typical of bank concentration. In addition, there are other highly complex factors such as the level of economic activity, competitiveness, among others, also influence the base rate and, consequently, investments.

This scenario presents a good alternative for the most risk-averse investors, who tend to invest their resources in fixed-income securities with guaranteed and advantageous returns compared to other alternatives. On the other hand, it represents a great challenge for fund managers in Brazil, which, in addition to daily quotas, have the CDI as a competitor, which is one of the main market performance indicators.

Economatica decided to look at the? largest existing funds and analyze their performance against the CDI in different periods. It is worth mentioning that the funds have benchmarks that are more aligned with their strategies and risk levels, but, for the purposes of this study, the CDI was considered the general reference. The sample considered funds with more than 10 years of history, which operate fixed income, pension, monetary and multi-asset classes, that are not classified for exposure to private credit, with a current net worth of more than 500 million reais and which had more than 10 investors.

Within the 10-year period, the Kapitalo Master II FIM fund, a multi-asset fund with assets of 18 billion reais, was the fund with the highest average annual rate of return in the period, with 18.86% per year.

Next, we have the WA US Index, managed by Western Asset Management, with an average annual return of 18.31%, and the Bahia AM Marau Master, with an average annual return of 17.50%.

Still within the Top 20, we have names of large fund managers such as Ibiuna Hedge with 16.6%, Kapitalo Zeta with 15.5%, Opportunity Total with 14.27%, Spx Nimitz with 14.2%, Verde Master with 13.65%, JGP Strategy with 13.35% and Dynamo Cougar with 13.19% average annual return over the last 10 years.

Within the 5-year period, the standout was Dybra FIC FIA, managed by Dynamo, with an average annual return of 18.74%. We also mention GAP, with two funds in the Top 20: Gap Absoluto and Gap Multi Sele??o, both multi-asset funds. And we find large expert fixed income managers such as Caixa DTVM and BB Gest?o de Recursos, both with fixed income funds in the ranking.

Finally, in the shortest period of the study, we identified the funds with the best average annual return over the last 3 years. The multi-asset fund Apoena Macro, from Gavea Investimentos, had the best performance with an annual average of 21.83%, followed by WA US Index, Ibiuna Hedge, Opportunity Total Master, Kapitalo Master, Gavea Macro and Bahia Marau, all with a average return of more than 10% per year in the last 3 years.

In addition to the excellent performance displayed by the aforementioned funds, the great challenge proposed in this study, in addition to perseverance, is to overperform the main and most constant benchmark of the entire Brazilian economy: the feared and beloved CDI.

If we consider the medians by performance class, the variable income funds (although the most correct reference index considering the levels of risk assumed is ideally a stock index) had an average return of 114.6% over the CDI in the period of 10 years. Multi-asset, pension and monetary funds performed between 27% and 39% above the benchmark. Finally, we have fixed income funds that stayed very close to the CDI in the three periods observed. In shorter time windows such as 3 and 5 years, the multi-asset funds were the ones that presented the greatest consistency, exceeding the benchmark by 3.6% and 10.3% in the respective periods.

But, after all, who really beat the CDI???

Over the 10-year period, the manager's Kapitalo Master II returned more than 322% above the benchmark.

In the 5-year period, Dybra FIC FIA, from the Dynamo manager, reached 95.15% above the performance of the CDI, followed by Ibiuna Hedge St Master and Apoena Macro, both with 70% above the index.

In the 3-year period, Apoena Macro, from Gavea Investimentos, yielded 54.64% above the yield of the CDI.

Based on this, it is possible to observe that, in the long term, although the CDI is a challenging benchmark for any manager, there are excellent managers in the market with skilled and creative professionals to seek opportunities, protect against market volatility and yet still offer very competitive returns? for? their investors.

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