Last updated: 02:46 / Thursday, 25 March 2021
M&G Optimal Income Advisory FIC FIM IE CP

XP Inc. Partners with M&G to Provide Flagship Flexible Bond Strategy to Brazilian Investors

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  • XP Inc. announces its partnership with M&G plc to offer Brazilian-based investors access to a flagship flexible bond strategy via a new XP local fund.
  •  M&G Optimal Income Advisory FIC FIM IE CP, is a Brazilian domiciled fund dedicated to investing into a globally diversified fixed income strategy offered by M&G Investments, which combines top-down macroeconomic approach with a rigorous bottom-up credit analysis
  • Brazilian investors will have access to the BRL-hedged fund

XP Inc., a leading, technology-driven financial services platform, announced its partnership with M&G plc., a leading international savings and investment company headquartered in London, to offer Brazilian-based investors access to a flagship flexible bond strategy via a new XP local fund.

XP has launched the M&G Optimal Income Advisory FIC FIM IE CP, a Brazilian domiciled fund dedicated to investing into a globally diversified fixed income strategy offered by M&G Investments, which combines top-down macroeconomic approach with a rigorous bottom-up credit analysis. Brazilian investors will have access to the BRL-hedged fund.

This partnership comes in an ideal moment as the all-time-low interest rate in Brazil (2% as of September 2020) has made global funds potentially attractive as an investment option for investors seeking to improve the risk/return ratio in their portfolios.

“We are excited to bring this flagship strategy from M&G on board. Focused on identifying the combination of assets that provide the most attractive income stream within the bond universe, the strategy not only presents new sources of potential returns, but is also meant to offer downside protection through the economic cycle”, says Fabiano Cintra, funds specialist at XP. “XP continues in its plan to connect Brazilians with the best investment opportunities in the world and M&G certainly stands out as a very well-known and well-recognized manager”, adds Cintra.

Ignacio Rodriguez Añino, Americas Chief Distribution Officer at M&G plc, comments: “We are very happy to have partnered with XP to make our investment capabilities available in Brazil. With local interest rates in record lows, international global funds give Brazilian investors the possibility to broaden their exposure to potential alternative sources of returns, while adding diversification to their portfolios. This strategy is a perfect fit for these two objectives, providing clients access to what we consider the best debt opportunities across the world with a strong focus on credit quality and risk management.”

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