Appraising home bias - Brazil

This paper examines the investment effects of home bias in the equity allocations of the Brazilian pension fund market:

  • Brazilian pension funds have had a particularly large home bias in their equity allocations compared to developed markets.
  • An examination of the characteristics, performance and return-to-risk profiles of the equity market in Brazil from 2008 through March 2021 shows that maintaining a home bias has been costly for Brazilian-based investors.
  • The analysis also highlights the effects the depreciating Brazilian real had on returns.

You can now read the full research report at the link below