BTG Sees $1.1 Billion in Fund Withdrawals After Esteves's Arrest
- Ten fixed-income funds lose about one-third of net assets
- Esteves was jailed Wednesday as part of a corruption probe
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Grupo BTG Pactual SA’s clients took 4.2 billion reais ($1.1 billion) out of some of the bank’s most liquid fixed-income funds in the two days following the arrest of controlling shareholder Andre Esteves.
The withdrawals on Nov. 25 and 26, which can be seen in the latest available data on the securities regulator’s website, represent about a third of the combined net assets of the 10 fixed-income funds listed on the bank’s website. Net assets stood at 12.7 billion reais on Nov. 24, the day before the Brazilian billionaire was detained. BTG had 155.6 billion reais in assets under management at the end of October, according to the country’s capital market’s association.