BTG Funds' Net Withdrawals Slow to Least Since Esteves's Arrest

  • The 10 fixed-income funds have shed 62% of combined net assets
  • Clients invested in those funds have dropped 42% since arrest

Clients pulled money from some of Grupo BTG Pactual SA’s fixed-income funds at the slowest pace since last month’s jailing of the firm’s billionaire founder, Andre Esteves.

Net withdrawals from the 10 fixed-income funds listed on the bank’s website slowed to 113.3 million reais ($30.2 million) Tuesday, according to the latest available data compiled by Bloomberg. Still, customers have removed a net 7.8 billion reais from the funds since Esteves was detained on Nov. 25, equivalent to 62 percent of their net assets.

The 10 funds also have seen the number of clients decline by 42 percent over the past two weeks, the data show. BTG declined to comment on withdrawals.

The bank said Dec. 4 that it secured a 6 billion-real line of credit from Brazil’s privately backed deposit-guarantee fund, Fundo Garantidor de Creditos.

Esteves is accused of trying to interfere with testimony from a former Petroleo Brasileiro SA executive in the so-called Carwash case, the largest-ever corruption probe in Brazil. Esteves, who has denied wrongdoing through his lawyer, resigned his posts at the bank on Nov. 29 after his arrest was extended for an indefinite amount of time.

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