Brazil funds need to adapt to 'new reality' of low rates-official

SAO PAULO Tue May 14, 2013 8:47am EDT

SAO PAULO May 14 (Reuters) - Brazilian asset managers have to adapt their strategies to a set of new conditions governing the local economy, such as low interest rates and a declining government debt burden, central bank director Aldo Mendes said on Tuesday.

Fund managers in Brazil - who for years took advantage of the nation's high borrowing costs, paid for by the government, to make profits - need to embrace "a cultural change" that encompasses investing in assets other than government bonds to generate returns, Mendes said at an industry event in São Paulo.

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