B – Index Morningstar Brasil Momento Fundo

What it is

BMMT11 is a Brazilian equity ETF built around a momentum strategy — Brazil’s first of its kind — tracking the Morningstar Brazil Target Momentum Index. It is what practitioners call “Smart Beta”: a rules-based approach that blends factors such as size, value, quality and momentum, rather than simply buying the biggest companies.

The index identifies the 30 Brazilian listed companies with the highest “momentum score” (the WAFFR score), calculated largely from how close the current price is to the stock’s 12-month high. Each sector is capped at 7.5% of the portfolio, and the 30 winners are held in equal weight — every stock gets exactly the same slice of the fund.

The portfolio is refreshed quarterly, in March, June, September and December. ETFs in Brazil are not permitted to pay out dividends; any income from underlying stocks is reinvested, lifting the unit value rather than paying cash.

Who owns it

The fund’s manager, custodian and administrator is all one institution: Banco Bradesco S.A., acting through its asset-management arm BRAM (Bradesco Asset Management S.A. DTVM). BMMT11 has no separate controlling shareholder structure of its own; investors who buy units on B3 own a proportional share of the underlying stock basket, held in trust by Bradesco.

BRAM crossed the landmark of R$ 1 trillion (about US$ 192 billion) in total assets under management in 2025, placing it among the top three asset managers in Brazil. BMMT11 is a small, specialist product within that giant platform, with its own AUM of roughly R$ 45.5 million (about US$ 8.7 million) — a niche fund for a focused strategy.

Who runs it

Bruno Funchal, former Secretary of the National Treasury, is the CEO of Bradesco Asset Management and the executive ultimately responsible for all BRAM funds, including BMMT11. Funchal has led BRAM since May 2022.

Under Funchal, BRAM won a “triple crown” of industry awards: best fund manager in Brazil for 2024, best private-pension manager (December 2023), and best bank for fund investment (February 2024), all awarded by the FGV foundation. A dedicated fund manager for BMMT11 is not publicly named in available sources.

The money, in plain words

Because BMMT11 is a passive fund, not an operating company, there is no revenue or net profit to report — the only financial size that matters is how much money it holds. Assets under management stand at roughly R$ 45.5 million (about US$ 8.7 million), making this a small but fully regulated, exchange-listed instrument.

The annual running cost charged to investors — the expense ratio — is 0.30% per year, while the official annual management fee is 0.40% per year.

The unit price has recently traded around R$ 155, (US$30)and over the past 52 weeks the price has ranged from R$ 150.98 (US$29)to R$ 172.45. (US$33)The portfolio’s weighted average price-to-earnings ratio — what the market collectively pays per real of underlying profit — stands at 9.70×, low by global standards and consistent with Brazil’s currently high interest-rate environment, which compresses equity valuations.

What it is doing now

BRAM has been recommending increased exposure to equities since 2025, a view that directly supports BMMT11’s rationale. With Brazilian interest rates (the Selic) projected to fall toward 12% by end-2026 from a peak of 15%, and the Ibovespa having gained 35% over the past twelve months, investor interest in equity funds is rising.

BRAM itself is investing in technology and artificial intelligence to scale personalised portfolio construction, a broader platform push that may benefit index-fund distribution. The fund’s 12-month unit-price return of roughly 22% has outpaced Brazil’s main benchmark, though — as with any momentum strategy — that performance is entirely hostage to market conditions in the next quarter.

What to watch

• Interest-rate trajectory. Falling Brazilian rates typically lift equity valuations; rising rates do the opposite, and BMMT11’s entire portfolio moves with the broad market.
• Quarterly rebalancing. Critics note that quarterly rebalancing means the portfolio can fall behind the most recent momentum signals — a genuine structural lag for a strategy that depends on catching trends early.
• AUM growth. At R$ 45.5 million (US$9 mn), the fund is small; thin secondary-market liquidity can mean wider gaps between the price you buy at and the true value of the underlying stocks.
• BRAM integration. Bradesco Asset is being incorporated as a department of Banco Bradesco S.A. — a structural change that may affect governance and product strategy at the parent level.

This is news, not investment advice.