SAO PAULO, Jan 16 (Reuters) - The Brazil-based asset management unit of Brazilian investment bank Grupo BTG Pactual SA has seen client funds fall by 30 percent since the bank’s founder was arrested in late November, the online news service of paper Valor Economico reported late on Friday.
BTG Pactual’s onshore funds saw 44.36 billion reais ($11 billon) of net withdrawals between Nov. 25 and Jan. 13, the paper said, citing a study by investment analysis firm Economatica. The fund with the most money withdrawn in that time, 4.6 billion reais, was the BTG Pactual Yield DI, the bank’s flagship short-term fixed-income fund.
Police arrested billionaire financier and BTG Pactual founder Andre Esteves on suspicion he sought to obstruct a sweeping probe of corruption at state-run oil company Petroleo Brasileiro SA.
Esteves was freed in December but remains under house arrest. Esteves’s lawyers deny the charges. BTG Pactual declined to comment on the Valor report.
$1 = 4.05 reais Reporting by Caroline Stauffer; Editing by Mark Potter