Miami - XP International has announced a move to try to change the scale of dollarization for its retail investors. Through technological integration with Allfunds, one of the world's largest investment fund platforms, the firm is connecting its network to a menu of more than 5,000 funds and 1,400 global asset managers.

For XP, the move is not just strategic, it's mathematical. Today, with approximately US$15 billion under custody across its international platforms, the company's guiding principle is its in-house asset allocation recommendation. CIO Arthur Wichmann has been suggesting diversification with 15% international exposure in the portfolio.

“We don’t believe that, overnight, we’ll have 50% of our custody outside of Brazil. But, as a ‘hint’ of guidance , this minimum allocation of 15% offshore that Arthur is indicating is what we intend for this first move,” says José Tibães, partner at XP.

With R$1.9 trillion in total assets under management, if the network follows this path, it will represent approximately R$285 billion (just over US$40 billion at the current exchange rate) of clients' assets abroad.

Although being plugged into Allfunds means having access to the leading global fund managers, Fabiano Cintra, head of international funds at XP, says there will be a curation process. "We don't want to have 700 funds just for the sake of having them. We want the real money-makers selected under technical scrutiny," says Cintra.

Initially, the new platform will feature 10 firms recognized for their track record . Among them will be Oaktree Capital , owned by Howard Marks , with its Oaktree Global Credit fund, which focuses on high-quality credit and requires an initial investment of US$1,000.

The Oaktree Global Credit fund operates with an extremely diversified portfolio, encompassing over 900 issuers, which mitigates the risk of isolated credit events.

With a liquidity of five business days, the strategy combines a long-term "carry book" with a tactical portion to capture market distortions.

In 2025, the fund surpassed its target of a +7% dollar return, maintaining a double-digit annualized performance over the three-year window.

In XP's selection process, which Cintra emphasizes goes beyond the screens of terminals, there is due diligence through in-person visits to centers like London and New York to ensure the commitment of asset managers to the Brazilian investor before any listing.

One example is the exclusive mandate signed with Wellington Asset Management , which manages over US$1.3 trillion. In addition to exclusive products like Wellington Global Quality Growth – which has delivered returns in the range of +10% in dollars over the last ten years – XP will be the only company in Brazil to offer the US asset manager's Credit Total Return mandate.

"We are uniting the world of manufacturing, which is global management, with that of allocators who manage more than R$ 300 billion in the XP ecosystem," says Tibães.

Illiquid and alternative as well

The integration with Allfunds is the first deliverable in a year with an intense schedule for internationalizing the portfolio. Still in the first half of the year, the focus will be on the full expansion of ETFs, one of the most requested products by the network, according to executives.

For the second half of the year, the agenda focuses on integrating alternative and illiquid assets. With this, XP believes it will be able to offer all types of asset classes, with varying risk and return profiles.

"Doing this gradually has both an educational and financial effect, as it allows the customer to consume at an average dollar price at different points in the economic cycle," says Cintra.

For investors seeking to internationalize their assets but preferring to delegate asset selection, XP Asset is transferring its asset allocation expertise from the private banking segment to the retail market.

Also in March, the platform should scale its managed portfolios, which use "in-house" funds (such as global allocation and Latam bonds) to dynamically reflect the global macroeconomic scenario.

* The journalist traveled at the invitation of XP.