FGTS in Eletrobras: Funds cut management fees to attract investors

Workers who wish to use part of the resources of the FGTS (Fundo de Garantia do Tempo de Serviço) to participate in the Eletrobras Participation Offer – which will result in the privatization of the company, now controlled by the federal government – must choose from which the Fund for Mutual Participation (FMP) will He is investing.

The good news: Banks and brokerages that have launched loan management schemes are cutting management fees charged to investors — some more than once.

Turn your FGTS into an investment: Use up to 50% of FGTS to invest in Eletrobras, the largest energy company in Latin America.

The survey was conducted by Infomoney With the Securities and Exchange Commission (CVM) and financial institutions reporting that, on Monday (31), prices varied between 0.20% per year and 1.50% per year. In three financial institutions, costs were 1% or more: Daycoval (1.50% per year), Zero (1.20% per year), Proof (1% per year).

Since then, the scenario has changed. On Friday (3), funds were found so that it is zero rate. The highest level at the moment is the FMP of MAM Asset Management, the regulation of which indicates a cost of 0.80% per annum.

From the list of 23 FMP accompanied by Infomoney During that week, 14 has rates of 0.20% per year or less.

Privatization funds are called “monoation”, which means that they invest in the shares of one company. Regulations for portfolios already registered with CVM indicate that they must invest at least 90% of their equity in Eletrobras securities. The remaining 10% can be allocated to fixed income securities.

Since it is a “one off business,” experts suggest that management fees charged by financial institutions are one of the key elements to evaluate when choosing. “The difference in profitability between them will be a result of the management fees. The management makes no difference, only the costs,” says Leticia Camargo, a financial planner.

Check below the list of 23 funds available for FGTS investing in Eletrobras shares, with their respective CNPJs, responsible directors and management fees:

Source: CVM and financial institutions

Eletrobras display schedule

The reserve period for Eletrobras shares began on Friday (3). Individual investors interested in participating in the company’s privatization process will be able to submit their applications until next Wednesday (8).

The term is valid for both investors who wish to acquire shares of Eletrobras, directly or indirectly, using part of the FGTS. The bid should move about R$30 billion, in total, and the price is due next Thursday (9).

If the investor chooses to buy the shares directly, he will need to allocate a minimum of R$1,000 and a maximum of R$1 million.

Whoever uses a part of the FGTS to invest in Eletrobras shares will have to invest at least R$200 and will need to respect the maximum investment amounting to 50% of the available balance in each linked FGTS account.

Read also:

• Experts say privatized Eletrobras (ELET3 ELET6), gaining efficiency and investment capacity

According to the prospectus, an investment of at least R$ 5,000 is guaranteed to each retail investor, which can be increased according to demand.

However, there is a cap on the allocation value for initial production plans, which has been set at R$6 billion. If this amount is exceeded, a proportional division will be made between booking requests. In this case, the excess deposited amounts will be returned without compensation, interest or monetary correction, with any taxes deducted.

For investors who choose to transfer funds they have from other small production plans – such as those of Petrobras and Vale – to FMPs that will be created by Eletrobras, the deadline ends earlier. Applications can be submitted between Friday (3) and the following Monday (6).

Turn your FGTS into an investment: Use up to 50% of FGTS to invest in Eletrobras, the largest energy company in Latin America.

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