Eletrobras share reserve with FGTS ends at 12 noon on Wednesday – Economy

Caixa informed this Monday (6th) that the term of the balance reserve to invest in Eletrobras shares with the FGTS (Service Time Guarantee Fund) until 12 noon on Wednesday (8), as well as changes or cancellations.

The membership started last Friday (3). The price of each share in the offer will be defined only on Thursday (9). On Friday, the state-owned company’s share was around R$42 on the Brazilian stock exchange, but the price may vary.

The minimum amount for the application is R$ 200.00, and the maximum, up to 50% of the balance available in the FGTS account. The purchase will be through the FMP-FGTS (Mutual Privatization Funds), as has already been done in the sales of Petrobras and Vale shares.


To make the reservation, the first step is to authorize the administrator chosen by the worker to consult the FGTS balance. This can already be done using the FGTS application, which also allows you to simulate an investment.

The worker must choose one of the administrators qualified in the offer, which are Caixa, Banco do Brasil, Bradesco, BTG Pactual, Daycoval, Genial Investimento, Itaú, Safra, Santander and XP Investimento.

Next, ask questions about how the investment using the FGTS works.


What is the minimum investment time?

The investment has a minimum period of 12 months, that is, whoever buys Eletrobras shares with the FGTS will have to wait a year to sell them. Even after this period, the money cannot be transferred to the employee’s current account. The balance will return to the FGTS account, subject to traditional rules, such as withdrawal in the event of dismissal and use in real estate financing, or in extraordinary withdrawals allowed by the federal government.


Is it possible to exit the investment before a year?

If the worker who used the FGTS is fired, he can move the money invested in the fund before the grace period. In addition to dismissal, the cases in which this is allowed are: retirement, death, use in the house, going for three years without a formal contract, serious illness, being 70 years of age or older or a situation of public calamity.


Have there been stock offerings in which the use of the FGTS has been released?

Yup. In the past, individuals were able to use the money to buy shares in Vale and Petrobras.


I have FGTS money invested in Vale and Petrobras. Can I change?

Yes, workers who have invested part of their balance in Vale or Petrobras shares in the past may migrate to Eletrobras shares, provided they respect a limit of 50% of the total. It is not possible, however, to use the balance resource and also make this migration to buy the shares.







Why is this offer being made?





The share offering is part of the privatization process of Eletrobras, which is currently a state-owned company. After the offer is made, the Union’s share in the electricity sector company will fall below 50%, which means that the federal government will no longer control the company.


Who can invest?

Both workers with an active and inactive FGTS account balance, as well as individuals who do not have funds in the fund, can buy the shares. In the case of the FGTS, the amounts that are blocked in the FGTS account will not be available for application, as a guarantee of credit operations with anticipation of the birthday withdrawal, for example.


What is the reserve period for Eletrobras shares?

The reserve period for the purchase of Eletrobras shares with the FGTS started on Friday (3) and runs until 12:00 on Wednesday (8).


What happens if the offer doesn’t work?

In accordance with the Offer Prospectus, the amounts deposited will be returned without remuneration, interest or monetary correction, without reimbursement of any costs and with deduction, if applicable, of amounts related to taxes.


What are the advantages?

According to analysts, it is an opportunity to reallocate the FGTS money, which yields very little, and put it in a long-term variable-income investment. The FGTS balance yields TR plus 3% per year, far below inflation, which has accumulated at 12.13% in the last 12 months, and several other investment products. If the person is not going to use the value of the FGTS to buy a property, for example, the option of investing in shares is interesting.

Since August 2000, one of Petrobras’ main privatization mutual funds has already appreciated 1,343%. In the same period, the FGTS accumulated an increase of 152.7%. The valuation of one of Vale’s main mutual funds since March 2002 was even higher: 2,666%. In the same period, the FGTS yielded 133.4%.


What are the risks?

Unlike the FGTS, in which the worker already knows how much income he will have per year, this certainty will not exist in the purchase of Eletrobras shares. Profitability depends on the appreciation of the securities in the market. But the profitability of these mutual funds was not always a good deal. In January 2016, for example, the shares of the two companies fell sharply. “Variable income is a long-term investment. Midway swings are common. For investors who do not want to take risks or think about using the FGTS in the short term, it might be good to rethink the idea of ​​investing in shares”, says Liao Yu Chieh, financial educator at C6 Bank.


How to check the balance?

The consultation of the balance of the fund available for application in the offer is already released in the FGTS application. Through the FGTS application, every worker who has an account linked to the FGTS, active or inactive, can simulate the balance available for investment in the company’s FMPs (Mutual Privatization Funds).


How to authorize the application?

The application of funds must be made by the worker in a brokerage or bank, among those qualified to operate with the FMP-FGTS. But first, the interested party must access the FGTS application and authorize the institution to consult the available balance of its linked account and to reserve the amounts.

In addition to the FGTS application, at Caixa branches, the person may consult the balance available for investment in FMP, simulate the application and authorize an institution managing the FMP-FGTS to reserve the amounts for investment in FMP.


What to do after authorization?

After authorization, the worker must contact the FMP-FGTS administrator (bank or broker) chosen to inform the amounts he wants to apply.


What are the qualified institutions?

It is possible to choose one of the administrators that have been qualified to operate with the FGTS in this offer: Caixa, Banco do Brasil, Bradesco, BTG Pactual, Daycoval, Genial Investimento, Itaú, Safra, Santander and XP Investimento.

From the choice of the FMP-FGTS administrator, all the worker’s relationship to effect the application will take place with the selected institution, which becomes responsible for the application of the values ​​of their FGTS accounts.


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