FGTS at Eletrobras: funds reduce management fee to attract investors

Workers who want to use part of the FGTS resources (Fundo de Garantia do Tempo de Serviço) to participate in the Eletrobras share offering – which will result in the privatization of the company, now controlled by the Federal Government – ​​must choose through which mutual participation fund (FMP) will make the investment.

The good news: The banks and brokerages that launched FMPs are reducing management fees charged to investors – some, more than once.

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

Survey carried out by InfoMoney with the Securities and Exchange Commission (CVM) and financial institutions indicates that, on Monday (31), rates varied between 0.20% per year and 1.50% per year. In three financial institutions the costs were 1% or more: Daycoval (1.50% per year), Safra (1.20% per year) and Guide (1% per year).

Since then, the scenario has changed. This Friday (3), funds were found that even zeroed the rate. The highest at the moment is the FMP of MAM Asset Management, whose regulation indicates a cost of 0.80% per year.

From the list of 23 FMPs accompanied by the InfoMoney throughout that week, 14 have rates of 0.20% a year or less.

Privatization funds are called “monoation”, which means they invest in the shares of a single company. The regulations for portfolios that have already been registered with the 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.

As they are “monoaction”, experts suggest that the management fee charged by financial institutions is one of the main items to evaluate when choosing. “The difference in profitability between them will be a consequence of the administration fee. Management makes no difference, only costs,” says Letícia Camargo, financial planner.

Check below the list of 23 funds available to invest the FGTS in Eletrobras shares, with the respective CNPJs, responsible managers and administration fees:

Background CNPJ manager Administration fee
Alfa II – Mutual Privatization Fund – FGTS Eletrobras – Migration 40,156,889/0001-15 Alfa Investment Bank 0.45% per year
BB Mutual Privatization Fund – FGTS Eletrobras 45,081,538/0001-06 BB DTVM 0.20% per year
BB Privatization Mutual Fund – FGTS Eletrobras – Migration 45,081,560/0001-56 BB DTVM 0.20% per year
BNB Mutual Privatization Fund – FGTS Eletrobras 42,847,915/0001-87 BNB 0.45% per year
Bradesco Mutual Privatization Fund – FGTS Eletrobras 44,360,670/0001-94 Bradesco Asset Management 0.40% per year
Bradesco Migração Mutual Privatization Fund – FGTS Eletrobras 44,544,074/0001-64 Bradesco Asset Management 0.40% per year
BTG Pactual reference FGTS Eletrobras Mutual Privatization Fund 45,560,774/0001-05 BTG Pactual Asset Management 0.20% per year
Mutual Fund for Privatization – FGTS for Migration Eletrobras 45,443,366/0001-73 DTVM box 0.45% per year
Mutual Fund for Privatization – FGTS Eletrobras 45.160.183/0001-40 DTVM box 0.45% per year
Daycoval Mutual Fund for Privatization of FGTS Eletrobras (FMP-FGTS) 45.121.022/0001-48 Daycoval Asset Management Zero
Great Mutual Privatization Fund – FGTS Eletrobras 45,598,817/0001-41 Plural Investments 0.20% per year
Genial Migration Mutual Privatization Fund FGTS Eletrobras 45,938,153/0001-12 Plural Investments 0.20% per year
Guide Mutual Fund for Privatization of FGTS Eletrobras (FMP-FGTS) 45,120,936/0001-94 Resource Management Guide 0.40% per year
Itaú Mutual Privatization Fund – FGTS Eletrobras 42,520,416/0001-80 Itaú Unibanco Asset Management 0.20% per year
Itaú Migração Mutual Privatization Fund – FGTS Eletrobras 42,582,153/0001-34 Itaú Unibanco Asset Management 0.20% per year
MAM Privatization Mutual Fund – FGTS Eletrobrás 43,926,530/0001-78 MAM ASSET MANAGEMENT 0.80% per year
Safra Mutual Privatization Fund – FGTS Eletrobras 44,934,934/0001-76 Safra Asset Management 0.15% per year
Harvest Mutual Privatization Fund – FGTS – Eletrobras – Migration 44,934,897/0001-04 Safra Asset Management 0.15% per year
Santander Mutual Privatization Fund – FGTS – Eletrobras – Migration 45,322,586/0001-49 Santander Brazil Resource Management 0.20% per year
Santander Mutual Privatization Fund – FGTS Eletrobras 45,322,541/0001-74 Santander Brazil Resource Management 0.20% per year
Warren Mutual Privatization Fund – FGTS Eletrobras 46,470,113/0001-51 Warren Brazil 0.50% per year
XP Mutual Privatization Fund – FGTS (Migration) Eletrobrás 45,088,755/0001-28 XP Allocation Asset Management 0.20% per year
XP Mutual Privatization Fund – FGTS Eletrobrás 45,088,790/0001-47 XP Allocation Asset Management 0.20% per year

Source: CVM and financial institutions

Eletrobras offer schedule

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

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

If the investor chooses to buy the shares directly, he will need to allocate a minimum of R$1 thousand 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 limit equivalent to 50% of the available balance in each linked FGTS account.

Read too:

• Privatized, Eletrobras (ELET3 ELET6) gains efficiency and investment capacity, say experts

According to the offering’s prospectus, an investment of at least BRL 5,000 was guaranteed for each retail investor, which can be increased according to demand.

There is, however, a maximum allocation value for FMPs, established at R$ 6 billion. If this amount is exceeded, a proportional apportionment will be made between reservation requests. In this case, the amounts deposited in excess will be returned without remuneration, interest or monetary correction, and with deduction of any taxes.

For investors who choose to transfer the amounts they have from other FMPs – such as those of Petrobras and Vale – to FMPs that will be created by Eletrobras, the deadline ends earlier. Orders can be placed between this Friday (3) and next Monday (6).

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