Purchase of Eletrobras shares with FGTS funds: see step by step | Economy

Workers who have funds in the Severance Indemnity Fund (FGTS) will be able to use part of their balance to buy Eletrobras shares in the company’s privatization process. The stock reservation period begins this Friday (3) and runs until June 8.

Interested in the purchase can contribute of R$ 200, minimum amount, up to a maximum of 50% of the balance of the FGTS. The purchase will be made by the so-called “privatization mutual funds”a device created in the 2000s and already used by the government in the sale of papers from other state-owned companies, such as Vale and Petrobras.

The privatization of Eletrobras was approved on May 18 by the Federal Audit Court (TCU). In the process, a ceiling of BRL 6 billion for the global use of the resources of the FGTS in the purchase of shares in the public offering. If applications exceed this ceiling, an apportionment will be made.

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To reserve an application in the Mutual Privatization Fund, you must access the FGTS or Caixa app.

See how to do it through the Caixa app:

  • In the application, you need to authorize the sharing of data from your FGTS accounts. Thus, the institution will identify the maximum investment amount you can make.
  • On the main screen, you need to click on the “FGTS” option.
  • Then click on the “Authorize FGTS financial agent” option.
  • Finally, choose the option “Privatization Mutual Funds” and click on consult.
  • On the page that will open, you need to select Caixa Econômica Federal as a financial institution and click on continue.
  • Then you will read and accept the terms and click continue again.
  • After that, just enter your electronic signature and you’re ready to book.

Now, see the steps through the FGTS app:

  • In this app, you need to click on the “More” menu. And then in the option “application simulator in the FMP-FGTS”.
  • Then, you need to authorize the FMP-Eletrobras fund to consult your FGTS accounts and reserve the amounts for investment.
  • Afterwards, you will read and accept the terms.
  • On the next page, it’s time to select an administrator. Participation in privatization mutual funds may occur individually or through the Investment Club (CI-FGTS) managed by an institution authorized by the Securities and Exchange Commission (CVM).

Now that you are released, you actually need to book the purchase. Come on:

  • In the Caixa app, choose the “investments” option.
  • On the next screen, click on “FMP Reservation”.
  • Then select the option “FGTS Resources”.
  • On the next screen, all available FGTS accounts and the maximum resource that can be applied to each of them will appear. Click continue.
  • Then you need to enable the account (or accounts) you want to use for this application and click continue.
  • Then just enter the amount you want to invest and click “Next”.
  • You will then read and agree to the membership terms and click “Continue”.
  • After that, just insert your electronic signature and the reservation will be made.

Caixa also informed that “only after 12 months have elapsed from the date of application can there be retraction with a consequent return on investment to the FGTS”. For this to occur, the request will be made by the holder of the account linked to the administrator of the FMP-FGTS or CI-FGTS.

The investment in FMP quotas may be up to 50% of the balance of each linked account, valid for operations within the scope of the National Privatization Program and/or similar state programs approved by the Investment Partnership Program Council (CPPI).

However, within the limit of 50%, all investments that the worker has in FMP-FGTS will be taken into account. In other words, if the investor has part of his FGTS still invested in Petrobras and Vale shares, this amount must be deducted to find out how much can now be allocated to Eletrobras shares.

“The limitation of 50% of the total balance of the linked account must be observed for each application, based on the balance of the linked account and considering previous uses in the FMP-FGTS”, says Caixa in the document.

For the use of the FGTS in the acquisition of a home that is ready or under construction, in the payment of part of the installments and in the amortization or extraordinary settlement of the outstanding balance of financing from the Housing Finance System (SFH), the return of the amounts invested in FMP-FGTS may be total or partial.

Financial institutions that manage privatization mutual funds, in turn, must offer workers: consultation of the worker’s balance available for investment in FMP; registration of the FMP Application Worker Request; Operation Regularization record; and Blocking of Values ​​of the Linked Accounts information.

Privatization funds can be an alternative for workers looking to improve the performance of their resources. However, there is no guarantee that this will happen. By law, the FGTS has a yield of 3% per year.

In recent years, however, workers have also received part of the Guarantee Fund’s profits, which result from interest charged on loans for infrastructure, sanitation and home ownership projects. The distribution improved the return on funds deposited in the fund.

In 2020, with the distribution to workers of the FGTS profit, the income was 4.52%. In 2019, considering the additional profit distribution, the yield was 4.90%. In 2018, it reached 6.18%.

According to an analysis by XP, it paid off to have invested in portfolio diversification with FGTS funds in previous operations (Petrobras and Vale do Rio Doce).

“Investors who left their funds invested only in the FGTS had a return of 136.09% [2002 a 2022]. For the investor who invested in a simulated FMP of Vale da Rio Doce, one of the options offered on the market, the return was 2,235.13%. For the investor who put resources in the simulated Petrobras fund, another option offered to the market, it had a return of 649.36% in the same period”, informed the brokerage.