Open funds for US GV investors

Hi,

I’m currently looking to invest in open funds. My definition of an open fund is a fund that is traded in stock market and we can exit when we need (of course you will abandon GV if you do so).

I spoke to BPI Portugal FIAA fund. Looks like some non US investors have done GV using the fund. But they don’t support FATCA or PFIC.

I’m eyeing “IMGA Ações Portugal A” next from Bison bank. Has anyone from US got approved for GV process using any open fund? Please share your experiences here

I have just invested through the BPI FIAA fund route for pre-approval. It definitely is a no brainer compared to IMGA given lower management fee (1%) and no subscription fee.
Sorry to hear about the FATCA non-compliance.

As far as approvals go, the SEF mostly relies on the letter provided by a “competent” authority to say that the fund is eligible of PGV. In this case, a letter from the bank generally goes a long way.

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Hi Ravi,

Here’s the BPI Fund: BPI Portugal - Fundo de Investimento Aberto de Ações, PTYPIGLM0000:EUR summary - FT.com

I’m in the process of investing through this

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Would you have any contact number or email address to initiate the account opening with BPI bank and invest in this fund?

Thanks

Hi Aditya, I would be glad if could you share the contact number or email address to initiate the account opening with BPI bank and investing in this fund?

Thanks

Will PM you shortly.

How is your approval coming along? A fund manager said there were recent changes in regulations and investing in open-ended funds were not approved because management could close anytime. Is there truth in this statement?
Also, can you also share the contact details for the bank? Thank you!

If anything, I would be worried about losing management in a private fund!
BPI FIAA has been up and running since 1994, and IMGA since 1995, so I would not be worried about it.
I have not seen any changes to the rules that impacts the investment in (retail) investment funds.

The only thing you need to be scrutinising is the volatility in these funds (as they track PSI20 index and its composition). They are mainly constituted by manufacturing, logistics and utility companies, which IMHO are still underweight on valuation (vs. underlying performance), especially as these countries recover from COVID.

Have PM-ed you the details of the RM I worked with to invest.

I think the point is that the fund may choose to close up shop at any time, not that you might lose the management. An open-ended fund likely has no definitive term, whereas the average private fund at least in .pt has a defined lifetime, generally 10 years.