Yes, I was trying to get my head around BPI’s approach, for example. BPI Portugal seems to have direct holdings in equities totalling about 69% of assets, plus cash of 31%. But that cash is backing a position in PSI-20 futures which adds another 29% of exposure. So the fund is fully invested, but partly through the futures position. I think the reason they’re doing this is because of European UCITS rules, which limit an individual position to 10%. Thus they have 9% of the fund in Jeronimo, but there’s an additional 4% or so in Jeronimo from the PSI future.
I think all-in, relative to the index, they’re underweight EDP Ren and EDP (looks like the fund has 16% in those two, the index 24%), and overweight Sonae, CTT, Cortiseira and some others. So there’s some active management going on.
There are about 45 listed companies that trade, but only half have a market cap of more than EUR 100m, and 12 over EUR 1bn. It’s a pretty small pond. Portugal’s GDP is roughly equivalent to that of South Carolina or Alabama.
There seems to be a lot of uncertainty of open-ended funds such as IMGA or BPI and whether they would actually qualify for the GV applications. Does anyone have experience actually getting an approval with these funds? My lawyer says this is risky but if anyone can share a precedent it would be very helpful! Thank you.
Great! Thank you for sharing this! I am curious if you know whether the value of the fund is taken based on the initial investment or at the market value - what if 350 000 invested goes down to 349 000, will this mean that the amount invested no longer satisfies the requirement?
Its always your initial investment. So if you invest EUR350k and after 2 years (lets say) it goes down to EUR300k due to market movements, you will continue to qualify to renew your PGV without the need to recapitalise your account.
What I am unsure of is, if your EUR350k investment increases to EUR400k, if you can take out EUR50k and still remain eligible. No plans on my end to do so, but just curious .
Thank you very much to everyone for sharing your experience with the IMGA fund!
I’m wondering what banks did you use? A few people here commented on using Bison Bank but for us unfortunately it’s a no go for a certain specific reason. Does anyone has experience buying this fund through other banks? How is the process like? Thank you!!
Quick update - just spoke with Rock Capital. They just closed their subscription about 2 weeks ago due to “overwhelming interest from the investors”. This was one of our top choices and was quite disappointing. Could someone please update the spreadsheet?
Hello - quick update. I’ve submitted all my paperwork exactly 10 weeks ago (invested on Greytech II). I’ve received a message this week from the lawyers that my documentation was pre-approved, investment is according to the rules, etc. Next step will be to go to Portugal for the fingerprinting, etc.
So everything moving according to plan. According to the lawyers, the schedules were open for bookings in Oct and Nov. They may open again soon for bookings in Dec. Limited spots, apparently.
Nevertheless, no complaints: Bison Bank was very helpful, the team at Iberis (Greytech II) as well, and the lawyers made sure that all documents were ready and according to the GV rules. So far, so good.
tkrunning
(Thomas K. Running)
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