At least more than a thousand investment funds, including stocks, fixed income and real estate investments, could be affected by the crisis of American stocks.
According to a survey by Economatica, 1,093 funds (616 equities, 469 bonds and eight real estate) have American women in their portfolios. The numbers are based on data on the fund’s portfolio composition as of September, when this data was made available to the Securities and Exchange Commission (CVM).
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Therefore, it’s possible that the funds have since bought or sold stock or bonds in the Americanas and may be more or less affected.
In the case of bonds, only those listed by the Brazilian Association of Financial and Capital Market Entities (Anbima) are considered in the survey. In this way, the number of funds can be greater.
What are the funds?
Investment funds function like baskets of assets. They are managed by a manager, who typically charges an administration fee, and can invest shareholder money in a variety of assets, depending on the type of fund and its risk profile.
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Funds may be exposed to the dealer because they own shares of Americanas, company-issued debt, or have assets, such as real estate, used by the dealer.
How do funds lose money?
Funds lose money by devaluing the Americanas assets they hold.
In the case of equity funds, for example, they may own Americanas shares, which have plummeted in the stock market after the dealer’s announcement of inconsistencies.
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Fixed income funds have bonds, which are debt securities issued by Americanas. They work as a kind of capital loan for a business. In return, the company undertakes to pay the shareholder an amount with additional compensation in the form of interest.
The conditions are defined when the product is issued.
Before the crisis, these assets were considered low risk. However, since the “accounting inconsistencies” announcement, Americanas has been downgraded by several risk agencies.
Real estate funds (FIIs), in turn, may have among their assets shops, logistics warehouses, offices leased by Americanas, among others.
How much is the impact?
The magnitude of the impact will depend on the extent of the fund’s exposure to the retailer. It’s worth mentioning that they have other portfolio assets, which can mitigate the decline, and there are those that are closed to a few shareholders or a specific type of investor.
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How can the investor know if he has been affected?
Empiricus Gestão fixed income manager Rodrigo Knudsen explains that the fund is not required to report when sudden drops occur, but points out that it would be good practice. He specifies that, in the event of very anomalous fluctuations, the fund administrator informs all the shareholders.
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According to Knudsen, one way for investors to see if they’ve been impacted is to compare the fund’s performance with the market as a whole. When Americans fell 77.33% last Thursday, Ibovespa was down just 0.59%.
—Must look at the elevation and analyze if there is a non-standard movement. You can see the performance of the funds the day after the announcement. The stock is down slightly and American stocks are down nearly 80%. Funds that took this action fell 6% on a day when the stock market fell little. Investors can see this by looking at the daily quote of the fund through the platform where they apply and comparing it with the market.
different risks
Ativa Investimentos real estate investment fund analyst Gabriel Teixeira points out that the risks to FIIs are different from other types of funds. He points out that hardest hit in this class have been logistics funds that have some type of exposure to Americanas as a tenant.
— Funds that have a percentage of revenue that depends more on the tenant of Lojas Americanas end up suffering the most. These are the two main cases: MAXR11, which has more than 30% of its revenues coming from the tenant Lojas Americanas, and GGRC11, which has some revenue exposure to Americanas and is concluding a warehouse purchase transaction to increase exposure to the dealer.
According to the analyst, the losses occur due to market uncertainties regarding the company’s future. But the fund can find another tenant if there is an exit from the real estate.
— Has greater flexibility than a shareholder who holds direct shares in Americanas or a creditor who holds debt.
What can the investor do?
Knudsen, of Empiricus, points out that investors who feel offended can try meeting with other shareholders to call for an extraordinary meeting. However, he argues that this only occurs in cases where the executive is not following the mandate as they should.
“Like putting a very large equity position in a company when it said it was going to be diversified. But that would be in extreme cases and it’s a complicated process — exemplify.
The manager believes that in the case of Americanas, the company reported incorrect financial statement information
See the most exposed funds in each asset class, according to the Economatica survey:
Equity funds with greater exposure:
Colorado FIA Ie
Beau Soleil FIA Ie
Beta FI Mult Ie Cred Priv
3rd FI Mult Cred Priv Ie
Moat Capital B Prev Fife FIA Master
Capital moat FIA Master
Moat Mult Mon Prev FIA Masters
Fossato Prev Itau Master FIA
Ditch Previous FIA
Sant Pb Stoic Acoes FI – Bdr Level I
Funds purchased in bonds with higher exposure:
Green Am Carry Master FI Mult Cred Priv
Olian FI Mult Cred Priv Ie
Previ Gm Cred Estrut I FI Mult Cred Priv
Nu Yield FI RF Cred Priv
Sabesprev Win Cred Priv FI Mult
Mont Blanc FI RF Cred Priv
Wa Prev Credit RF FI Cred Priv
Source Boa FI Mult Cred Priv
Alba Cash Enhanced FI RF Cred Priv
Hardest hit real estate funds:
Bresco Logistica Fund of Inve-Unica – BRCO11
Max Retail FII – MAXR11
Xp FII Registry – XPLG11
Vinci Urban Real Estate – VIUR11
Vbi Logistic FI Imobiliario-Unica – LVBI11
Property FII Rbr – FII-Unica – RBRP11
Rbr Register FI-Unica – RBRL11
Ggr Covepi Renda FII – GGRC11
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