It is a patrimony that belongs to several people, destined to invest in certain assets, aiming at a determined objective in which investors (clients) trust professionals (management companies), the responsibility to decide where to invest the fund's resources, according to a pre-defined investment strategy.
First you have to be a BAI customer. The admission is made through a subscription by filling in the “Subscription Bulletin” addressed to the management entity, available at the branches of BAI's commercial network.
Participation units (UP) are the portions in which the assets of an investment fund are divided.
The value of the participation unit is calculated by the respective management entity according to pre-established rules:
- It corresponds to the division of the global value of the fund by the number of participation units held by investors;
- The value of the participation unit serves as a basis for subscriptions and redemptions and allows to monitor the evolution of the fund, namely regarding its return and risk.
BAIGEST investment funds do not normally guarantee profitability for their investors. It have only indicative rates of return.
- It allows participation in assets (securities and real estate), by small and medium investors that would not otherwise be possible;
- Professional management - dedicated professionals, with vast knowledge in the area and with access to the best analysis and control tools;
- Tax efficiency - it has an advantageous tax regime compared to other types of vehicles or, in some cases, direct investment in assets;
- Diversification - possibility to invest in different markets, sectors and companies, making investment less sensitive;
- Transparency - audited by external entities recognized and supervised by the CMC (Capital Market Commission), which guarantees the quality of the information provided;
- Governance - the existing regulation requires compliance with the transparency and governance requirements, offering greater security to investors.
Investment funds are autonomous assets, so the assets are saved and can only be sold for the benefit of investors.
The management company defines how to invest in accordance with the policy contained in the fund's prospectus. And when investors subscribe to the fund, they accept its policy.
When investing in funds, investors take identical risks, albeit smaller, than they would if they opted for direct investment in the assets that make up the funds' patrimony, since that risk is “diluted” in the various types of assets. Usually, greater risk is associated with a higher profitability potential.
In general, the most relevant risks are:
- Yield Risk: associated with the change in the value of the assets that make up the fund's portfolio, which causes the value of the participation unit to vary;
- Credit Risk: associated with the possibility of default from bond issuers, or with falling prices due to the effect of the deterioration of credit quality;
- Interest rate risk: associated with the variation in interest rates (the rise in interest rates devalues the bond price and the value of the participation unit, however, having a positive effect on the remuneration of the reinvestment of the coupon; interest rates value bonds and participation units);
- Operational Risk: associated with losses resulting from human error, system failures or incorrect valuation of assets;
- Exchange rate risk: associated with the loss of value of investments in foreign currency, due to exchange rate depreciation;
- Tax Risk: related to adverse changes in the tax regime, which may decrease the potential return on fund assets.
The investment amount (daily value of the Units) will be available on Banco BAI platforms, and you can also consult this information at Banco BAI and BAIGEST - the managing company - branches.
The fund will be managed by a team of professionals who will look for investment opportunities in the primary and secondary capital markets, in order to maximize your return. Given the development of the Angolan secondary market and due to the fact that the amount under management is high, the investment fund's negotiable power with the financial intermediary is superior to the individual investor, which can generate higher returns and provide an attractive return for the investor.