Characteristic Investment via FII Direct investment in real estate Tax No tax is payable on the income received by an individual investor from a FII1. Individuals pay income tax (IRPF) on income from rented property they own at up to 27.5% depending on the vehicle. Liquidity Fund units are traded in the secondary market, which is managed by BM&FBOVESPA. Selling depends on several variables and may take a long time to close. Affordability Investors in FIIs participate in the income from property developments without needing to disburse the substantial amount required to acquire a share in the property itself. Direct purchase or investment in partnership with other relatively wealthy individuals, of whom there are few by definition. Simplicity Fund units are bought via a brokerage house, subject to the liquidity of each fund. Brokers may charge commissions. Online trading is available via the "Home Broker" platform. Investors in real estate must concern themselves with title deeds, certificates, property transfer tax, leasing, vacancy, rent collection, renovation etc. Management FIIs have professionals who specialize in real estate and will recommend ways to optimize returns. Owners of real estate typically lack the time to manage their properties on a day-to-day basis or find ways of improving profitability.
Notes: 1. The law exempts individual investors from withholding tax on income distributed by the Fund and annual income tax based on their taxpayers annual return provided (i) the investor holds fund units representing less than ten per cent (10%) of the total number of units issued by the Fund and entitling the investor to receive less than ten per cent (10%) of the total income earned by the Fund, (ii) fund units are admitted for trading only on exchanges or the organized over-the-counter market, and (iii) the Fund has at least fifty (50) unit holders. The fund administrator cannot guarantee or effectively control compliance with (i) and (ii). As for (iii), the administrator keeps all fund units registered for trading in the secondary market solely on BM&FBOVESPA.
Disclaimer: Past performance does not guarantee future results. Please read the prospects and bylaws before investing. Investment fund performance should be evaluated on the basis of returns over a period of at least 12 months. This material does not constitute an offer of or invitation to buy investment fund shares or of any other security. This material may not be reproduced or distributed in whole or in part to any other person. Plural does not sell or distribute investment funds or any other financial products. The information contained in this material is provided for information purposes only. Plural's investment funds are audited annually. Data and information referring to some periods mentioned have not necessarily been audited. There is no guarantee that this fund will be treated as a long-term fund for tax purposes. Investment funds have no guarantees from the fund manager or portfolio manager or any insurance mechanism, and are not covered by the Credit Guarantee Fund (FGC).
*The art work is not marked-to-market but priced according to the original purchase.
**Local assets are marked-to-market on a daily basis. Investments offshore in the Plural Capital Global Macro Segregated Portfolio Fund are marked-to-market and disclosed on a monthly basis along with the fund's NAV.