This movie “The Tree of Life” is a total journey. I did not like him the time I attended, I remember having Brad Pitt mistreating his children and then they dying in the war when they are older, but now I’ll take another chance and I’ll see him again. I did not even remember that Blog Muse was her main actress. That’s the only reason I’m going to review it.
Well, I’m going to talk a little bit about Real Estate Funds (fii) from now on, continuing my asset diversification plan this month in two funds: HGRE11 and RNGO11. There are many sites talking about fii, what I like most is the simplest: fiis.com.br Site Real Estate Funds, also has A LOT and deeper into this in Tetzner (which is means that almost all paid to read or sign) and Of course there is a lot of good stuff on Bastter’s website. With the site that I signed and with Bastter I turned around and set up a portfolio of fiis to contribute. I’m going to explain how I thought about setting up my trust fund portfolio, the assets are down here. (It’s not a buy recommendation for anyone, it’s just the ones I chose for ME.) Since XPOM is not a fii, but has the same tax treatment.
I’m going to tell some generalities about fiis for those who do not know much about it.
There are two great classes of Fii to know: brick and paper.
I have not studied much about books, but I gave a good read this month. Among the brick fiis (they are even physical buildings) it has several subtypes: universities, malls, office buildings, sheds, shopping centers and retail stores. When you buy a share from such a fund you will be entitled to receive your share in the rent or sale of the building (but the goal is to rent to have monthly rent). So if the building goes well and manages to rent the rooms, the shops, the parking spaces, you go well. Buying fii is nothing more than indirectly owning pieces of real estate and receiving for their rent, simple, nothing more than that, will have a company to organize the contracts and rent, evicte and sue the tenants if any, to Follow up if you want can read the monthly, half-yearly reports or other releases that the fund issues.
Paper funds behave more as a fixed income type because they invest in CRI that are nothing more than debt instruments (remember that RF is always a debt instrument). Paper companies are not real assets, they are only debts that you buy to receive interest, in the same way as Treasury Direct, or LCI, LCA, debentures and CDBs. Paper cassettes are no better or worse than brick fiis, they are VERY different assets and this you have to know, each with its advantage and disadvantage. The main advantage of brick fii is to be a REAL asset.
How did I choose my assets? I first took and studied the largest and most liquid. Then I noticed the lowest administration fees (ANY TOTAL RATE GREATER THAN 1% PERIOD IS EXTREMELY HIGH) – Overall, the WMD rates of the fiis are VERY high, which I do not like at all, but it’s hard not to be, It gives a lot of work and a lot of expense, especially with notaries and processes. From my TOTAL patrimony I only allocated 10% to be in fii, for now is what I think tolerates. I preferred to multi-multi-multi-multi (for now, the more multi multi, multi-buildings, multi cities, multi tenants, multi-types of buildings, etc.). I do not want to risk a fii of a building just for now.
AGCX, BBPO are sure to have bought the CEF and BB buildings and now rent the buildings and agencies for them. BBRC is a fii that builds bank agencies to rent pro BB.
BPFF is a fund of funds (which I found with the lowest adm. Rate of 0.4% per year – this rate will be added to the other fees for each fi i that he buys). It is annoying to pay so much, but for those who do not know much or do not have much time to study the market and to dedicate is a good request.
BRCR is the biggest fii, the bad thing is that it is managed by BTG which is a bank that I particularly do not like governance, but I put it here because it is the biggest one and it has a lot of liquidity and a satisfactory average income.
FAED is a fii who rents buildings to Anhanguera Educacional, one of the largest private college groups in the country. The FCFL11b is the fund that rents the Insper building, deconsider therefore I have withdrawn it.
FFCI is a gigantic background of several buildings in various cities. Good to diversify.
FIIP is an industrialist with several sheds, 100% leased. (I like industry, logistics and sheds – do not ask me why, not even I know).
HGBS is a fund with many, many even malls. It is managed by Credit Suisse. HGLG is a logistic fund and sheds. HGRE is a very large and diverse office and commercial slab fund. Those that start with “HG” are all run by Credit Suisse (I think it’s the biggest Swiss bank, but I’m not sure). The bad of them is the adm rate which is pretty salty.
KNCR is a PAPER background that I put to diversify a little within this class. He buys a bunch of CRI from several different companies. Pretty good fuck rate of 1% aa
KNRI is huge this background. It was sold by Itaú at the time of the IPO and Personalitee managers sold to Itaú customers. The quota price dropped a lot since the ipo and whoever bought the wave of the manager was fucked. But for now it works.
RBRD commercial real estate, stores in MG, RN and RJ. 100% leased. Low adm.
RNGO office buildings, parking and shops in Barueri. Low admission rate.
SDIL is an industrialist in Duque de Caxias. More than half of it leased to BR foods.
XPOM is called XP omega, it is not a fii but a small hydroelectric and another wind power plant, it is a small investment and I will consider it as risk capital.
To tell you the truth, I’m buying just to increase my monthly yield and diversify more. Bovespa made a good climb. Even so, “Only diversification saves.” The monthly yield just having stocks is VERY LOW unless you have a $ 4 million in there you get along.
I wanted to start investing in growth because I was starting and I was (I’m new), now I feel that I already have a lot of equity in stocks and already has huge potential to grow my portfolio. By the end of 2016 I will concentrate more on fiis, RF and actions abroad. And maybe next year I will reverse logic and invest more in income than in growth, and so after I reach my income I want to invest again in growth or else leave mixed income / growth. RF will serve more as “self-insurance” and reserve to buy a dead chicken in the medium-term future. RF is 10% of my total assets here in Brazil, that’s the goal.
Next month is going to have a huge contribution abroad for two reasons: 1- I added the money in dollar already a year ago to open account in Interactive Brokers that opens only with 10k dollars in a single paulada. 2 – I want to open account in BB Americas, which is Banco do Brasil in its American version, they also charge 10k dollars to open the account there (that must necessarily leave their BB account from here from Brazil to there. Transfer my account from my OTHER US bank to BB AMERICAS but it will not, I could, but I would have to send all the money back to Brazil and then send it back and I would lose about 5% of the fees. Even opening these two accounts will make a super contribution of almost 20k dollars in my international portfolio that I studied and I joined almost a year to assemble.When I make the contributions
I will comment and explain here (the good thing about IB is that the brokerage order costs 1 dollar basically, spending 20 dollars I will distribute 20k dollars in 20 assets that I have already started there extremely diversified work – I will not lie that does not give a fear, I feel that I am to make a big step, but that is scary, GIVE! .
Back to the brazilian REITS (fiis)
The fii market in Brazil is very recent and has a lot to evolve. Governance and reporting are very nebulous, and organization is generally bearish. In the near future I think their income will be taxed (currently it is not, but in the first world it is, except in Singapore). We already have more than 130 fiis in Brazil, some have already left the stock market, some are not liquid, others are just for qualified investors, others are horrible, anyway, it has anyway.
The fiis that I mounted my portfolio are all inside the IFIX which is their index, there is even a fii of a bunch of fiis (looks like an FII ETF) which is the FIXX11 that imitates the index, good for those who want to buy and do not have work searching and studying. The REITS are more liquid because they form 99% of the business in the market, so if you are going to buy fii, try to buy those from within ifix. I took a quick look at the Bastter ranking just to base myself but it did not help anything to choose, I just bought some of the rankings by pure coincidence (and also has very little vote in the ranking, sometimes the guy goes there and votes in the fii Which he bought only to score the fii himself in the ranking.
I avoided placing a fii paper (only 1), avoided it from outside the ifix, avoided a single building, avoided a deadline date, avoided development (which they are going to build for later to sell), for me it could be active management Or passive (when it is actively managed it is a sign that the administrator can do much more without going through the assembly and approval of the quota holder’s).
On the governance I distrust of all, BTG mainly. Credit Suisse greatly embellishes the reports and puts the stab at rates. There is also a Rio Bravo and another Oliveira Trust. I honestly have no idea who the people are. Also when we hear of some shit done, it’s too late. I think it is pure ILLUSION of these quotaholders to think that they can control the board or the destiny of the fund. Observing bottom vacancy is a bit of a fuss, this will vary with the cycles in the markets, and overall any vacancies will increase or decrease more or less in line with each other overall. Real estate market is cyclical so everyone knows.
I do not want to worry so much about keeping a close eye on myself because I already have the actions. Some guys say that you have until you know and visit the building, beauty, I agree, if I had 800 thousand reais to buy in each fii I wanted to go there and see, but for those who have R $ 2 thousand to put in each one and lives Practically in Colombia this is impracticable. Quality of real estate is essential yes, here I can see by photo or comments from users on the internet, is the maximum. No longer am I buying the biggest ones that exist, so there are a lot of people with me, I have no pretension to beat the ifix or to gain in the appreciation of the quota, my intention is only INCOME and PERPETUITY of the fund (its capacity to survive in the long term) Total yield a little higher than savings.
Finally, in Google Finance I set up a separate portfolio for only the faithful, which is very legal because it is possible to keep track of the evolution of assets, earnings and growth of this portfolio separately, but also put them into the general portfolio that is the totaled To make the total cake. My goal is to have all the assets of fiis by February 2017. And until July 2017 I will have the 5 assets of RF + those fiis + the complete international portfolio, ball show right? If I play, I’ll finish 2017 with 105 financial assets.