Worker can use up to 50% of FGTS to buy Eletrobras shares

The TCU (Union Court of Auditors) approved the Eletrobras capitalization process, and workers from any sector who have funds in the FGTS (Fundo de Garantia por Tempo de Serviço) will be able to use up to 50% of the fund to buy shares in the company.

The mechanism used for this process is the Mutual Privatization Fund, created in 2000, and already used in other cases, such as at Vale and Petrobras.

There are two models of funds: FMP-FGTS, in which only individuals with accounts linked to the Severance Indemnity Fund for Employees participate, and the FMP Private Resources, in which investors use their own capital to invest.

Both XP and Suno point out that the main risk for these investment models is that FMPs become variable income, that is, they run similar risks to B3 shares, such as volatility and price variation.

In this way, XP analysts recommend that investors understand if their profile is compatible with this model to avoid frustration in the future with possible losses.

Suno also says that “Mutual Investment Funds invest in companies that are or were once state-owned. However, the best, in this case, is always to buy their shares on the stock exchange”.

In an earnings conference call, the president of Eletrobras, Rodrigo Limp, planned to make the capitalization offer in June. With this, the government would no longer be the majority partner in the company, becoming the owner of 45%. Thus, the company will become a holding company, and no longer a state-owned company.

It was established the use of a ceiling of R$ 6 billion for FGTS resources to buy shares in the public offering.

How to use the FGTS?

If the worker wants to buy Eletrobras shares with the FGTS, it is possible to participate individually via a fund or an investment club, the CI-FGTS, which works as a pooling of resources of individuals – from a minimum of three and a maximum of 50 participants—, for investment in bonds and securities.

*With information from Priscila Yazbek of CNN