Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

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Topic Author
DJN
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Joined: Mon Nov 20, 2017 12:30 am

Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by DJN » Tue Jul 28, 2020 4:18 am

Hi,
calling all Brazilian Boglehead investors. I am preparing a page on Investing from Brazil for Bogleheads and I would like to ask two very wide-ranging questions.

Question 1.
I would like to know what the average savvy Brazilian investor has in their portfolio today.
Where do you keep your cash? Deposit accounts? Poupanca? Etc.
What bonds do you buy? Tesouro direto only?
How do you access equities, direct from stock market or through funds or via something else? Do you use ETFs or mutual funds?
Do you have investment property and in what form? REITs or real assets or both?
Commodities?
Anything else?

Question 2.
How do you access your assets?
Via your bank? Or through an adviser? Or via a small boutique advisory / investment house?
Do you have access offshore to US platforms or through an offshore account to UCITS or US domiciled ETFs? Generic answers for that one!
Do you use online facilities or go through your bank or adviser?

Feel free to name account types etc in Portuguese.
DJN
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.

Topic Author
DJN
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Joined: Mon Nov 20, 2017 12:30 am

Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by DJN » Tue Jul 28, 2020 11:30 am

Hi,
anyone have any inputs to this one?
thanks
DJN
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.

GDPBrazil
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Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by GDPBrazil » Tue Jul 28, 2020 12:58 pm

DJN wrote:
Tue Jul 28, 2020 4:18 am
Hi,
calling all Brazilian Boglehead investors. I am preparing a page on Investing from Brazil for Bogleheads and I would like to ask two very wide-ranging questions.

Question 1.
I would like to know what the average savvy Brazilian investor has in their portfolio today.
Where do you keep your cash? Deposit accounts? Poupanca? Etc.
What bonds do you buy? Tesouro direto only?
How do you access equities, direct from stock market or through funds or via something else? Do you use ETFs or mutual funds?
Do you have investment property and in what form? REITs or real assets or both?
Commodities?
Anything else?
For the average Brazilians, you could try to translate this page : https://www.anbima.com.br/pt_br/noticia ... ceiros.htm

Right now, the market is changing a lot. Until some time ago, people usually go to a major bank (Itaú, Bradesco, Santander, Banco do Brasil, Caixa Economica) and open an poupança account or invest in a Bank that used to charge 1%, 2% and even 3% fees in bonds funds (remember Brazil used to have high yields and inflation).

Some years ago, the government developed an product (Tesouro Direto) that allows people to invest direct in Government Bonds. I personnaly used to invest in these products.

In last ten years,a broker called XP begun to grow very fast. It offered an plataform with differents investments products. It has some advisory affiliated offices that helps people with no finantial instruction to get better products than the ones that they used to have in major banks. Because of XP, the Banks lowered some fees in their products and in the last years the market is much better than it used to be.

The bad thing about XP is that they (and the affiliated offices) made a lot of money with people investing in Stock Funds (FIAs - usualy with 2+20% fee), COEs (structured options products) and hedge funds (also 2+20%).

ETF´s in Brasil: Besides Blackrock, right now the big banks (Bradesco and Itaú) launched some ETF´s. The Itaú brand for ETF´s is Itnow https://www.itnow.com.br/

ETF´s are becoming popular but in a very slow pace because Brazilian still believe in Active Fund. Dynamo (the most famous), Alaska, IP Capital, Brasil Capital, Constellation and BTG Absoluto are the big names for stocks funds.For Hedge Funds, Verde Asset and SPX. Remember Brazil used to be a country of high interests rates. It was a very good time for these funds.

People in Brazil like Real Estate. A lot still invest in real assets but there are some Reits in stock market (FII).

Commodities : it´s not usual (unless you are a market profissional).
DJN wrote:
Tue Jul 28, 2020 4:18 am
Question 2.
How do you access your assets?
Via your bank? Or through an adviser? Or via a small boutique advisory / investment house?
Do you have access offshore to US platforms or through an offshore account to UCITS or US domiciled ETFs? Generic answers for that one!
Do you use online facilities or go through your bank or adviser?

Feel free to name account types etc in Portuguese.
DJN
Personnaly, I have an account in XP, Bradesco Private segment and BTG Pactual Wealth segment.
In my case, the advisors of these 3 institutions are free.
For offshore, I have access through BTG Miami office branch (they use Pershing´s service) and they can buy any Ucits ETF´s that I want. Right now, I´m opening a new account in Bradesco Luxembourg.
But I know some people that opened accounts in Interactive Brokers and Avenue Broker.

Topic Author
DJN
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Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by DJN » Tue Jul 28, 2020 1:15 pm

HI GDPBrazil,
thanks for your really helpful information. Great stuff.
FYI I have an account with Internaxx in Luxembourg, this is now with SwissQoute. They took Internaxx over.
I prefer IBKR to be honest.
There is another alternative in deGiro, trouble is they will want to check your domicile. But I am sure that you can use them.
DJN
Last edited by DJN on Wed Jul 29, 2020 2:15 am, edited 2 times in total.
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.

sean.mcgrath
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Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by sean.mcgrath » Tue Jul 28, 2020 2:03 pm

DJN wrote:
Tue Jul 28, 2020 1:15 pm
FYI I have an account with Interactive brokers in Luxembourg, this is now with SwissQoute. They took Interactive Brokers over.
I prefer IBKR to be honest.
Hi DJN,
Unfortunately I know nothing about Brazil, but I am curious about your saying that SwissQuote took over IB in Luxembourg. Are you sure about this? I cannot find that information when I Google.

sean.mcgrath
Posts: 457
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Location: US in NL

Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by sean.mcgrath » Tue Jul 28, 2020 2:07 pm

GDPBrazil wrote:
Tue Jul 28, 2020 12:58 pm

For the average Brazilians, you could try to translate this page : https://www.anbima.com.br/pt_br/noticia ... ceiros.htm
In fact, they have done that for you. https://www.anbima.com.br/en_us/special ... dition.htm

Topic Author
DJN
Posts: 692
Joined: Mon Nov 20, 2017 12:30 am

Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by DJN » Tue Jul 28, 2020 2:15 pm

sean.mcgrath wrote:
Tue Jul 28, 2020 2:03 pm
DJN wrote:
Tue Jul 28, 2020 1:15 pm
FYI I have an account with Interactive brokers in Luxembourg, this is now with SwissQoute. They took Interactive Brokers over.
I prefer IBKR to be honest.
Hi DJN,
Unfortunately I know nothing about Brazil, but I am curious about your saying that SwissQuote took over IB in Luxembourg. Are you sure about this? I cannot find that information when I Google.
Hi sean.mcgrath,
apologies, I meant to say Internaxx not Interactive. I have corrected that now.
Internaxx is now owned by SwissQoute.
Thanks for picking that one up and thanks for the translation link.
DJN
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.

sean.mcgrath
Posts: 457
Joined: Thu Dec 29, 2016 6:15 am
Location: US in NL

Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by sean.mcgrath » Wed Jul 29, 2020 6:35 am

DJN wrote:
Tue Jul 28, 2020 2:15 pm
sean.mcgrath wrote:
Tue Jul 28, 2020 2:03 pm
DJN wrote:
Tue Jul 28, 2020 1:15 pm
FYI I have an account with Interactive brokers in Luxembourg, this is now with SwissQoute. They took Interactive Brokers over.
I prefer IBKR to be honest.
Hi DJN,
Unfortunately I know nothing about Brazil, but I am curious about your saying that SwissQuote took over IB in Luxembourg. Are you sure about this? I cannot find that information when I Google.
Hi sean.mcgrath,
apologies, I meant to say Internaxx not Interactive. I have corrected that now.
Internaxx is now owned by SwissQoute.
Thanks for picking that one up and thanks for the translation link.
DJN
Thanks for confirming, DJN.

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Barry Barnitz
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Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by Barry Barnitz » Wed Jul 29, 2020 5:02 pm

Hi:

You might find this paper to be of interest:

Varga, Gyorgy and Wengert, Maxim, The Growth and Size of the Brazilian Mutual Fund Industry (March 20, 2010). Available at SSRN: https://ssrn.com/abstract=1575510 or http://dx.doi.org/10.2139/ssrn.1575510

Abstract:
This article describes the evolution of the Brazilian mutual fund industry, its regulatory framework, organization, types of investors and managers, economic environment and its relative growth. It shows the evolution of this industry in Brazil and its idiosyncrasies providing a deeper look into one of the largest emerging market mutual fund industries. It emphasizes the growth of independent managers with more complex assets and sophisticated strategies that resemble international hedge funds. There are many popular and academic explanations for the mutual funds growth, some of which were tested in this article using a time series framework. The results suggest that financial market innovation and market risk are significant variables in explaining growth. Common variables like economic growth, regulation and taxes were not found to be statistically significant. We conclude with a comparison between the evolution of the Brazilian and US mutual fund industries.

regards,
Additional administrative tasks: Financial Page bogleheads.org. blog; finiki the Canadian wiki; The Bogle Center for Financial Literacy site; Wiki Bogleheads® España.

Topic Author
DJN
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Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by DJN » Thu Jul 30, 2020 6:39 am

Hi Barry Barnitz,
thank you for the reference, its a fascinating read for those souls interested in such an exciting subject and a good background! I will add a link and some of the information.
I think I am going to publish the Investing from Brazil paper on here and see if anyone can add anything or make some comments before letting it go live.
DJN
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.

TedSwippet
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Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by TedSwippet » Fri Jul 31, 2020 3:39 pm

DJN wrote:
Thu Jul 30, 2020 6:39 am
I think I am going to publish the Investing from Brazil paper on here and see if anyone can add anything or make some comments before letting it go live.
Thanks for creating this page. While I've made a few small cosmetic changes to it today, overall it looks entirely good to go -- though of course, I know nothing about actually investing from Brazil, so am clearly not qualified to add any details, or spot any factual errors in it :-).

Anyway, it is as easy to change the 'live' version as to change your private user page, so there's no particular need to wait for perfection. If you're happy you have put into it enough of what you wanted to put in, go for it.

Topic Author
DJN
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Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by DJN » Sat Aug 01, 2020 1:36 am

TedSwippet wrote:
Fri Jul 31, 2020 3:39 pm
DJN wrote:
Thu Jul 30, 2020 6:39 am
I think I am going to publish the Investing from Brazil paper on here and see if anyone can add anything or make some comments before letting it go live.
Thanks for creating this page. While I've made a few small cosmetic changes to it today, overall it looks entirely good to go -- though of course, I know nothing about actually investing from Brazil, so am clearly not qualified to add any details, or spot any factual errors in it :-).

Anyway, it is as easy to change the 'live' version as to change your private user page, so there's no particular need to wait for perfection. If you're happy you have put into it enough of what you wanted to put in, go for it.
Hi Ted,
thanks, I think we can go ahead. What do I do to make it live?
DJN
Yah shure. | Have a look at the Bogleheads Wiki in the first instance.

TedSwippet
Posts: 2991
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Location: UK

Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by TedSwippet » Sat Aug 01, 2020 4:05 am

DJN wrote:
Sat Aug 01, 2020 1:36 am
... thanks, I think we can go ahead. What do I do to make it live?
Details are described (briefly!) in this wiki page: Help:Non-US wiki guidelines - Bogleheads

Adding a complete new country is a bit more work than adding a generic non-US page, but mostly it just boils down to looking at how one of the existing ones works and then copying that while substituting country name (and flag image!). Feel free to give this a go yourself -- if you make any mistakes it's all fixable -- or if it looks too intimidating let me know and I'll do it for you.

I uploaded the flag image and created the Brazil template a few days ago, so these are already in place. No Category:Brazil yet though.

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Barry Barnitz
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Re: Brazil: Help needed - What is the typical portfolio that a Brazilian tax resident uses today?

Post by Barry Barnitz » Sat Aug 01, 2020 6:38 am

Hi DJN :

Category:Brazil has been created. All that is needed is to add the category and use the "move" function in the more dropdown box. Move the page from the current User:DJN/Investing from Brazil to Investing from Brazil.

regards,
Additional administrative tasks: Financial Page bogleheads.org. blog; finiki the Canadian wiki; The Bogle Center for Financial Literacy site; Wiki Bogleheads® España.

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