The fund seeks capital appreciation through investments in fixed-income securities, primarily tax-incentivized infrastructure debentures, as well as capital gains from trading these securities.
| Fund | Date | Quota (R$) | Day | Monthly Return | Year | 12M | 24M | Since Inception |
|---|---|---|---|---|---|---|---|---|
To invest in D60 IPCA, access the BTG or XP investment platform and purchase units, which are available on request.
Investments are immediately converted into units, and redemptions are settled on D+60.
D60 IPCA is an open-end infrastructure investment fund (FI-Infra) that invests primarily in tax-incentivized debentures issued by infrastructure companies under Law No. 12,431. Investments are converted into units on D+0, there is no lock-up period for redemptions, and redemptions are settled on D+60. The fund is open to the general public and is exempt from Brazilian income tax for individual investors.
The fund seeks to generate returns for unitholders through unit appreciation, reflecting the portfolio’s carry (IPCA plus a spread). Its target return ranges from 0.5% to 1.5% above the reference NTN-B government bond. On a grossed-up basis, taking into account the income tax exemption for individual investors, the target return ranges from NTN-B + 1.5% to NTN-B + 2.5%.
In addition to portfolio carry, D60 IPCA seeks capital gains by trading assets in the secondary market and taking advantage of opportunities for yield and spread compression.
D60 IPCA benefits from a key strength of Bocaina Capital: a team specialized in infrastructure with strong proprietary origination and structuring capabilities. This provides access to credit opportunities in infrastructure projects that often fall outside the market’s radar, offering the potential for more attractive returns on assets of similar credit quality.
Bocaina is a fund manager specializing in tailored investment solutions for individual and institutional clients. Our goal is to maximize returns and minimize risks through diversified strategies and professional asset management.
In simple terms, tax-incentivized debentures are issued at a rate of IPCA plus a coupon, such as IPCA + 8%.
As debentures trade in the secondary market, their prices may change, resulting in a higher or lower yield. For example, if a debenture issued at R$1,000.00 with a yield of IPCA + 8% is purchased for R$900.00, the buyer’s yield will be higher than IPCA + 8%. The extent of the increase depends on the security’s duration.
Even when no trades take place, movements in the reference NTN-B government bond — the one with the duration closest to that of the debenture — affect the debenture’s valuation. For example, if a debenture references the 2030 NTN-B, a 0.10 percentage point increase in that bond’s yield will imply a similar increase in the debenture’s yield.
To check the mark-to-market valuation of a specific debenture, data for most securities is available at data.anbima.com.br.
In January 2023, debentures held directly by individual investors through brokerage firms began to be shown at market value, as in investment funds, instead of the historical accrual-based valuation. What does this mean?
Under accrual-based valuation, the price of the debenture is updated using the yield at which it was purchased.
Under mark-to-market valuation, the price changes according to its fair market value. Many assets have an ANBIMA reference price, which takes into account benchmark government bonds and market transactions.
For example, R$1,000 invested one year ago in a debenture with a five-year duration at IPCA + 3%, now trading at IPCA + 4%, would be valued at approximately R$1,090 using accrual-based valuation (5.8% IPCA plus a 3% yield) and approximately R$1,040 using mark-to-market valuation (a negative 5% impact from a one percentage point increase in yield over a five-year duration).
We view this change positively because it provides investors with more accurate pricing information.
One way to generate returns from fixed-income investments is through yield compression and the resulting capital gains.
At D60 IPCA, we seek to invest in securities offering attractive credit risk premiums (spreads), drawing on our technical expertise in infrastructure and our origination and structuring capabilities.
In addition to supporting attractive returns over time, above-average spreads may generate capital gains when a security is sold at a lower yield. The size of the gain depends on the security’s duration.
A rule of thumb for estimating this potential gain is to multiply the duration by the change in the debenture’s yield.
For example, debenture A was issued at IPCA + 8% with a seven-year duration, while similar securities trade at IPCA + 6.5% in the secondary market. If debenture A is sold at IPCA + 6.5%, the approximate capital gain would be: 1.5 percentage points per year (yield difference) × 7 (duration) = 10.5% capital gain on sale.
Your D60 IPCA annual income tax statement is available directly from the fund administrator, BTG Pactual Serviços Financeiros, through its Investor Portal: https://portaldoinvestidor.btgpactual.com/login.
Due to regulatory restrictions, any questions should be addressed directly to the administrator at ir.psf@btgpactual.com.
| Fund Name: | Bocaina Infra 60 IPCA |
| Brazilian Tax ID (CNPJ): | 55.362.588/0001-15 |
| Fund Type: | Tax-Incentivized Infrastructure Investment Fund (FI-Infra) |
| Target Investors: | General Public |
| Fund Administrator: | BTG Pactual |
| Management Fee: | 1.00% per year |
| Performance Fee: | 10% of returns exceeding IMA-B |
| Tax Treatment: | Income and capital gains are exempt from Brazilian income tax for individual investors |
| Income Distribution Frequency: | No Distributions |
| Target Return: | 0.5% to 1.5% above the reference NTN-B government bond |
| Fund Term: | Indefinite |
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