Investment Funds

The investment units of an Investment Fund are financial instruments that result from the raising of capital from several investors. Together, these amounts constitute an autonomous patrimony, managed by a management company that applies them in a variety of assets, which may include bonds, shares, money market instruments or even commodities, such as gold or oil. Banco Finantia markets investment funds managed by three of the most renowned management companies worldwide.

These financial instruments allow:

• Accessing markets, assets and opportunities that would otherwise not be available to most investors.
• Guaranteeing the diversification of investments, distributing them among different securities, markets and even currencies, to contribute to a general risk reduction.
• Investing in the medium/long term, with the possibility of benefiting from the high liquidity provided by most funds.
• Ensuring that asset management is carried out by specialists dedicated to the individual performance of each fund.

Bond Funds portfolios predominantly constituted by bonds (debt securities) issued by companies, private or public, or States or government entities. They are traditionally less susceptible to risk.

Equity Funds portfolios predominantly constituted by shares of companies, national and international. They can generate more attractive returns, but are also, by definition, traditionally associated with higher risk.

Money Market Funds portfolios predominantly made up of money market instruments, such as time deposits and investment securities with a maturity of less than one year.

Index funds reproduce, permanently, in whole or in part, a given index.

Guaranteed Capital Funds have associated guarantees for the entire capital and, possibly, for a certain income profile.

Structured Funds at predefined dates - allow investors to make gains based on algorithms associated with results, price changes or other conditions of financial assets, indexes or benchmark portfolios or collective investment organisms with similar characteristics.

Flexible Funds do not assume any commitment regarding the composition of the patrimony in the respective constitutive documents.

The investment funds made available by Banco Finantia can be subscribed by investors, individuals and companies, considering their different risk profiles.

Subscriptions are processed on the customer's instructions. The subscription order is made with an “open quote”, that is, depending on the fund in question, only a couple of business days following the order (as a rule, on the 1st or 2nd business day thereafter) is it possible to know the number of participation units effectively subscribed.

The fund may be redeemed (in whole or in part) based on a request by the customer. Depending on the fund, this is processed at the value on the redemption date, which as a rule will only be known the day following that of the request. 

In either case, subscription or redemption requests can be made in person or by email to your Private Banker.

Income from participation units of national investment funds obtained by individuals resident in Portugal is subject to withholding tax at a levy in discharge rate of 28% (with the option for inclusion), with capital gains arising from the redemption of participation units being subject to withholding tax at a special definitive tax rate of 28%.

In the case of income paid to resident investors that are legal persons, it is subject to a withholding tax of 25% paid on account. Non-resident investors earning income from domestic securities investment funds, including capital gains resulting from the respective redemption or liquidation, are exempt from IRS (Personal Income Tax) or IRC (Corporate Income Tax).

In the case of foreign investment funds, there will be taxation at the rate of 28%, under IRS, on the income distributed on the participation units and on the capital gains resulting from the onerous sale or redemption of the participation units, obtained by individuals resident in Portugal.

This text is a summary of the applicable tax regime and does not exempt one from consulting the legislation in force.

As with other financial instruments, investment funds are also susceptible to different levels of risk, depending on their type and investment portfolio. Investment Funds do not offer a guarantee of return, since it is not possible to anticipate the income generated in the future.

As a rule, the higher the risk level of a Fund, the greater the potential for appreciation. However, the risk of loss of the invested capital will also increase proportionately.

It will be important, for example, to consider market risk, derived from natural price changes in the specific markets in which each fund invests, as well as, when applicable, exchange rate risk (exposure of the fund's currency value to the evolution of the EUR). Both can generate gains, as well as give rise to losses.

Investment funds are a regulated financial product and are subject to registration and supervision by the Portuguese Securities Market Commission (CMVM). The CMVM is responsible for assessing that the financial intermediaries make periodic information about the Funds available to the respective investors, as well as all other relevant information, constantly updated.

For more information, it is suggested you consult the document “Additional Information for Customers”.

Banco Finantia's registration number at the CMVM - Portuguese Securities Market Commission: 109