Reel coming soonThe unitholder's routine: monitor, react, sellshort video · 9:16
Until the video is out, the slides below cover the whole lesson.

AdvancedBrazilian REITs · Lesson A5.4 · Module A5

The unitholder's routine: monitor, react, sell

Module A5: Building and managing your portfolio

11 slides~5 minquiz at the end

In this lesson

  • The investor's calendar
  • How to react to each event
  • When to sell, and when not to
See the slides
Open monthly paper planner on a desk

Brazilian REITs · Lesson A5.4

You bought. Now what do you watch?

A short routine each month, quarter and year — and the real reasons to sell.

The investor's calendar

What to check, and when

  1. Every monthPaid vs. generatedpayout against cash, material facts
  2. Every quarterIncome healthvacancy, defaults, leases, debt
  3. Every yearAccounts and meetingappraisal, fees, issues — and vote
  4. When it happensEventissue, meeting, merger, liquidation

A notice arrived

Each event calls for a response

What to doLesson
Share issuesubscribe or accept dilution, math doneA4.1
Meetingread the proposal and voteA2.1
Mergercheck the exchange ratioA4.2
Liquidationhand in your purchase noteA4.3

Sell?

Three real doors, one fake

Real reasons

  • The thesis broke: key tenant gone, no way out of debt
  • A poorly explained conflict of interest
  • Rebalancing the portfolio

Fake door

“It fell”

  • The price fell this month
  • Another fund paid more

Rebalancing

10% target, 15% limit

  1. 10%A
  2. 9%B
  3. 16%C
  4. 11%D
  5. 8%E
15% limit

Fund C rose past the limit. Time to sell the excess — not because it rose, but because it weighs too much.

Five of the ten funds in an illustrative portfolio.

The math, with tax

A R$ 200k portfolio

R$ 32kfund C: 16%−R$ 20ktarget: 10%=R$ 12kto sell
R$ 12k−R$ 9.6kcost: price 25% above average=R$ 2,400gain
R$ 2,400×20%=R$ 480tax (DARF)

Tax and brokerage costs belong in the decision to trade.

The golden rule

Thesis, not quote

“It fell, I sell; it rose, I buy more” is reacting to price. The decision comes from the thesis and the fund's cash generation.

Remember this

Three takeaways

  1. A routine in three rhythmsMonth: paid vs. generated. Quarter: income health. Year: accounts and meeting.
  2. Events need mathIssues, mergers and liquidations each have their own calculation first.
  3. Sell with a reasonBroken thesis, conflict or rebalancing — minding the 20% tax.

Quick quiz · 1 of 2

Which is a good reason to review a position in an FII?

See answer

Paying more than it generates. A dividend without cash behind it tends to get cut. A 5% dip or a neighbor's yield doesn't change the fund.

Quick quiz · 2 of 2

10% target per fund, 15% limit. One fund reached 16%. What now?

See answer

Sell the excess. The fund didn't get worse; it just weighs too much now. Work out the 20% tax on the gain from the part you sell.

Lesson complete

You have reached the end of the available lessons

New lessons join the path soon. Meanwhile:

LearnBack to the Asset GuideContinue
See all lessons on Brazilian REITsStart over

1 / 11

Use the ← → keys, swipe on your phone or tap the dots.

Image credits

Educational content, written for learners. Not investment advice.