Core Asset Management

Core Core Asset Management was a Brazilian real estate investment fund manager responsible for CORM11 – Core Metrópolis, a corporate slab fund launched in May 2021 with a proposal aimed at qualified investors. The manager ended its independent trajectory in August 2022, when Asa Investments acquired Core and took over the fund's management, renamed to ASMT11 (ASA Metrópolis) as of 24/08/2022. There are no records of other products under the Core Asset umbrella besides this single FII.

Track record and governance

Core Asset Management's operational history is short — just over a year of independent management (May/2021 to August/2022) before the transfer to Asa Investments. During this period, the fund was structured with administration by BTG Pactual Serviços Financeiros S.A. DTVM, an administration fee of 1.20% p.a., and a performance fee of 20% over IPCA + IMA-B5 yield. The portfolio consisted of corporate properties in São Paulo (Souza Aranha I and II) and Rio de Janeiro (Edifício Flamengo), as well as an asset in Porto Alegre. The change of control in 2022 shows that Core failed to consolidate its market position — the acquisition by Asa was, in practice, a sale-based exit, with no publicly identified CVM regulatory issues on record. Following the transition, the administrator changed to Banco Daycoval S.A.

Strategy and fund under management

Core Asset Management's only product was CORM11/ASMT11, a hybrid brick-and-mortar fund focused on corporate slabs. The strategy centered on upper-middle-standard buildings in secondary markets in São Paulo and Rio de Janeiro — a segment that suffered intensely from the post-pandemic vacancy crisis and the consolidation of remote work. The fund never reached a relevant scale: it came to the market with only 1,017,316 shares and equity of R$ 85.6M at the management change, and today, under Asa, it presents:

• P/BV of 0.41 — 59% discount over net asset value of R$ 9.89/share
• 12-month DY of 0.00% — fund with no income distribution
• Only ~407 shareholders — minimal liquidity
• Net equity of R$ 169M (share expansion under Asa) with a quotation of R$ 4.10
• Vacancy of 9.60% in a portfolio with only 4 properties

The trajectory demonstrates that Core's original proposal — a qualified fund of smaller corporate slabs — did not find sufficient demand to sustain itself independently.

Strengths and points of attention

• Qualified administration at the start: BTG Pactual as the original administrator and Daycoval as successor are solid market references
• Portfolio with real assets: corporate properties with expressive net asset value (R$ 9.89/share) indicate substance in the underlying assets

• Very short history and ended as an independent manager: Core Asset no longer exists as a management entity — it was absorbed by Asa in 2022
• Only fund in severe distress: ASMT11 with no distributions, a tiny shareholder base, and a P/BV of 0.41
• Insufficient scale: a single product, never scaled, in a high-competition and low post-pandemic demand segment
• Lack of public information: the manager has minimal digital presence — no official website, no recent CVM communications regarding the management entity

For which investor it makes sense

Core Asset Management no longer exists as an independent manager — its analysis is relevant only as historical context for ASMT11. The fund inherited by Asa Investments is not suitable for any conventional investor profile at the moment: no income, with extreme discount and minimal liquidity. Investors holding ASMT11 shares should monitor Asa's strategy for divestment or asset restructuring of the fund. Core Asset, as a manager, is a shelved case — there are no new products or prospects for brand continuity.