What was a proposal in July is now a done deal. On July 27, 2026, the extraordinary general meeting (AGE) of ITIP11 — a Brazilian REIT fund of funds (FII, or Fundo de Investimento Imobiliário) that tracks the Teva Paper Index — approved the dissolution and wind-down of the fund without any dissenting vote. The fund will cease to exist: its 36 underlying real estate credit funds (CRI funds) will be sold, the proceeds will be used to subscribe units of INHF (Inter Hedge FII) at net asset value (NAV), and each current ITIP11 unitholder will receive those INHF units plus any residual cash. With units trading at R$ 55.29 on Aug 4 against a NAV of R$ 67.07, there is roughly a 21% spread on the table for holders who stay through completion.
What did the ITIP11 shareholder meeting decide?
The July 27, 2026 meeting approved, without reservations, the dissolution and liquidation of ITIP11. The mechanism: sell all 36 CRI (Certificado de Recebíveis Imobiliários — Brazilian real estate receivables certificates) funds in the portfolio at market price, deploy the proceeds to subscribe INHF units at NAV, and distribute those INHF units — plus any remaining cash after expenses — proportionally to each ITIP11 unitholder.
How the wind-down will actually work
The approved process has three sequential steps, and each one carries distinct risks worth understanding:
Step 1 — sell the portfolio. Inter Asset will liquidate, at market prices, the 36 CRI funds that make up ITIP11's portfolio. The largest positions are names like KNIP11 (9.4% weight), KNCR11 (9.11%), MXRF11 (8.52%), and IRIM11 (5.81%), among others. All of them need to become cash.
Step 2 — subscribe INHF units. The cash raised is used to subscribe new units in INHF (Inter Hedge FII) at NAV. This is where the conversion reference is set: INHF comes in at net asset value, not at ITIP11's discounted market price.
Step 3 — distribute to unitholders. INHF units are delivered proportionally to each of ITIP11's 7,225 unitholders, along with any cash that remains after paying the process expenses.
The key phrase for investors is "at NAV." ITIP11 trades at R$ 55.29, but its per-unit NAV is R$ 67.07 (June 2026 base). If the conversion is done at NAV, a holder who paid R$ 55.29 stands to receive something worth close to R$ 67.07 in INHF units — that's the ~21% spread. It exists precisely because the market prices a fund-in-wind-down at a discount.
The 21% spread: real opportunity or trap?
The figure is appealing, but it represents a theoretical ceiling, not a guarantee. Three factors can erode the distance between R$ 55.29 and R$ 67.07:
(a) The NAV at wind-down may differ from June's R$ 67.07. That number is a snapshot from June. What's actually realized depends on how the 36 underlying funds are sold. Liquidating an entire portfolio at once typically means accepting discounts — the market prices sellers under pressure differently from voluntary sellers.
(b) Process expenses come off the top. Operational costs of the dissolution and liquidation reduce the net amount unitholders receive. The 21% gross spread is not the net spread.
(c) The timeline is open-ended. Inter Asset has not disclosed a schedule. Capital locked in a process of unknown duration has opportunity cost: the same R$ 55.29 could be compounding elsewhere while the wind-down drags on.
Add to this that INHF itself trades on the open market and has its own liquidity — selling what you receive at the end may not be straightforward. This article builds on the July article that covered the original merger proposal; the AGE has now converted that proposal into a binding resolution.
What is INHF — the product you're about to receive
Precision matters here: ITIP11 unitholders won't receive an improved version of ITIP11. They'll receive a different fund entirely. INHF (Inter Hedge FII) is an actively managed high-grade credit fund — lower credit risk, but operating under a distinct investment logic.
ITIP11 was a passive fund of funds, engineered to replicate the Teva Paper FII Index (ITAGEM). Whoever held it made a deliberate choice: exposure to that index, with automatic diversification across 36 CRI funds, without active stock-picking. That identity disappears in the wind-down. INHF doesn't track the Teva Paper benchmark; it selects credits actively.
For unitholders who specifically wanted passive index exposure to Brazilian real estate credit — and there's a legitimate reason to want exactly that — this is a change of thesis, not a continuation. Anyone who wants to maintain index-style exposure to the Teva Paper segment will have to find another vehicle after the conversion; INHF doesn't fill that slot.
For current unitholders: what to do now
Two paths are available, each with a distinct trade-off:
Option 1 — hold through the wind-down. This is the route for unitholders targeting the spread between the current price (R$ 55.29) and NAV (R$ 67.07). The trade-off: accepting an open-ended timeline, uncertainty about the final NAV after expenses, and ending up with a different product (INHF) whose fit in your portfolio you'll need to evaluate.
Option 2 — sell now at market price. Exits at the current discounted price, giving up the potential spread upside but closing exposure to a process whose timeline and final terms remain undefined.
The revised rating is 5.5 (HOLD), which reflects exactly this duality: the discount to NAV is real, but the open variables prevent treating it as a certain gain. One date-sensitive detail: while the fund exists, it continues paying out. The next distribution is R$ 0.76 per unit with an ex-date of August 14, 2026 — unitholders still holding on that date receive it. See the full ITIP11 analysis page for updated figures.
How long until you receive anything? Inter Asset has not yet published a wind-down schedule. Processes of this type typically take 3 to 12 months depending on the liquidity of the underlying assets. Capital locked for that period has a real opportunity cost — factor in whether the ~21% spread justifies an open-ended wait for your situation.
New positions: the calculus has fundamentally changed
Before the July 27 AGE, buying ITIP11 meant acquiring a long-term income product: a passive CRI fund of funds with a ~12.4% annual distribution yield and a NAV discount functioning as a margin of safety. The thesis was buy-and-hold with a carry.
After the AGE, the nature of the trade is entirely different. Buying ITIP11 today is a pure event-driven arbitrage — you're not acquiring the fund for what it produces, you're betting on the NAV-vs.-price gap materializing within an unknown time frame, with the added complexity of ending up in a different fund on the other side. The return now depends on two variables outside the investor's control: how long the liquidation takes and what NAV is actually realized when the 36 funds are sold.
The structural headwinds that already weighed on the fund are worth keeping in mind: a double-layer fee structure (estimated total effective cost of ~1.0–1.3% per year versus the stated 0.30%), low daily trading volume (~R$ 91,000/day, which limits positions above R$ 30,000), and a fund size that has shrunk 30% since its IPO (from R$ 71.8M to R$ 50.2M). Investors seeking recurring income from Brazilian real estate credit funds have more direct alternatives without the embedded wind-down risk.
What unitholders need to monitor from here
1. Official wind-down schedule — Inter Asset has not yet announced one. This is the single most important piece of missing information: without a timeline, the 21% spread has no date to materialize against.
2. Ex-dates and distributions during the process — the fund continues paying out while it exists. R$ 0.76 with ex-date Aug 14, 2026 is confirmed. Watch for any additional distributions before the fund closes.
3. Definitive conversion terms — the exact ITIP11 → INHF unit ratio and any operational costs that reduce the net amount delivered.
4. INHF performance during the transition — the INHF units you'll eventually receive are already trading on the market. Their price and NAV fluctuate independently.