What Happened to LSAG11 in July?
Distributions held steady. Contrary to market projections and preliminary data pointing to a distribution of R$ 1.00 per unit, the July management report for the LSAG11 agribusiness fund (Fiagro) confirmed a payment of R$ 1.05 per unit. This distribution maintains the stable trend the fund has carried since January 2026.
Another positive surprise came from the net asset value per unit. The fund's book value rose to R$ 99.26 per unit in July, surpassing the R$ 98.03 recorded in June and R$ 78.88—wait, R$ 97.88 in May. As a result, the Fiagro's total net asset value broke its previous barrier to close the month at R$ 100.18 million, up from R$ 98.9 million in the previous reading.
Is the Merger Into RZAG11 Actually Going to Happen?
It still depends on unitholders. The proposal to merge LSAG11 into RZAG11—both managed by Riza Asset Management—was submitted via an extraordinary unitholders' meeting (AGE) and is awaiting deliberation. Because this is a transaction between related parties, the process requires extra scrutiny regarding the unit exchange ratio.
Management argues the merger will bring clear scale benefits. If approved, the transaction will create a combined fund with a net asset value of approximately R$ 765 million. For LSAG11 unitholders, the main promised benefits are:
- Cost reduction: The management fee will drop from 1.40% to 1.15% per year.
- Liquidity: LSAG11 currently suffers from extremely low trading volume, averaging only R$ 124,000 per day. Migrating to RZAG11 removes this exit barrier.
- Diversification: Immediate access to RZAG11's asset pipeline and more robust portfolio, diluting individual credit risks.
Mind the Waiting Period
Until the meeting takes place, investors are in a sort of limbo. Establishing large positions now purely to speculate on merger arbitrage is not worthwhile, as the outcome depends entirely on the unitholders' vote.
How Does LSAG11's Dividend History Look?
Consistency is its hallmark. Since the beginning of 2026, the fund has delivered exactly R$ 1.05 per unit every month. This consistency secures an annualized dividend yield of 17.33% based on the market price of R$ 78.31, which was the closing price in the July report.
The fund's distribution policy is predictable: announcements are made on the last business day of each month (the record date), with units trading ex-distribution on the first business day of the following month. Payments land in unitholders' accounts on the 10th business day.
For August and September 2026, management has already signaled in its projection charts that it expects to maintain the R$ 1.05 per unit level. Below is the recent distribution history:
| Reference Month | Distribution per Unit (R$) | Status |
|---|---|---|
| January/2026 | 1.05 | Paid |
| February/2026 | 1.05 | Paid |
| March/2026 | 1.05 | Paid |
| April/2026 | 1.05 | Paid |
| May/2026 | 1.05 | Paid |
| June/2026 | 1.05 | Paid |
| July/2026 | 1.05 | Paid (Current) |
| August/2026 | 1.05 | Projected |
| September/2026 | 1.05 | Projected |
What Are the Risks From Maturing Assets in the Portfolio?
Roughly 16% of the portfolio. Three important assets in LSAG11's portfolio had scheduled maturities in the very near term, creating so-called reinvestment risk. They are:
- Semeagro (CRA): 9.0% portfolio weight, maturing on Jan 7, 2026 (yielding CDI + 5.56%).
- Atlas Agro (CRA): 4.0% portfolio weight, maturing on Jan 7, 2026 (yielding CDI + 4.00%).
- Renovagro (CRA): 3.0% portfolio weight, maturing on Jan 8, 2026 (yielding CDI + 4.50%).
As these fixed-income agribusiness receivables (CRAs) mature, the manager receives the principal back and must reinvest it. The challenge is that finding new credit assets offering yields as high as CDI + 5.56% without increasing the portfolio's credit risk is a complex task in the current macroeconomic environment. If new assets are originated at lower rates, the fund's future distribution capacity could come under pressure.
Why Does Concentration in Grupo Úbere Demand Attention?
Forty percent of net assets. LSAG11's portfolio holds 20 assets, but their weight distribution is highly uneven. Grupo Úbere alone accounts for 40.0% of the fund's net asset value through a rural product note (CPR) yielding CDI + 3.00% with a maturity date of December 1, 2030.
This concentration is a critical risk factor for a small-scale Fiagro. If the debtor encounters any operational or financial difficulties that delay payments, nearly half of the fund's revenue would be immediately affected. For comparison, the portfolio's second-largest asset is the Riza Kafe fund, representing a 15.0% share at CDI + 4.75%.
Below is the structure of the main assets making up LSAG11's credit portfolio:
| Asset / Debtor | Type | Portfolio Weight (%) | Index / Rate | Maturity |
|---|---|---|---|---|
| Grupo Úbere | CPR | 40.0% | CDI + 3.00% | Jan 12, 2030 |
| Riza Kafe | Fund | 15.0% | CDI + 4.75% | Jan 4, 2033 |
| Semeagro | CRA | 9.0% | CDI + 5.56% | Jan 7, 2026 (Matured) |
| Atafona Sementes | CRA | 6.0% | CDI + 0.025% | 09/32/2032 |
| Atlas Agro | CRA | 4.0% | CDI + 4.00% | Jan 7, 2026 (Matured) |
| Renovagro | CRA | 3.0% | CDI + 4.50% | Jan 8, 2026 (Maturing) |
Is LSAG11 Worth It at a 21% Discount to Book Value?
The discount is real, but caution should prevail. Trading at R$ 78.31 against a book value of R$ 99.26, LSAG11 trades at a price-to-book ratio of 0.79. This 21% discount is attractive and reflects the fund's structural weaknesses: a small unitholder base of just 2,550 investors and stifling daily liquidity of R$ 124,000.
If the merger into RZAG11 is approved, investors who buy LSAG11 at a discount could capture value through the exchange ratio, migrating to a larger, more liquid fund without taking on the current discount penalty. However, if unitholders reject the proposal at the meeting, the fund will continue carrying reinvestment risks from matured assets and heavy concentration in Grupo Úbere.
Rico aos Poucos Verdict: HOLD
We maintain our recommendation to await the outcome of the merger before deploying new capital. The fund showed operational resilience by maintaining its dividend at R$ 1.05 and expanding its net asset value, but the legal uncertainty surrounding the merger and low liquidity make the asset unsuitable for new purchases at this time. Current holders can keep their positions to follow the upcoming unitholder vote.
