Income+ exceeds BRL 60 million in the 1st week of trading – 02/08/2023 – Market

Investments in RendA+, a new National Treasury bond aimed at retirement, surpassed BRL 60 million in the first week of trading on B3.

According to the Ministry of Finance, 7,675 investors purchased the product between January 30th and February 3rd. The value negotiated represents 12% of the total number of securities sold in the same period — around R$ 475 million.

The result was considered an “extreme success” by the secretary of the National Treasury, Rogério Ceron. “We will continue working and investing in the product to further boost this growth and help more families realize the benefits that saving some portion of their income can generate in the future,” he said in a statement.

Launched at the end of December, RendA+ is the most recent public bond issued by the National Treasury, aimed at investors who want to save extra resources for retirement.

The product is pegged to inflation plus a real interest rate — currently around 6%, according to the simulator available on the agency’s website.

The main difference in relation to other bonds is in the way investments are redeemed. As the objective is to encourage investors to accumulate amounts over the years to receive them in the future as a monthly benefit, the receipt will not occur at once, but in 240 installments —that is, over 20 years.

Currently, eight conversion date options are offered: 2030, 2035, 2040, 2045, 2050, 2055, 2060, and 2065.

According to the Ministry of Finance, the preferred Renda+ securities in the first week were those for 2030, with BRL 24 million in purchases (40% of the total). Then come the titles for 2035, with R$10 million traded, and for 2045, with R$8.28 million.

Another novelty of Renda+ is in relation to the form of acquisition. Interested parties can schedule monthly purchases of new titles – which would be equivalent to new contributions -, with the possibility of payment via Pix.

The minimum amount to start investing is approximately R$30 and acquisitions are available on the Treasury Direct platform.

In the opinion of specialists consulted by the Sheetthe new product has advantages and disadvantages, but the balance tends to be more positive than negative.

Among the favorable points of the title are the simplicity of acquisition and the lower cost in relation to investments with a similar purpose – such as private pension plans.

On the other hand, the product was considered not very flexible, since it does not allow the investor to define how he prefers to receive income after accumulation. The payment is fixed in 240 installments.

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What is RendA+ Treasury?

It is a new government bond launched by the National Treasury, with a sovereign guarantee, aimed at those who want to save for retirement. The logic is to apply the funds for a certain period and then receive a monthly amount for 20 years.

What do I need to know to invest?

Interested parties will basically need to answer two questions: when they want to retire and how much they want to receive monthly in the future. The Treasury simulator will indicate how many securities you need to buy to reach your goal and, consequently, how much you will need to invest over the years.

Regarding the term, the initial offer provides for eight conversion date options (when the person begins to receive income from investments): 2030, 2035, 2040, 2045, 2050, 2055, 2060 and 2065. over up to 40 years. Regarding the amount, the minimum investment is around R$ 30. There is no floor for the income to be earned in the future.

What is the accumulation period?

It is the period in which the saver carries out the application of resources. The security is available for new contributions until the day before the conversion date.

What is the conversion period?

From the conversion date, explained in the name of the security, the saver starts to receive the monthly income obtained from contributions and income. This value is then adjusted monthly by inflation, in order to preserve purchasing power, until the end of the 20 years of payments provided for in the modality.

How do I invest?

The interested party can make a simplified registration on the Investor Portal, or directly seek the intermediation of a bank or brokerage.

Can I apply resources via Pix?

Yes. However, this modality is currently only available to investors who carry out the simplified registration. Other financial institutions may join this system in the future.

Can I redeem RendA+ Treasury before completing the accumulation period?

Yes, it is possible to dispose of the securities before the deadline, provided that the grace period of 60 days after the purchase of the securities is respected. The option is useful in case of any emergency need, or lack of interest in maintaining the investment, although these reasons are not a prerequisite for the sale — it just depends on the investor’s will. However, attention is needed, as the securities are subject to market marking, that is, the sale price fluctuates according to market conditions. Therefore, it may not be advantageous to redeem it ahead of time.