GICP11

What it is

GICP11 replicates the ITDB DI Quality High Beta — Índice Teva Debêntures DI Quality High Beta, a portfolio of corporate bonds indexed to the DI overnight rate plus a credit spread, weighted toward bonds with longer maturities and strong credit quality. Think of it as a basket of company IOUs, all paying Brazil’s benchmark overnight rate plus a bonus, bundled into a single stock-exchange share.

The index selects bonds with maturities between 730 and 3,650 days — two to ten years — to make the portfolio more sensitive to rate and credit movements; it screens out any bond priced below 80% of face value, and excludes issuers in financial distress or default. Constituent weights blend issuer size (50%) and duration (50%), balancing broad market representation against interest-rate sensitivity.

Who owns it

The ETF was created by Genial Investimentos, a Brazilian brokerage and investment platform, which launched GICP11 as its first ETF with an opening investment of approximately R$ 34 million (≈ US$ 6.5 million at the current rate). Genial reports R$ 250 billion in assets under custody, 2 million clients, more than 20 years of operation, and is among the five largest brokerages in Brazil.

The fund’s units are held by approximately 264 retail and institutional investors; ownership is fully dispersed, with no controlling unitholder structure. The management and administration are contracted to specialist firms — see “Who runs it” below.

Who runs it

The fund is administered by Banco BNP Paribas Brasil S.A. and managed (day-to-day portfolio decisions) by Plural Gestão de Recursos Ltda. BNP Paribas Brazil holds the official CVM administrator licence (Ato Declaratório CVM nº 4.448, 1997); Plural Gestão holds CVM licence nº 10.817, granted in January 2010.

Genial Asset, the brand name of Genial’s asset-management arm, sponsors and distributes the product.

Rafael Zlot, CIO of fixed income at Genial, was the public face of the ETF’s launch. The index itself is calculated and maintained by Teva Indices, which describes itself as a pioneer in providing indices for the Brazilian ETF market.

The money, in plain words

GICP11 is not an operating company, so there is no revenue line or profit margin to report; returns flow directly to unitholders through the rising value of the basket. Each unit costs around R$ 10 — among the lowest entry points in the Brazilian ETF market — and the annual management fee is 0.50%, with no performance fee.

The index underlying the ETF has historically delivered returns above the CDI (Brazil’s benchmark overnight rate) with low volatility, and the structure carries no come-cotas (the periodic advance tax charged to most Brazilian fund types), no IOF, and no performance fee — a structural tax advantage over comparable traditional funds. Since its October 2025 launch, total AUM has grown from roughly R$ 34 million to R$ 47.3 million (≈ US$ 9.1 million), a gain of about 39% in net inflows and price appreciation combined (our calculation).

What it is doing now

Secondary-market trading began on 9 October 2025, making GICP11 less than a year old at the time of writing. The index’s most recent rebalancing took place on 1 April 2026, refreshing the constituent bond list according to the eligibility rules.

Average daily turnover of around R$ 132,000 (≈ US$ 25,400) is modest, reflecting the fund’s early-stage profile and its still-small unitholder base of ~264 accounts.

The assets under management of Brazilian fixed-income ETFs as a category grew more than 320% between 2019 and the fund’s launch, the tailwind Genial is counting on to build scale in GICP11.

What to watch

• AUM growth and liquidity. At R$ 47 million and ~264 unitholders, the bid-ask spread and daily volume are thin. Scale is the single biggest variable for whether the fund becomes self-sustaining.
• Brazil interest rates. The portfolio is long-duration — bonds of two to ten years — so a sustained rise in Brazilian rates would mark down the basket’s price, while a rate-cutting cycle would lift it.
• Credit quality of the basket. The index screens out distressed bonds, but a wave of corporate defaults in Brazil’s private-credit market would still hurt. Monitoring the April 2026 rebalancing constituents for any credit deterioration is key.
• Fee waiver period. The fund regulation allows Plural Gestão to absorb certain operating costs for the first 24 months from the class’s constitution date; once that period ends, total expense ratios could rise modestly.
• Regulatory environment. The fund is governed by CVM Resolution 175/2022; any change to the come-cotas exemption for ETFs or the DI-linked bond tax treatment would directly affect the product’s competitive edge.

This is news, not investment advice.