A private equity fund linked to Fosun is attracting investors in Asia, especially in China, to invest in BCP and Fidelidade, owned by Fosun itself, with this investment being able to access the Golden Visa in Portugal.
In the presentation to investors to which Lusa had access, which is being carried out in China but also to investors from other Asian regions (such as South Korea and Singapore), The Aster Golden Future Portugal Fund establishes that investors must invest at least 500 thousand euros and meet the requirements to access the Golden Visa (This residence permit is no longer granted through the purchase of a house, but is granted for other investment activities, such as subscribing to investment fund shares.)
The presentation also provides information about Portugal, such as public services, private school costs and tax advantages, and indicates that it is easy for Chinese immigrants to integrate.
According to the document to which Lusa had access, the Aster Golden Future Portugal fund is managed by STAG Fund Management and has Fosun International Assets Management (a company of the Fosun group) as investment advisor. The depositary bank of the funds is BCP, the legal advisor is CMS and the auditor is Deloitte.
The fund says it invests in stable, low-risk financial products, such as bonds, which allow it to build up its capital.
The presentation to investors explains the capital allocation plan, which mainly involves investing in Fidelidade (60% of the value) and BCP (30% of the value) and the prospect of high rates of return (around 9 and 8%, respectively).
Administration costs are 3.5% per year.
Finally, as is usual in these venture funds, The filing says there is no guarantee that the investment strategy will work effectively and that each investor should evaluate their ability to invest.
Lusa has contacted the financial markets regulator, the Securities Market Commission (CMVM), asking whether it foresees conflicts of interest in a fund linked to Fosun investing in assets held by Fosun itself and having as custodian a bank of which Fosun is the main shareholder.
The CMVM responded that it is a venture capital fund and that it is registered (the public registry can be consulted) and that the CMVM is responsible for supervising, among other aspects, “compliance with the prudential and behavioural requirements applicable to management.” entities and the funds under management.”
The CMVM also cites the Asset Management Regime, which states that “the acquisition of capital instruments and debt capital instruments in companies with high development potential is considered venture capital investment, as a way of benefiting from the respective appreciation.”
The regulator also mentioned that, according to the Asset Management Regime, it is the responsibility of the fund management company to “avoid, identify, manage and monitor, at all times, potential conflicts of interest and ensure that participants are treated fairly, without prejudice to the corresponding supervisory powers of the CMVM.”
The STAG fund manager told Lusa that the management of the fund and investment decisions are “exclusively” its responsibility and that it “acts independently” in the “best interest of its investors and in compliance with current legislation and regulations.” It added that it analyses issues of conflicts of interest, looking after “the best interests of investors.”
Regarding Fosun, STAG said it “acts exclusively as investment advisor to the fund.”
“It is also noted that STAG complies with everything related to the identification, mitigation and ‘disclosure’ of potential conflicts of interest, always acting in the best interest of its participants, thus scrupulously fulfilling its fiduciary duties,” the company manager added.
Lusa also contacted Fosun (asking about conflicts of interest and whether it intended to reduce its stakes in BCP and Fidelidade), but the latter sent explanations to STAG because, it indicated, it only acts as a consultant to the fund.
BCP said it does not comment on matters related to clients and that its service as a depository bank “fully complies with all current regulations, particularly with regard to the identification and prevention and, where appropriate, strengthening the supervision of processes related to situations that in any way may indicate possible conflicts of interest.”
In Portugal, the Chinese group Fosun owns Fidelidade (85% of the capital), Luz Saúde (held by Fidelidade) and 5% of REN (through Fidelidade). It is the largest shareholder of BCP, with around 20%.
Fosun had around 25% of BCP’s capital, but at the beginning of the year it sold part of the shares it held and since then markets have speculated that the Chinese group is considering reducing its stake in the bank even further.
In recent years, the Fosun Group has accelerated the sale of assets to strengthen its liquidity due to its high debt (at the beginning of the year the conglomerate had a debt of 40 billion dollars, about 36 billion euros at the current exchange rate) and the pressure felt by the bond market.
A source close to the Chinese group told Lusa that it wants to remain a reference investor in BCP and that Fidelidade also maintains its commitment to the Portuguese market.
Source: Observadora
