Dear Participation Unit Holders, visitors and friends;
Some decisions have to be made when things don’t flow as expected.
Due to the new Portuguese Tax Law on Stock Markets, it is not approved yet but will be soon, all stock holders must pay 20% of the profit from stocks selling. Till now, any stock held for more than 1 year has profits free of charge, if held less than 1 year there is a tax of 10%. As PG Invest is a long term fund, and to avoid taxes all stocks were held more than 1 year. With that, i agree that the Fund loses some profit, but as a virtual fund all taxes related to it were paid from my personal account, that why the 5% admin fee.
With the new tax law, the fund will become less profitable and my expenses will increase drastically. I’m sorry but i won’t be running a Fund to lose money. That’s not the point of any investment.
All Participation Unit Holders will receive the correspondent part of earnings after the Fund is dismissed.
Unless the Tax Law is approved before 20 May, by the end of May i’ll dismiss it.
Now the good news (or at least not so bad):
As far as i know, this Law applies only to the Portuguese Stocks.
After the Fund dismiss, if anyone want to keep participating in PG Invest Fund i’m going to start from the very beginning the Fund but this time not investing on Portuguese Stock Market but on some International Funds. It will become a Fund of Funds.
This Fund will have a initial public offer of 5000 participation units with the value of 1 Euro each (5000 Euros).
However, this will only take place if the Tax Law does not apply to international stocks/ funds.
I take this post to let you know that the NAV on 20-04-2010 has been updated on my files and has a value of 1,2528 Euros (20,28%). Hope this increases by the end of May!
Sorry for this “goodbye”, but from the first day of this Fund, it was not an option to make the Fund Holders to loose money not even scam them. PG Invest is not a Ponzy nor a Scheme Pyramid.
If you have any question just contact me and i’ll gladly answer it or if you want to participate in the “new” Fund, please contact me on email@example.com (this mail is used to avoid spam).
As a final note…
Thank you everyone for your support!