The Bradesco IMA-B ETF (IMBB11) is a Brazilian exchange-traded fund designed to track the performance of the IMA-B, an index calculated by ANBIMA to represent a portfolio of Brazilian inflation-linked government bonds.

Managed by Bradesco Asset Management, the ETF trades under the ticker IMBB11 on the B3 and provides diversified exposure to NTN-Bs, currently known as Tesouro IPCA+ with semiannual interest payments. Classified as a fixed-income ETF, IMBB11 follows a passive management strategy.

The fund seeks to replicate, before fees and expenses, the performance of the IMA-B. At least 95% of its assets must be allocated to financial instruments directly related to the benchmark or to exposures synthetically replicated through derivatives.

By holding inflation-linked government securities across different maturities, IMBB11 provides broad exposure to Brazil's IPCA-linked sovereign debt market and multiple points along the country's real yield curve.

Composition / Exposure Profile

IMBB11 provides exposure primarily to:

• Brazilian inflation-linked government bonds (NTN-Bs / Tesouro IPCA+ with semiannual interest payments).

• Government securities across different maturities.

• Brazilian real interest rates.

• Inflation measured by the IPCA.

• Brazil's domestic sovereign fixed-income market.

The IMA-B represents a theoretical portfolio of Brazilian inflation-linked government securities. To qualify for inclusion, NTN-Bs must have more than one month remaining until maturity and must have been placed in the market through public offerings conducted by the Brazilian National Treasury.

Unlike benchmarks such as the IMA-B 5 and IMA-B 5+, which segment inflation-linked bonds according to maturity, the broader IMA-B includes eligible NTN-Bs across different maturities. IMBB11 therefore provides more comprehensive exposure to Brazil's real yield curve.

Structure and Costs

IMBB11 shares trade on the secondary market on the B3 during regular trading hours, with a standard trading lot of one share. The fund charges an annual management fee of 0.20% and does not charge a performance fee.

Banco Bradesco serves as the fund's administrator, while Bradesco Asset Management is responsible for portfolio management.

Coupon payments and other returns generated by the underlying government securities are incorporated into the fund's net asset value rather than distributed to shareholders on a recurring basis.

Because the portfolio consists of Brazilian government securities denominated in reais, IMBB11 does not provide direct foreign currency exposure. The B3 classifies IMBB11 as an ETF whose market price does not directly fluctuate with foreign exchange rates.

History and Evolution of the ETF

The Bradesco IMA-B ETF (IMBB11) was launched in 2019 by Bradesco Asset Management, expanding the range of fixed-income ETFs available in the Brazilian market. Its shares began trading on the B3 that year.

IMBB11 was introduced alongside B5MB11, another Bradesco Asset Management fixed-income ETF. While IMBB11 tracks the broad IMA-B portfolio, B5MB11 was designed to track Brazilian inflation-linked government securities with maturities longer than five years.

Since its launch, IMBB11 has provided exchange-traded exposure to a diversified portfolio of Brazilian inflation-linked government bonds. Its performance has reflected different cycles in Brazil's real yield curve and has been influenced by changes in inflation expectations, monetary policy, fiscal conditions, and perceptions of Brazilian sovereign risk.

Additional Information

ETF Bradesco IMA-B Fundo de Índice (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $904.49 million.

Over the past 12 months, ETF Bradesco IMA-B Fundo de Índice recorded a return of 12.18%, with its price trading between $136.56 and $154.50 during the same period.

The ETF is traded under the ticker IMBB11.