The BTG Pactual IMA-B 5 P2 ETF (PACC11) is a Brazilian exchange-traded fund designed to track the performance of the IMA-B 5 P2 Index, an ANBIMA fixed-income benchmark composed of Brazilian federal government bonds indexed to the IPCA inflation rate, with remaining maturities of less than five years and additional portfolio maturity requirements.

Managed by BTG Pactual Asset Management, the ETF trades under the ticker PACC11 on the B3 and provides investors with exposure to the short- and medium-term segment of Brazil's inflation-linked sovereign bond market.

Classified as a fixed-income ETF, PACC11 follows a passive management strategy. The fund seeks to replicate the performance of the IMA-B 5 P2 primarily through investments in Brazilian inflation-linked government bonds, historically known as NTN-Bs and currently marketed to retail investors as Tesouro IPCA+ securities.

Because the benchmark focuses on shorter-maturity securities, it generally has lower sensitivity to changes in real interest rates than indexes concentrated in longer-duration inflation-linked bonds.

Composition / Exposure Profile

PACC11 provides exposure primarily to:

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

• Securities with remaining maturities of less than five years.

• Brazilian sovereign fixed-income securities.

• Inflation-protected investments.

• Shorter-duration inflation-linked bonds.

The portfolio consists predominantly of Brazilian federal government securities, with residual allocations permitted in other instruments according to the fund's investment policy.

The IMA-B 5 P2 is designed to measure the market-value performance of a portfolio of inflation-linked government bonds while applying additional requirements related to the portfolio's average maturity profile. This structure provides exposure to Brazilian inflation while generally maintaining lower interest-rate sensitivity than longer-duration inflation-linked bond strategies.

As a result, the ETF's performance is primarily influenced by inflation expectations, real interest rates, monetary policy decisions, and movements across Brazil's yield curve.

Structure and Costs

PACC11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are carried out by authorized participants, helping keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a total management fee of 0.19% per year, in addition to operational expenses associated with maintaining the ETF structure.

PACC11 does not charge a performance fee and does not make recurring income distributions. Income generated by the underlying securities is incorporated into the fund's net asset value. The ETF has an indefinite term.

History and Evolution of the ETF

The BTG Pactual IMA-B 5 P2 ETF was launched in 2024, beginning operations on November 1, 2024, to provide investors with exchange-traded access to a diversified portfolio of short- and medium-term Brazilian inflation-linked government bonds.

Since its launch, PACC11 has expanded the range of fixed-income ETFs available on the B3, providing another vehicle for systematic exposure to IPCA-linked Brazilian government securities.

Over time, the fund's performance is expected to closely reflect movements in the securities included in the IMA-B 5 P2 Index, with returns primarily influenced by inflation expectations, real interest rates, monetary policy, and changes across Brazil's sovereign yield curve.

Additional Information

BTG Pactual IMA-B 5 P2 ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $-.

Over the past 12 months, BTG Pactual IMA-B 5 P2 ETF recorded a return of 12.47%, with its price trading between $106.74 and $120.58 during the same period.

The ETF is traded under the ticker PACC11.