FICA: The Portuguese Audiovisual Funds
by CARTOON (European Association of Animation Film)
- Luis de Matta Almeida, Director of Zeppelin Filmes Lda., gives us a brief overview on the activity of FICA, the Portuguese Audiovisual Fund. He explains when it was created, what are the objectives and which works are eligible for the Fund.
Working in animation since 1987, Luis da Matta Almeida,
is CEO,
Producer and Director of Zeppelin Filmes Lda.,
an animation company based in Portugal.
He has produced many films and series,
which won 72 international awards, including
the Cartoon D’Or 2000, and he has sold
them in most countries of the world. He is a
Cartoon Board Member, Vice-President of the
Portuguese Animation Producers’ Association
and President of Portuguese Animation House.
When was the Fundo de Investimento para o Cinema e Audiovisual (FICA) created?
FICA is a capital investment Fund constituted as
a special Fund for cinematographic and audiovisual
investment. FICA invests, requiring return
on that investment. The Fund assumes the nature
of a private collective investment scheme established
contractually between its participants.
The Fund initiated its activity on 23 July 2007,
which was when the first Assembly of Participants
took place and designated ESAF – Espírito Santo
Fundos de Investimento Imobiliário, as the Fund’s
Management Entity and BES – Banco Espírito Santo,
as its depository.
Which are the objectives of FICA?
The Fund aims to invest in cinematographic, audiovisual,
and multiplatform works with the purpose
of promoting and developing cinematographic and
audiovisual arts in Portugal.
The Fund advocates
interventions geared towards strengthening the
sustainability of cinematographic and audiovisual
activities, strengthening the creative and competitive
capacity of small and mid-size companies. The
Fund maximises the return on investment for the
Fund’s Participants through profit sharing in the
projects in which it invests and through valuation
of the capital participations in the Companies in
which it invests.
Is it possible to submit applications
with foreign co-productions? Are these
co-productions subject to any percentage?
Yes. There is no pre-defined percentage for co-productions. The Assembly of Participants deliberates
on a case by case basis, keeping in mind the weight
of the national elements involved in the project.
Which is the duration of the Fund?
The Fund has a duration of seven years, counted
as of the beginning of its activity. The first five
years correspond to an investment phase and the
remaining two years to a disinvestment phase.
Who are FICA’s shareholders?
Currently, there are five participants: IAPMEI
– Instituto de Apoio às Pequenas e Médias
Empresas e ao Investimento, represented at the
Assemblies of Participants by ICA - Instituto do
Cinema e Audiovisual (Institute for Cinema and
Audiovisuals), which holds 40% of the Fund’s capital;
ZON Multimédia, Serviços de Telecomunicações
e Multimédia, S GPS, S.A. , with a 30% participation
in the Fund’s capital; S IC – Sociedade Independente
de Comunicação, S.A. which holds 12% of the Fund’s
capital; T VI – Televisão Independente, S.A. , with
a 12% participation in the Fund’s capital; RTP –
Radiotelevisão Portuguesa, which holds 6% of the
Fund’s capital.
How much is the Fund’s capital?
Currently, the Fund has a capital of €83 million.
How does the Fund operate practically?
The Fund’s investments may be direct (between
60% to 80% of the Fund’s budget) or indirect
(between 40% and 60% of the Fund’s budget).
There are direct investments to cinematographic
and audiovisual productions and indirect investments,
materialized through the Fund’s participation
in audiovisual companies, sharing risks
and offering benefits beyond funding. The Fund’s
indirect investments, are based on multi-annual
production plans to develop corporate strategies.
Which works are eligible for the Fund?
The Fund’s policy is based on diversification. The
works can be feature films; television documentaries;
fiction or animation television series or
documentary series; TV films. The breakdown of
the Fund’s investments by the different types of
productions and activities should observe the following
proportions:
a) Television or multiplatform works
45% to 50%, to be distributed as follows:
i) A nimation — 10% to 15%;
ii) Documentaries — 10% to 15%;
iii) Fiction S eries — 60% to 70%;
iv) T V films — 10% to 15%;
b) Cinematographic works
50% to 55%, to be distributed as follows:
i) Fiction — 80% to 90%;
ii) A nimation — 10% to 20%.
Which are the requisites the candidates
must have to benefit from the FICA Fund?
First of all the beneficiary companies must be
registered in the Register of Cinematographic and
Audiovisual Companies, kept by ICA and be independent
production companies. The companies
must be small or mid-size companies and must
have complied with their respective obligations
towards the Fund or ICA, and be in good standing
with the tax authorities or social security.
There are some limitations. First of all companies
or group of companies, cannot receive more
than one third of the annual indirect investments. Secondly, the projects, in any category, cannot
benefit from more than 10% of the Fund’s annual
budget. No company or group of companies that
are in a relationship may benefit from amounts of
more than 20% of the Fund’s investment during a
particular year or above 15% of those investments
in two consecutive years.
There is no pre-defined type of project that is
preferred. The analysis is carried out project by
project. The evaluation is made following a technical-
artistic perspective, as well as from an appropriate financial investment plan.
How does the Fund recoup the investment?
The funding granted by the Fund is recovered
through its participation in the operating income
of the works, proportional to its investment, as
well as through the valuation of other assets
linked to indirect investments.
Which are the deadlines to submit applications? It is possible to submit applications during the first five years of the Fund’s duration. The applications must be presented at the ordinary Assemblies of Participants, at least thirty days prior to the date of the assemblies that take place generally every two months.
Cartoon Master Munich, Germany, June 2008
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