ne of the aspects widely recognized as being among the most significant regarding Pension Funds is the financial health of the Benefit Plans. The so called, and highly desirable, “actuarial balance” is obtained from the consistency of the investments policy, with assets valuation, combined to the quality of the methods and premises used for the calculation of the liability; that is to say: PREVI ’s obligations towards its associates.

It is with a great deal of satisfaction that the Board of Directors imparts the 2004 results, when we have reached a second consecutive year’s surplus, always vouching for the solidity of our plans, assuring, therefore, peace of mind for our sponsors and associates. We are aware that no financial scenario is the final one, however, the continuity of a serious line of work points towards a promising future.

Constant measures are taken in order to make PREVI the best Pension Fund for its associates. The initiatives have clear impact on the administrative sector, as well as investment management, and on the effort to perfect the Benefit Plans. To PREVI’S daily life have been incorporated several new policies regarding internal control, operational and market risks evaluation, selection and qualification of personnel, follow-up of companies and real estates, accounting criteria, customer services and communications, among many others. Those are improvements that project into the future.

Besides that, there has been progress on real estate financing, with the concluding of the Nova Carim’s enrollment project and the rights to use the FGTS (worker’s income fund) for the clearing of ban debts. We have introduced a new model of Simplified Loan, with the creation of the 10-istalmments-per-yer amortization system. We also carried on the updating of our Plans’ Regulations according to the new portability institutions. And we have celebrated the growing demand for adhesion to the PREVI Futuro Plan.

As for the external scenario, in the institutional sector significant progress was made that affected the whole complementary social security system. From 2005 onwards, Pension Funds will finally stop paying government income taxes over their investments' results, what represents to PREVI savings in the amount of R$68 million a year, approximately. We also testified the amendment to the MP (Provisional Measure set by Law ) that created Previc (Complementary Previdence National Superintendence), organ that will now guarantee more stability and agility on the fiscalization and regulation of pension funds. And last but not least, there was the approval of PREVI’s Conformity Plan that will grant tranquility for the management of our investments portfolio.

We understand that there are still many issues to be solved, which will demand joint effort and dedication; especially once many of them do not depend solely on our part. But we are confident on reaching the solutions.

With this report we aim to reach all of our colleagues and expose, with the most transparency possible, the results of our work and what has been done in the name of our associates and of Banco do Brasil. On it’s 100th anniversary, PREVI has shown power and youth. May this same spirit prevail over the upcoming decades.