FIXED INCOME
Fixed Income | Composition | Segmentation
Segmentation of Fixed income assets

For follow-up effects, the assets are divided in portfolios with targets and limits of established risks. The segmentation approved in the 2006-2012 Investment Policy was the following:

Government Securities Kept until Maturity date: long term Federal Government Securities.

Government securities for Negotiation: Federal securities, of several terms and indexation. Their objective is to take advantage of market opportunities.

Liquidity Operations with Financial Institutions: Applications in Financial Institutions (Bank Deposit Certificate and Committed Operations).

Private securities of non-Financial Institutions: Private securities of non-Financial companies (Debentures).

Other Fixed income Investments: Applications in specific niches of the Fixed income market, which interest is not superior to 25%.

Government Securities

Most of Fixed income investments (80.8%) is connected to Federal Government Securities. The segment performance is strongly influenced by the indexation of these securities.

TMS (Selic Average Rate)
IPCA (National Broad Index of Prices to Consumer)
IGP-M (General Price Index - Market)

Accounting classification of federal government securities

Of the total stock of federal government securities, approximately, 44.6 % is accounted by the security curve and classified in the category " Kept until maturity date ". They are composed by securities that pay biannual coupons: NTN-B (IPCA), NTN-C (IGP-M) and NTN-F (PRÉ). This is a prerogative given by the Resolution CGPC n.º 04/2002 to the pension funds, which must have financial capacity to carry out the above-mentioned securities until the end of their maturity date. The other federal government securities, around 55.4%, are rated at market price, daily, and are classified in the category " Securities for Negotiation ". It is composed in its majority by LFT.

Other Fixed income resources

Other securities that compose the segment of Fixed income debentures and Promissory notes, most of them acquired in operations of companies restructuring of which PREVI is a shareholder. These securities represent 10% of the Fixed income.