Explanatory notes
08. Fixed Income
The Fixed Income Portfolio in December 31st 2007 and 2006 shows the following figures:
The turn over of the Fixed Income Portfolio, with a variation of R$9,269,268 thousand, presented the following composition: investments of R$17,026,675 thousand; realizations R$17,754,325 thousand; asset variation R$6,003,345 thousand; receivables R$198,318 thousand; and provision for losses (adjustment of debentures) R$204,745 thousand.
The investments in Federal Government Securities in PREVI's own portfolio were raised to R$11,609,803 thousand (R$4,900,195 thousand in 2006) propelled by benefits in the Investment Account (reinvestments not subject to CPMF). The means originated from inflows in PREVI's cash flow, such as rents, dividends, sale of Variable Income assets. In the latter case, this was made on order to help the adjustment of that segment's percentage into the limits required by Resolution CVM n° 3,456 of 2007. The investments are allocated in LFTs (National Treasury's Financial Bills), indexed to the SELIC rate; NTN-B (National Treasury's Notes - B series), indexed according to the rate of inflation IPCA; NTN-C (National Treasury's Notes - C series), indexed to the IGP-M; NTN-F (National Treasury's Notes - F series), with pre-fixed rates; and LTNs, (National Treasury's Bills) with pre-fixed rates.
In Investments in Financial Institutions are registered CDBs and quotas in Investment Funds, of which 97,4% belong to Benefit Plan 1.The remainder 2,6% are distributed between Plano PREVI Futuro (BB Maxi) and the Savings Fund Portfolio (BB Capec).
A part of the shares of Litel Participações / Vale and of the 521 Participações / CPFL / Neoenergia / Itapebi was acquired last year through the exclusive Investment Fund BB Fixed Income IV. Such shares remain allocated in that Fund, despite representing Variable Income assets. The revaluation of those assets, in accordance to economic criteria, positively impacted the Fixed Income portfolio with R$ 1,379,496 thousand, as per the table below:
It was recorded under provision for losses the total volume of R$ 1,158,319 thousand (R$ 953,573 thousand in 2006) relative to debentures of the companies Embaúba, Invesc, Teka and Hopi Hare acquired during the period 1984-1999.
In accordance to Article 8 of Resolution CGPC n° 4 of January 30th, 2002, the values of the securities held in its own portfolio and those allocated in exclusive Investment Funds, classified as "Securities for Negotiation" and "Securities to keep until maturity" (by maturity dates, in years) are indicated below: