Statements and investments
Non-compliance and Justifications
December 2007
VII- Non-compliance with Resolution CMN n° 3,456 and Respective Justifications
BENEFIT PLAN 1
Investment Limits
VARIABLE INCOME
The EFPC funds invested in the several portfolios that comprise The Variable Income Segment are subject to the 50 % limit of the Guaranteeing Funds in the case of other plans (art. 21, subsection 1)
• 69, 08 %
Stock Market Shares - Not Classified - relatively to investments in stock market shares, 35 % in the case of shares issued by companies other than those included in the other portfolios. (art. 21, subsection II, paragraph I)
• 46, 41 %
BY ENTITY
Diversification Requisites
VARIABLE INCOME
Total investments in any particular corporation cannot exceed 20 % of voting capital (art. 22, subsection I, paragraph a)
Total investments in any particular corporation cannot exceed 20 % of the respective total capital (art. 22, subsection I, paragraph b)
Total investments in shares of any particular company added to total subscription bonds and convertible debentures cannot exceed 5 % of Guaranteeing Funds. That limit, however, can be increased to 10 % in the case of shares representative of percentages equal or above 2 5 of IBOVESPA, IBX, IBX - 50, FGV - 100 IGC or ICE (art. 22, subsection I, paragraph c).
REAL ESTATE INVESTMENTS
In the case of the Portfolio of Real Estate Funds, total investment in any particular Real Estate Investment Fund cannot exceed 25 % of the PL of that Fund (art. 31, subsection II, paragraph b).
JUSTIFICATIONS
521 PARTICIPATIONS
(art. 22, subsection I, paragraph c): This is the case of a SPE (Specific Purpose Corporation), a vehicle of participation in the electric energy companies CPFL Energia and Neoenergia. The restructuring of the share holders' composition of 521 Participations is under consideration, and once approved the non-compliance situation will be regularized.
LITEL
(art.22, subsection I, paragraph c): this is not a case of non-compliance, according to article 55, subsection I, of the Annex to Resolution CMN 3,456 of 06 / 01 / 2007, given the appreciation of assets in accordance with their economic value, effected since December 2002, as stipulated in Instruction CVM 340 / 2000, revoked by Instruction CVM 438 / 2006 concerning shares owned through Funds, and Resolution GCPC n° 22 / 2006 concerning shares kept in individual portfolios.
OTHER:
There are no cases of non-compliance, according to Compliance Plan approved by Conselho Monetário Nacional (National Monetary Council) in November 24, 2004.