Investment policy 2008
PREVI Futuro
1. Closed Complementary Pension Plan Entity:
Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI
2. Year: 2008
3. Minutes of the Deliberative Board / Date of Meeting:
Minutes 216, 11 / 28 / 2007
4. Benefit Plan: Benefit Plan PREVI Futuro
5. Actuarial Goal of Benefit Plan:
INPS indexation plus 5,75 %, relative to Provisions of Part I and to Mathematical Provisions of Benefits Conceded in Part II.
6. AETQ - Statutory Technically Qualified Administrator:
6.1 Fixed Income: Cecília Garcez and José Reinaldo Magalhães
6.2 Variable Income: Cecília Garcez and José Reinaldo Magalhães
6.3 Real Estate: Cecília Garcez and José Reinaldo Magalhães.
6.4 Financing: Cecília Garcez and José Ricardo Sasseron
7. Mechanism of Policy Information to Participants: (x) Electronic Means (x) in Printintig
TABLE SUMMING UP THE INVESTMENT POLICY OF EFPC, ACCORDING TO REGULATION ANNEXED TO RESOLUTION CMN 3456 / 2006
8. Allocation of Funds
9. Maximum Diversification Limits
10. Management of Funds
The most important changes refer to PREVI Futuro. The main one is the possibility of investing this year, not only 10 % (like in 2007), but up to 30 % of total investments in variable income. In PREVI Futuro, profitability constitutes one of the pillars for the formation of individual savings, which will determine the benefit to receive upon retirement. Since the profitability of fixed income investments has been dwindling during the last few years, the perspective of adequate benefits, in the future, will depend upon increasing investments in funds with a higher income within the total portfolios.
It is worth pointing out that the 30 % earmarked for variable income result from an analysis of risk and returns and of studies about the improvement of the composition of portfolios, in addition to responding to complying with a request from the participators. According to an inquiry made two years ago, 80 % were in favor of investing in variable income. In the present economic scenario, in which a reduction in the interest rates and the stabilization in the income of corporations is predicted, the option for that kind of investment has proved to be the most adequate one.
11. Contracting Criteria - Administration of fixed and variable income portfolios
The criteria for contracting external mangers for the administration of variable income portfolios are classified as follows:
a) Qualitative - General data about the asset administration company:
- Name and a brief résumé of shareholders, managers and analysts;
- Portfolio of clients;
- Experience;
- PREVI former experience with that company;
b) Quantitative - Financial data of assets managed by the company:
- Total assets managed by the company, broken down by types;
- Assets from institutional investors managed by them;
- Assets under their management broken down by type of investments (portfolios and volumes);
- Profitability of investments.
Considering the specific characteristics in each case, the several elements will be considered in order to identify the administrator with the best profile to manage the funds. In each contracting, after the compilation and consolidation of data, the proceedings will be submitted to the Executive Board for their deliberation. In each contracting, after the compilation and consolidation of data the proceedings will be submitted to the Executive Board for deliberation.