PREVI :: Relatório Anual 2009

from the Executive Board from the Deliberative Body from the Audit Committee from Plano 1's Consultative Council from PREVI Futuro's Consultative Council

PREVI: About Us, Number of members Mission Statement, Vision, Values Organizational Structure

Investments Governance Social Security

PGA Customer Service Social-Environmental Responsibility People And Processes Risk Planning And Management

Benefit Plan 1 Benefit Plan Previ Futuro Capec plan PGA Risk Assessment Criteria General SER Guidelines

Statement of Financial Position Result Statement Financial Flow Demonstration Asset And Result Statement - Benefit Plan 1 Asset And Result Statement - Benefít Plan PREVI Futuro Asset And Result Statement - Capec Benefit Plan

Independent auditors Audit Committee Deliberative Body

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Message from the Executive Board

2009 was great

The year 2009 represented a very special moment for PREVI. After the global financial crisis shook 2008, there were, naturally, doubts regarding the rhythm of economic recovery and, consequently, doubts regarding the performance of PREVI’s investments.

However, while the beginning of the year required caution and careful planning to handle a possible prolonged recession, positive signs began consolidating during the middle of the year, especially concerning the Brazilian economy. From that moment on, there were constant surprises: the internal market sustained consumption, which in turn generated the comeback of employment and investment.

It is worth mentioning the role of public banks, especially Banco do Brasil, which all closely met government guidelines and sustained credit offer in the most critical moments, thus acting as a lever to recovery.

Three factors stood out in the business environment.

The first one was stabilizing inflation and maintaining the lowest interest rate in Brazilian recent history. On the one hand, this element kept fixed income profitability at historically low levels; on the other hand, it was critical for resuming credit and investments.

The second factor was the recovery of the Stock Exchange. Few analysts (if any) could foresee that the Bovespa index would rise from 30 thousand points to 68 thousand points in just 12 months. The performance was a reward for companies that were properly equipped to face the crisis, and a very strong sign of investor trust, particularly that of foreign investors, in the future of local economy.

The third factor was the increasing attractiveness of the real estate market. With lower interest rates (that facilitate long term financing and modify the perceived value of rents), real estate has increased in value. Besides, the perspective of sustained growth encourages investors, who realize the growing demand for new housing, offices, and shops.

The combination of these factors brought relief to all. And the long term investment allocation strategy adopted by PREVI was rewarded once again, with an average profitability well above our actuarial goal. For Plan 1, this represented substantial surplus recovery. For the PREVI Futuro Plan, it represents increased savings value accumulated in higher-than-expected levels. In the long run, this projects better retirement conditions.

For these and other reasons presented in this Annual Report, the Board of Directors feels rewarded by the 2010 results. This is our primary responsibility: delivering good results.

The Board of Directors

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