PREVI :: Annual Report 2008

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: Who we are, Mission, Vision, Values Composition of the Management

Investments Governance Management Social Security

Socioenvironmental responsibility Customer Service Risk Planning & Management

Benefit Plan 1 PREVI Futuro Benefit Plan CAPEC

Balance Sheet Result Statement Financial Flow Demonstration Asset and Result Statement - Benefit Plan 1 Asset and Result Statement - PREVI Futuro Benefit Plan Asset and Result Statement - Capec Benefit Plan

Independent Auditors Audit Committee Deliberative Body

Home :: Investment policy : Plan 1 - Resource Management

Plan 1 – Resource Management

The global financial crisis triggered by the mortgage issue in the US got much worse in the second half of 2008. Internally, considering the solid macroeconomic bases, the crisis had an important impact on credit and external accounts. The government and the monetary authorities have been taking measures to inject liquidity into the system and to drive resource circulation, but the economic activity is showing signs of deceleration in production and consumption.

Faced with this unfavorable conjuncture, the importance of the planning tools PREVI has been using has been reinforced, since while building the macroeconomic scenarios and making ALM analyses, PREVI considered several panoramas - optimistic, basic, pessimistic, and stress - to simulate the solvency and liquidity conditions of Benefit Plan 1 and to subsidize the construction of the 2009-2015 Investment Policy.

As such, the Investment Policy for Plan 1 was based on the need to have sufficient resources available for payment flows, to cost the plan, and to be in compliance with the Qualification Plan, as approved by the SPC in Resolution # 3121/2003. For 2009 and 2010, PREVI adopted the premise that Plano 1’s pension obligations will be covered both by the Fixed Income segment and by the abolishment of Variable Income. As of 2011, based on the need to be in compliance with the Qualification Plan and on the possibility the stock market will recovery, sales will focus solely on Variable Income, allowing this segment to reach, in 2014, 50% of the guarantee resources, as determined by the law.

Top | Next