As
Administering Institutions of
Mutual Equity Funds

CIRCULAR LETTER No. 1.412

CENTRAL BANK OF BRAZIL

As a result of the provisions of Circular No. 1.023, of 15.04.86, we clarify the following:

a) with a view to adapting to the provisions of the aforementioned Circular, the Funds must allocate 75% (seventy-five percent) of the net incoming resources - understood as the difference between the value of new inflows and the value of redemptions - to investment in fixed-income securities, and are not prevented from purchasing shares, whether using the remaining net resources or in position-swap operations;

b) formalized commitments to subscribe to shares in a public offering assumed prior to the issuance of the aforementioned normative act may be honored regardless of the aforementioned adaptation;

c) for the purpose of verifying compliance with the provisions of item "a" of the referenced Circular, the current value of unavailable investments arising from the transformation/merger of the extinct Fiscal Funds into Mutual Equity Funds, in the form of Resolution No. 1.023, of 05.06.85, shall not be counted.

Brasília (DF), 21 May 1986

DEPARTMENT OF CAPITAL MARKET
NORMS
Sérgio Darcy da Silva Alves
ACTING HEAD

This text does not replace the one published in the DOU and in Sisbacen.

Circular Letter No. 1.412, of 21.05.86.