Circular No. 1,077

CIRCULAR No. 001077 ------------------ We inform that the Board of the Central Bank of Brazil, in view of the provisions of item II of Resolution No. 1,199 of 10.10.86, in paragraphs 1 of art. 1, sole paragraph of art. 5 and 2 of art. 22 of the Regulation annexed to the aforementioned Resolution, and in item II of Resolution No. 1,022 of 05.06.85, decided to establish: a) the investments of the Short-Term Investment Funds must be represented by the securities specified below, in the following proportions: I - 40% (forty percent), at minimum, in Central Bank Bills; II - 30% (thirty percent), at maximum, individually or cumulatively, in Bank Deposit Certificates and Bills of Exchange accepted by a credit, financing and investment company, duly registered with the Central Custody and Financial Settlement of Securities (CETIP), or maintained in book-entry form, and National Treasury Bills; and III - 30% (thirty percent), at maximum, in securities forming part of the portfolio of institutions authorized to carry out repurchase transactions, linked to repurchase commitments assumed by them, for settlement within a maximum period of 28 (twenty-eight) days counted from the assumption of the commitments; b) the investments of these Funds in the securities mentioned in items II and III of the preceding letter may include those issued, accepted or co-obligated by companies linked to the managing institution, provided that the conglomerate to which the managing institution belongs is perfectly identified through the name of the Fund; c) the redemption of shares of the aforementioned Funds shall be processed on the 1st (first) business day following receipt of the request (D+1); d) the amendment of the regulation of Mutual Equity Funds providing for the issuance of bearer shares may only be carried out after complementary rules on the matter have been issued by the Central Bank and the Federal Revenue Secretariat. 2. This Circular shall enter into force on the date of its publication. Brasília-DF, 13 October 1986 Luiz Carlos Mendonça de Barros Director