Circular No. 1.411

CIRCULAR N. 001411 ------------------ To the Institutions Administering Short-Term Investment Funds and Fixed-Income Mutual Funds We inform that the Board of Directors of the Central Bank of Brazil, in view of the provisions of item II of Resolution n. 1.199, of 10.10.86, in paragraphs 1. of article 1., sole paragraph of article 5. and 2. of article 22 of the Regulation annexed to the aforementioned Resolution, and in article 12 of the Regulation annexed to Resolution n. 1.286, of 20.03.87, decided: a) the investments of Short-Term Investment Funds must be represented, individually or cumulatively, by the following securities, duly registered in the Special System of Settlement and Custody (SELIC) or in the Central Custody and Financial Settlement of Securities (CETIP), belonging to the respective portfolios or forming part of the portfolio of institutions authorized to carry out repurchase operations, linked to repurchase commitments assumed by them, for settlement within a maximum period of 29 (twenty-nine) days counted from the assumption of the commitments: - Financial Treasury Bills, observing the minimum proportion of 70% (seventy percent); - other federal public debt securities; - state and/or municipal debt securities; - bank deposit certificates; - bills of exchange accepted by a credit, financing and investment company; - bills of exchange accepted by a commercial bank, issued as a result of credit operations guaranteed by pledge of "warrants"; - debentures and real estate bills, exclusively if forming part of the portfolio of institutions authorized to carry out repurchase operations; b) Short-Term Investment Funds may, regardless of the limit referred to in article 10 of the aforementioned Regulation annexed to Resolution n. 1.199, of 10.10.86, and observing the provisions of item "a" of this Circular, invest resources in securities issued, accepted or co-obligated by the administering institution or companies linked to it, provided that such faculty is expressly provided for in the respective regulation, a provision that must be arranged on the occasion of the first amendment to be made therein; c) the redemption of shares of Short-Term Investment Funds must be effected on the same day or on the 1. (first) business day following the receipt of the request at the headquarters or branches of the administering institution; d) Fixed-Income Mutual Funds may invest resources in securities and marketable securities issued, accepted or co-obligated by the administering institution or companies linked to it, provided that such faculty is expressly provided for in the respective regulation, a provision that must be arranged on the occasion of the first amendment to be made therein. 2. This Circular shall enter into force on the date of its publication, and item "a" of item 1 of Circular n. 1.274, of 29.12.87, and Circulars n.s 1.147, of 20.03.87, and 1.279, of 14.01.88, are revoked. Brasília-DF, 29 December 1988 Keyler Carvalho Rocha Wadico
Waldir Bucchi Director Director