Resolution No. 1,118

RESOLUTION No. 001118 ------------------- THE CENTRAL BANK OF BRAZIL, in accordance with art. 9 of Law No. 4,595, of 31.12.64, hereby announces that the NATIONAL MONETARY COUNCIL, in a session held on this date, in view of the provisions of Laws No. 4,728, of 14.07.65 and No. 6,385, of 07.12.76, R E S O L V E S: I - To amend item I of art. 10 and its sole paragraph of the Regulation annexed to Resolution No. 1,022, of 05.06.85, which governs the incorporation and operation of Mutual Investment Funds, in the form of open-end condominium, which shall have the following wording: "Art. 10 ................................................... I - 50% (fifty percent), at minimum, of the total value must be represented by non-redeemable shares, acquired on stock exchanges or by subscription, including new issues duly registered for public offering; II - ....................................................... Sole paragraph. For the purpose of complying with the provisions of item I of this article, it shall be permitted that daily positions in shares be at a minimum of 20% (twenty percent) of the total value of investments, provided that the average of the last 360 (three hundred and sixty) days is at a minimum of 50% (fifty percent) of the total value of investments." II - The Central Bank and the Securities Commission, by joint decision, may amend the requirements for the composition of investments of Mutual Equity Funds established in art. 10 of the aforementioned Regulation. III - This Resolution shall enter into force on the date of its publication. Brasília-DF, 4 April 1986 Fernão Carlos Botelho Bracher President