Sovereign Fund of Brazil

Brazil US$ 5.3 Billion Non-Commodity

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Established: 2008
Transparency Rating: 9
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Firm Investment Style: Mixed
Entity Structure: Fund
Population Est.: 201 million – 2013
Wealth Per Capita Est.: $26

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Sovereign Fund of Brazil

Summary
The Fundo Soberano do Brasil (FSB) was created by Brazilian Law 11,887/2008 on December 24, 2008.

Background
On December 30, 2008 R$ 14,243,999,592.36 was allocated to the Fundo Soberano do Brasil through an issuance of 10,201,373 domestic bonds issued by Brazil’s National Treasury. On that date, FSB invested the full amount in the Fundo Fiscal de Investimento e Estabilização (Fiscal Fund for Investment and Stabilization) – FFIE, according to the Law 11,887/2008. The FFIE is a mutual fund that is registered at the Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários – CVM) which has the FSB as its exclusive investor.

At the end of 2012, the Fundo Soberano do Brasil (FSB) was used to cover the budget shortfall. R$ 12.5 billion was moved from the FSB to the National Treasury.