Sovereign Fund of Brazil

Brazil US$ 5.3 Billion Non-Commodity

Profile Directories

Sovereign Wealth Funds

Public Funds

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

Fund Details

Strategy & Objectives
The fund’s objectives are promoting investments in Brazil and overseas, generating public savings, mitigating the effects of economic cycles, and fostering strategic development projects at home and overseas.

Governance
The Deliberative Council of the FSB – CDFSB, which is composed of the Minister of Finance, the Minister of Planning, Budget and Management, and the Chairman of the Central Bank of Brazil – BCB, is responsible for approving the general guidelines and goals of FSB’s investments, while the Brazilian National Treasury is responsible for operating the FSB, as established by Decree 7,055/2009.

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.