Fundo Soberano do Brasil
The Fundo Soberano do Brasil - FSB is a public fund, managed by the Ministry of Finance, and established by Law 11,887 in 2008, with the following purposes (article 1):
- Mitigating the effects of economic cycles;
- Generating public savings;
- Investing its resources in Brazil and abroad; and
- Fostering Country's strategic projects abroad.
The FSB resources could be provided from (article 4):
- Resources from the National Treasury corresponding to the annual budget allocation;
- Stocks exceeding the minimum necessary to maintain the control of the Government-owned companies, as well as other assets with patrimonial value;
- Returns from its investments;
- Government Bonds.
Redemptions from the FSB must be used to mitigate effects of the economic cycles (article 5).
The FSB's long term planning is supported by an institutional mission, a strategic view, a set of values that translate to society the purposes expressed in the article 1 of Law No. 11.887, of 2008 and also an investment philosophy that guides the asset allocation (Investment Policy – Annex I of CDFSB Resolution No. 11, of 2013):
"Managing long-term public savings, which allow the FSB to act, effectively, as an instrument of economic policy, aimed at mitigating the effects of economic cycles in Brazil"
"Consolidating until 2023, as an effective instrument to manage sovereign wealth and to mitigate the effects of economic cycles in Brazil"
Principles that Guide Management of the FSB assets
- Socio-environmental responsibility; and
"The search of resource allocations that match, on one hand, the maximization of the expected return, considering risk tolerance levels that are compatible with the long-term profile of the Fund, and on the other hand, the maintenance of adequate financial liquidity levels for the short run, aiming to act, timely and effectively, as an instrument of countercyclical economic policy."
Legislation – Only in Portuguese
Law No. 11,887, of December 24th, 2008;
Presidential Decree No. 6,713, of December 29th, 2008;
Presidential Decree No. 7,055, of December 28th, 2009;
Presidential Decree No. 7,113, of February 19th, 2010;
Resolution CDFSB No. 17, of September 22nd, 2014
Resolution CDFSB No. 14, of March 31st, 2014
Resolution CDFSB No. 13, of September 30th, 2013;
Resolution CDFSB No. 11, of June 28th, 2013;
Resolution CDFSB No. 10, of June 28th, 2013;
Resolution CDFSB No. 9, of December 28th, 2012;
Resolution CDFSB No. 8, of September 26th, 2012;
Resolution CDFSB No. 7, of March 28th , 2012;
Resolution CDFSB No. 6, of September 28th, 2011;
Resolution CDFSB No. 5, of March 31st , 2011;
Resolution CDFSB No. 4, of December 23rd, 2010;
Resolution CDFSB No. 3, of December 23rd 2010;
Resolution CDFSB No. 2, September 17th 2010;
Resolution CDFSB No. 1, September 17th 2010.