By Rogerio Jelmayer
SAO PAULO--Brazil's biggest pension fund is considering
investing 300 million Brazilian reais ($150.7 million) in shares of
foreign companies this year, and could see other major pension
funds in the country make similar purchases, Chief Investment
Officer Rene Sanda said Tuesday.
Previ, as the pension fund of workers of state-controlled bank
Banco do Brasil SA (BBAS3.BR, BDORY) is known, is Brazil's biggest,
with a total of BRL160 billion invested in equity and fixed-income
investments. Most of that, 60%, is in equity, according to the
fund.
The decision to buy international equity followed conversations
with fellow pension funds Petros, the pension fund for workers of
state-controlled oil company Petroleo Brasileiro (PETR4.BR),
Funcef, the fund for workers of state-run bank Caixa Economica
Federal, and Valia, for workers of mining giant Vale (VALE). All of
them agreed on the need to invest abroad, Mr. Sanda said.
Economists expect Brazil to raise its benchmark Selic interest
rate from a record low of 7.25%, possibly increasing it as soon as
this week. Still, investors say Brazil's high interest rates, which
helped lift pension-fund profitability in the past, are unlikely to
return, forcing funds to seek other forms of investments with
higher yields.
Previ is looking to invest in companies with a high market
value, good dividend payouts and which operate in one of the 10
biggest economies in the world, Mr. Sanda said.
--Paulo Winterstein contributed to this article.
Write to Rogerio Jelmayer at rogerio.jelmayer@dowjones.com