Annual
Report 2013

Products

We were the first company in the industry to look at retirement plans as a way to enable different long-term life plans and not only something that is there to help you through retirement.

As a retirement-specific company in the Brazilian market, we offer our clients outstanding products and services that meet the needs of individuals with various profiles and businesses of all sizes. To this end, we are continuously breaking new ground in solutions that exceed the expectations of our clients from the moment they get a plan to the moment they start collecting benefits.

Currently, we provide our clients with two categories of retirement plans: the Plano Gerador de Benefício Livre (PGBL, acronyms in Portuguese) and the Vida Gerador de Benefício Livre (VGBL, acronyms in Portuguese), which are taxed differently (a progressive tax table that can be offset or a definitive regressive tax table, according to the Brazilian laws). Participant funds are invested in accounts with the option to allocate 100% to fixed-income funds or invest up to 49% in variable-income securities, for monthly contributions starting at BRL 25.00, the lowest amount for a retirement plan in the Brazilian market.

Brasilprev Júnior

In 1997, we broke new ground when we released Brasilprev Júnior. Intended for children and teenagers, this new product created a new segment in the retirement market. Designed for clients to use their funds while they are still young, this product became an effective tool to help families (parents or legal guardians) set aside a reserve to fund the projects of their children, nephews, and grandchildren, especially those pertaining to education.

Ever since the product was created, we are the leading company in reserves for this segment. We ended FY 2013 with BRL 6.3 million and 551,000 clients.

Ciclo de Vida

In 2007, we introduced the Ciclo de Vida funds in Brazil. This investment concept's main attribute is to make investments in fixed-income and variable-income funds, with a gradual risk adjustment over time, to improve the yield when the plan is originated and offer clients more security as the life plan fulfillment date becomes imminent.

With a baseline of BRL 60 for VGBL arrangements and BRL 25 for Brasilprev Júnior VGBL plans, Ciclo de Vida is available for three periods:

- Ciclo de Vida 2020: for those who wish to start their life plans between 2015 and 2025;

- Ciclo de Vida 2030: for those whose target date is between 2026 and 2035; and

- Ciclo de Vida 2040: for clients who want to achieve their goals after 2036.

We ended FY 2013 with a total of BRL 3.9 billion in assets in the Ciclo de Vida funds.

New Products

In 2013, in line with our innovative profile and looking to increase our competitiveness, we revamped our product portfolio for individuals and businesses. We intend to offer the market all new products that exceed the expectations of our clients.

- Individuals

In February, we started offering new products to individuals in line with the state of the economy. 

- Very Small and Small Business and Business Partners

With features that are similar to the new portfolio for individuals, we released the new products for very small and small businesses in October. Since they are nonmatching retirement plans (the company sets up the plan by entering into a collective agreement, but does not make contributions on behalf of employees), they do not need to be supported by a personnel management structure. Entrepreneur intervention is minimal as well and any employee can get a plan.

With this product, the progressive advantage is twofold: employees can get lower management fees on a case-by-case basis as their reserves increase and, collectively, when the entire group accumulates more funds.

Within this context, we released new products for our business partners, which include trade groups, associations, and government institutions. This product is similar to the one for small businesses. It also grants the same individual and collective progressive-advantage benefits.

Upscale

We also released fixed-income funds to meet the needs of Banco do Brasil's Estilo and Private segments based on an investment thesis that factors in client profile (conservative or moderate), age, and the outlook for project completion with two different focuses:

1) For people with very low risk tolerance or that are close to achieving their life plans and want to protect their investments (Brasilprev Estilo RF and Brasilprev Private RF – Fundo Clássico);

2) For clients whose investment profile has a medium risk tolerance that seek enhanced returns in the long run (Brasilprev Private RF – Fundo Premium).

Services

We offer our clients a wide array of services by using multiple outreach channels as a way to make it easier to check up on plans and increase client satisfaction and loyalty. To this end, we have the Brasilprev Portal, our call center, self-service channels in the Banco do Brasil network, among others (please refer to Clients).

To raise awareness of the importance of long-term savings and financial literacy as a whole, we also provide our clients and the public with clear and succinct information on this type of investments (please refer to Clients and Community).