Banco do Brasil's employee pension fund, Previ, recorded an accumulated surplus of R$ 14.5 billion in 2023, the best result in the last 10 years. The performance was driven by investments in fixed income and variable, as well as a significant return on investments abroad.
Highlights
- Accumulated surplus of R$ 14.5 billion in Plan 1
- Profitability of 13.5% per year in Plan 1
- Investments abroad showed the highest return, 24.3%
- Previ Futuro reached R$ 32.8 billion in total assets
- R$ dividends totaling 5.7 billion were received from companies such as Petrobras, Vale, and Ambev
Performance of Plan 1
Previ's Plan 1, the entity's largest, achieved a return of 13.5% per year, exceeding the actuarial target of 8.6% (INPC + 4.75%). The main contributors to this performance were the fixed income and variable income. In total, Plan 1 has R$ 237.6 billion invested, with 58.3% in fixed income (R$ 138.5 billion) and 32.6% in variable income (R$ 77.4 billion).
The foreign investment segment, although it only represents 0.5% of the allocation (R$ 1.2 billion), showed the highest profitability, 24.3%. This is due to the year of recovery, even in an adverse scenario of rising interest rates abroad. The real estate segment, which represents 5.5% of the allocation (R$ 13 billion), also had a good return of 14.8%.
Accumulated Surplus
The accumulated surplus of R$ 14.5 billion takes into account the accumulated result for 2022 (R$ 4.7 billion), as well as R$ 28.09 billion from net investment returns and R$ 3.3 billion in contributions. Of this total, R$ 16.1 billion was deducted for the payment of benefits in 2023, R$ 2.3 billion for mathematical provisions and R$ 3.19 billion for other expenses, such as contingencies. The isolated result for 2023 was R$ 9.8 billion.
Performance of Previ Futuro
Previ Futuro, the fund's smallest plan, reached R$ 32.8 billion in total assets in 2023, with an accumulated return of 16.1%, almost double the actuarial target of 8.5% (INPC + 4.62%). The main contributions to this performance came from the fixed income and variable income segments. The variable income portfolio had the highest return, at 21.2%, while the foreign investment and real estate segments had returns of 20.5% and 20.2%, respectively.
Investment Strategy
The fund remains focused on companies that are good dividend payers. In 2023, the dividends obtained by Previ totaled R$ 5.7 billion, from companies such as Petrobras, Vale, Ambev and others. In Previ Futuro, there was more active management, applying variable income and multimarket strategies, unlike Plan 1, which made no advanced moves in 2023, except for participating in the follow-on of BRF (BRFS3).
Sources
- Banco do Brasil (BBAS3): fund has best result in 10 years, Suno - Intelligent Investments.
