The Sovereign Fund of Brazil (in Portuguese ''Fundo Soberano do Brasil''; FSB) was the sovereign wealth fund of

Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...

, established on December 24, 2008 and extinct on September 20, 2019. The fund was a non-commodity institution which was required to support national companies in their

export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...

activities, and more broadly to act as a mechanism for anti-cyclical development, promoting

investment Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...

in projects of strategic interest to Brazil abroad and internally. On the day of its establishment, the fund was endowed with R$14.243 billion. Due to the national importance of the fund's activities, its

advisory board An advisory board is a body that provides non-binding strategic advice to the management of a corporation, organization, or foundation. The informal nature of an advisory board gives greater flexibility in structure and management compared to th ...

was composed of the governmental ministers of planning and finance, as well as the president of the

central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...

. This board was responsible for approving the general guidelines and goals of the FSB's investments. The Brazilian National

Treasury A treasury is either *A government department related to finance and taxation, a finance ministry. *A place or location where treasure, such as currency or precious items are kept. These can be state or royal property, church treasure or in p ...

was responsible for operating the fund. The Fund stored most of its revenue frozen in national treasury bonds, thwarting the trend among the sovereign funds around the world of investing in private equities, foreign real estate and other countries public papers. Furthermore, a reckless and massive investment in

Petrobras Petróleo Brasileiro S.A., better known by the portmanteau Petrobras (), is a state owned enterprise, state-owned Brazilian multinational corporation in the petroleum industry headquartered in Rio de Janeiro, Brazil. The company's name transla ...

stocks to fuel the pre-salt exploration in the Atlantic caused a R$ 4.4 billion loss due to the 40% fall in the company's market value. After such fiasco, the Fund was finally shutdown in September 2019, amidst the government's effort to open the economy.

References

External links

Fundo Soberano do Brasil
Finance in Brazil

Financial services companies established in 2008 {{Brazil-econ-stub