The Brazilian Pension Funds Authority (PREVIC) used its participation in APEP’s online seminar on “navigating volatility” to highlight concerns about pension funds’ high investment concentration and to point to its ongoing public consultation on updating Resolution PREVIC 23/2023, including strengthened expectations for participant communications. PREVIC’s superintendent director, Ricardo Pena, said concentration can be appropriate for some closed defined benefit plans with shorter duration and liquidity needs, while defined contribution and variable contribution plans with longer actuarial horizons should typically pursue diversification, even at modest levels, given reinvestment capacity. He also argued that “portfolio immunization” overstates what is achievable in practice, describing instead an optimisation aimed at minimising cash-flow risk and meeting payment needs. On communications, he criticised overly technical disclosures and noted the draft update recommends that closed supplementary pension entities (EFPCs) adopt a participant communication and service policy, use plain language, establish service channels and appoint a director responsible for communications and participant service, including investment-related messaging. The consultation on the update to Resolution PREVIC 23/2023 runs until 6 November, and APEP indicated it will submit contributions.

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