1. DYNAMO
DYNAMO ADMINISTRAÇÃO DE RECURSOS 1

2. DYNAMO – BRIEF HISTORY 3 Partnership established in September, 1993
Independent from any financial institution
Only activity is investment management in Brazil
Exclusive focus on Brazilian Equities
Currently manages about R$ 1 billion in equities – 9th largest equities manager in Latin America
Long term value-oriented investors
Strong focus on corporate governance 3

3. Overview of Fund Industry in Brazil8

4. Overview of Fund Industry in Brazil
Industry is focused on fixed Income products – high interest rates
Most of the resources comes from retail clients
High degree of concentration on few Fund Managers 8

5. Overview of Fund Industry in Brazil
Large commercial banks dominate the Industry
Independent Fund Managers are starting to emerge 8

6. Enforcement/Governance
Conflicts Of Interest
Regulatory Framework must address the conflicts inherent to
the industry given the massive presence of commercial banks
Disclosure
i) Parent’s direct ownership on invested securities
ii) Investment and commercial banking relationships with issuers
iii)Transactions among the Parent and the Funds
iv) Services rendered by parent to the Funds
Enforcement/Governance
i) Equip regulatory agencies
ii) Improve monitoring procedures
iii) Urge investors to be more proactive towards Funds 9