The principle objective of the Total Return Equities Portfolio is to seek capital appreciation by investing primarily in Brazilian equities using the available instruments in spot and derivatives markets traded locally and in the internatiojnal markets. The Company will, on behalf of the Total Return Equities Portfolio, seek investment opportunities in equities that, based on a solid fundamental analysis, are trading above or below their intrinsic value. To reach its objectives, the Company will use the most suitable instruments in spot and derivatives markets such as options, swaps and future contracts, among others (as described further) and will be completely free to vary its market directional exposure. The Company's investments in stocks will primarily be concentrated between 5 to 10 holdings. This equity portfolio will not necessarily be correlated to any stock index. On behalf of the Total Return Equities Portfolio, the Company may invest in customized over-the-counter derivative instruments sold by brokers and other financial institutions as an integral part of the investment strategy of the Total Return Equities Portfolio. Such "structured" or "engineered" products may assist the Advisor in achieving a more precise investment exposure for the Total Return Equities Portfolio than more generally traded instruments, such as indices and other instruments, may provide. The actual inception date of the fund is September 17, 2002.