BRAZILIAN EQUITY OPPORTUNITIES<BR>
ISSUE II – OCTOBER 2016

This report examines the Brazilian equity markets, their structure, constituents and metrics over
time. In continuation to our earlier report on Brazilian Equity Opportunities (May 2015), we show
that the Brazilian equity markets now offer a compelling investment opportunity. There are 321
actively traded companies in Brazili, offering a sizeable group of businesses for superior stock
selection.

Brazil has a deeply rooted equity culture and BM&FBOVESPA S.A, founded in 1890, has had a
long history of services provided to the stock market and the Brazilian economy. In 2000,
BOVESPA led a program of integration with the eight other Brazilian exchanges to concentrate all
equity trading in a single environment. BM&FBOVESPA was founded in May 2008 with the
integration between BM&F, Brazil’s main derivatives exchange, and BOVESPA, the stock
exchange. BM&FBOVESPA is the sole exchange, despite the market being open for a competitor
since 2007. Stocks are exclusively traded through an exchange (Dark pools, MTFs and
internalization prohibited). It is also the provider of central counterparty and securities custody
services. In addition, BM&FBOVESPA ranks among the world’s leading exchanges by market
capitalization and the largest in the Americas (outside of the US).