Brazil’s Biggest Pension Fund Says Google a Possible Stock Pick

State-run Banco do Brasil SA’s pension fund, the nation’s largest, plans to invest in foreign stocks that have a low correlation to the benchmark Ibovespa.

Directors of the fund, known as Previ, have approved global investments of as much as 340 million reais ($149 million) this year in stocks that may include Google Inc., said Antonio Luiz Benevides, executive manager of the fund, handling 164 billion reais for Banco do Brasil employees.

Previ’s directors have yet to approve stock picks for the fund, which will use the MSCI World Index as a benchmark, Benevides said at an event in Florianopolis, Brazil. The fund was created by BB Dtvm, an asset manager based in Sao Paulo.

Previ may also invest in fixed-income and private equity abroad in coming years and plans to step up real-estate investments in Brazil this year, Benevides said.

“We’re going to start investing abroad, and we will start with equities,” Benevides said. “Brazil will still be our focus.”

Brazil’s pension funds reported an average loss of 0.7 percent in the first half, according to to the Brazilian pension fund association, known as Abrapp. The Ibovespa fell 22 percent during that period while Google, based in Mountain View, California, rallied 25 percent.

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