OREANDA-NEWS. May 10, 2011. BM&FBOVESPA hereby announces the opening of the bidding process to select a securities portfolio manager entitled to an exclusive one-year license for the use of the Dividend Index (IDIV), Basic Materials Index (IMAT) and Public Utilities Index (UTIL). This is for the creation, respectively, of the Dividend Index Exchange-Traded Fund (IDIV ETF), the Basic Materials Index Exchange-Traded Fund (IMAT ETF), and the Public Utilities Index Exchange Traded Fund (UTIL ETF). The new products will have their units traded on the BOVESPA segment exchange market.

BM&FBOVESPA will receive documentation from the interested institutions up to June 13, 2011. The winning institution for each of the ETFs will be that which presents the greatest commitment of volume for the 12 months as of the date on which the units are admitted for trading, in the form of a proposal of minimum guaranteed Exchange fees. This is defined as the sum total of trading, settlement and registration fees for cash, options and forward transactions involving IDIV ETF, IMAT ETF and UTIL ETF units carried out in the BOVESPA market segment. The announcement of the result of the bidding process shall be held in a session restricted to those participants that send proposals on June 28, 2011, as of 10.00 am at BM&FBOVESPA headquarters.

With the opening of the bidding process for the selection of a securities portfolio manager for the three new ETFS (IDIV ETF, IMAT ETF and UTIL ETF), BM&FBOVESPA seeks to offer the market new investment alternatives. To this end it has chosen the following as references for the new ETFs: (i) the Dividend Index, which measures the performance of shares in companies that are outstanding in terms of remuneration to investors, in dividends and interest on own capital; (ii) the Basic Materials Index, which measures the performance of shares that most represent the packaging, wood and paper, miscellaneous materials, mining, chemicals, steel and metallurgy sectors; and (iii) the Public Utilities Index, which measures the performance of shares in companies that represent the public utilities sector (electricity, water and sanitation, and gas).

The winning financial institution shall obtain the exclusive license for the use of the Dividend Index (IDIV), Basic Materials Index (IMAT) and Public Utilities Index (UTIL) to manage their respective ETFs for a period of 1 (one) year. The only legal entities eligible to participate in the bidding process are those that have been authorized by CVM to perform professional securities portfolio management activities, pursuant to CVM Instruction n? 306/99, and have or belong to an economic group that has, in Brazil and/or abroad, assets under management (AUM) amounting to at least BRL 2 billion. The portfolio manager must also appoint the entity that will act as the investment fund manager, which will need to have assets under management (AUM) amounting to at least BRL 10 billion. The rules for this process are laid out in the Bid Notice.