Quarterly Management Discussion & Analysis (MDA300905.pdf)

Investment Funds and Managed PortfolioThe pro forma financial statements below were prepared based on internal management information and areintended to show the performance of the Investment Fund-related business.R$ MillionMutual Fund Management Fees (*) 394 366 28Brokerage Services 26 28 (2)Custody Services and Managed Portfolios 17 11 6Income Tax and Social Contribution (48) (35) (14)Profit Sharing (20) (13) (7)(*) Not including income from Pension Plans Funds Management.Obs:The Non-Interest Expenses are made up of personnel expenses, other administrative expenses, other operating expenses and tax expenses with CPMF and others.In the third quarter of 2005, Net Income fromInvestment Fund and Managed Portfolio segmenttotaled R$ 40 million, compared to R$ 37 million in theprior quarter.Mutual Fund Management Fees totaled R$ 394 millionin the period, compared to R$ 366 million in the secondquarter of 2005. This increase is mainly due to the higherrevenues from management fees driven by the largervolume of funds under management.Banco Itaú Holding stood out on the annual awardsgranted by Exame magazine, receiving the awards ofFund Manager of the Year and Equity Fund Manager ofthe Year.Assets Under Management72,85,966,981,16,974,287,16,989,67,293,87,399,88,380,1 82,3 86,4 91,4105,2 105,88,6 8,196,6 97,7R$ Billion112,38,3104,0Sep.03 Dec.03 Mar.04 Jun.04 Sep.04 Dec.04 Mar.05 Jun.05 Sep.05Investment FundsManaged PortfolioItaú CorretoraIn the third quarter of 2005, Itaú Corretora, which ismanaged independently from the investment fundsactivities, traded a volume of R$ 11.2 billion on Bovespa,a 43% increase compared to the same period of theprevious year. In September 2005, Itaú Corretora rankedfourth among all brokers, with a 6.0% market share.On the BM&F, Itaú Corretora traded 8.6 million contractsin the quarter, taking up from the sixth position in thethird quarter of 2004 to the second position in the thirdquarter of 2005.In the third quarter of 2005, Itaú Corretora, through itsHome Broker- www.itautrade.com.br – traded a volumeof R$ 905 million, with an 8.1% market share, reflecting25% growth compared to the third quarter of 2004.34 Management Discussion and AnalysisBanco Itaú Holding Financeira S.A.