PRESS NOTICE
Bogotá, May 29th, 2007
PERFORMANCE OF MANDATORY PENSION FUNDS, VOLUNTARY PENSION FUNDS,
UNEMPLOYMENT FUNDS, PAY AS YOU GO REGIME AND ADMINISTRATOR OF PROFESSIONAL
RISKS OF THE ISS, FEBRUARY 2008
1. MANDATORY PENSION FUNDS
1.1 RETURN
The accumulated return of mandatory pension funds during the last three years, period that is considered
for the calculation of the minimum return, was in average 9.32% annual effective, which equals to a real
return of 3.86% and is higher than the demanded minimum return in 2.73 percent. Individually, the funds
reached returns that go from 8.46% to 10.53% (graphics 1 and 2).
G R A P H 1.
M A N D A T O R Y P E N S IO N F UN D S ' R E T UR N
F E B .2 8 t h/ 0 5 T O F E B .2 9 t h/ 0 8
12.00%
10.53%
9.32%
8.68%
8.46%
NOM INA L RETURN
AVERAGE
(*)
HORIZONTE
COLFONDOS
SANTANDER
PORVENIR
SKANDIA
0.00%
PROTECCION
2.00%
6.59%
MINIMUN
1.26%
RETURN
3.04%
4.00%
3.86%
3.45%
6.00%
8.89%
3.83%
4.04%
5.01%
8.00%
9.29%
3.25%
9.51%
10.00%
REA L RETURN
(*) Weighed by the equity’s daily average balance
GRAPH 2
EVOLUTION OF THE MANADATORY PENSIONS FUNDS´ ACCUMULATED RETURNS
16.0%
15.5%
15.0%
14.5%
14.0%
13.5%
13.0%
12.5%
12.0%
11.5%
11.0%
10.5%
10.0%
9.5%
9.0%
8.5%
8.0%
Feb-07
Mar-07
Abr-07
PROTECCION
May-07
Jun-07
PORVENIR
Jul-07
Ago-07
HORIZONTE
Sep-07
Oct-07
SANTANDER
Nov-07
Dic-07
COLFONDOS
Ene-08
Feb-08
SKANDIA
2
During the last five years, mandatory pension funds obtained an average return of 11.94%, which equals
to a real return of 6.14%, whereas the average return from the beginning of operations on February the
29st, 2008 was 15.11% annual effective, which is equal, in real terms, to 4.15% (graph 3).
GRAPH 3. R E T UR N F R O M T H E B E G IN N IN G
14.65%
14.61%
14.55%
14.32%
3.73%
3.70%
3.64%
3.43%
SANTANDER
PORVENIR
HORIZONTE
SKANDIA
15.11%
14.86%
3.92%
COLFONDOS
11.94%
16.60%
O F O P E R A T IO N S ( 1) F E B .2 9 t h/ 0 8
10.71%
11.06%
12.00%
11.57%
14.00%
11.59%
16.00%
12.15%
18.00%
13.79%
LA S T F IV E Y E A R S R E T UR N
F E B .2 8 t h/ 0 3 T O F E B .2 9 t h/ 0 8
5.31%
4.98%
HORIZONTE
SANTANDER
2.00%
4.15%
5.79%
PORVENIR
5.50%
5.81%
COLFONDOS
4.00%
6.14%
6.34%
6.00%
SKANDIA
8.00%
7.90%
10.00%
NOM INA L RETURN
AVERAGE (*)
PROTECCION
AVERAGE (*)
PROTECCION
0.00%
REA L RETURN
(*) Weighed by the equity’s daily average balance
(1) May 1994, excepting Skandia that began in March 1995
1.2 RETURN AND VOLATILITY
1.2.1 MONTHLY RETURN AND VOLATILITY
The monthly average return of Mandatory Pension Funds during the last thirty-six months was between
9.16% and 11.47% (annual effective rate), with an annualized volatility of 6.56% and 7.52%, respectively.
The return and volatility of each one of those funds are shown in graph 4.
Monthly average return (annual
ffective)
GRAPH 4
MANDATORY PENSION FUNDS MONTHLY AVERAGE RETURN AND VOLATILITY FEBRUARY 28th 2005 - FEBRUARY 29th 2008
11.35%
Protección
Skandia
11.05%
10.75%
10.45%
10.15%
Porvenir
Santander
9.85%
Colfondos
9.55%
9.25%
8.95%
8.65%
PORTFOLIO
OF REFERENCE
Horizonte
8.35%
4.50%
4.80%
5.10%
5.40%
5.70%
6.00%
6.30%
VOLATILITY
6.60%
6.90%
7.20%
7.50%
7.80%
3
1.2.2 VOLATILITY AND ACCUMULATED RETURN
The accumulated average return of Mandatory Pension Funds during the last thirty-six months, was
between 14.64% and 18% (annual effective rate), with annualized volatilities of 2,92% and 3,50%,
respectively. The return and volatility of each one of those funds are shown in graph 5.
(*) It belongs to the accumulated return of the last 36 months
1.3 VALUE OF THE FUNDS
The value of mandatory pension funds reached as of February 29th, 2008 the amount of USD 27.254
millions, USD 1.706 millions more than the value registered as of January 31st, in other words, 6.7%.
Regarding the same month in 2007, the funds have had an increase of 40.6%, which is equal to 7,876
US million dollars (graph 6 and 7, Chart 1.1).
GR A P H 6.
VA LUE OF EA C H F UN D A N D IT S P A R T IC IP A T ION WIT H IN T H E SYST EM
A S OF F EB .29T H 2008 - US M ILLION D OLLA R S
8,000
27.0%
24.8%
7,000
6,000
17.1%
5,000
FUND VALUE
40
0.1%
SKANDIA
PLAN
ALTERNATIVO
1,214
4.5%
3,261
SANTANDER
PERCENTAGE OF PARTICIPATION
SKANDIA
3,946
HORIZONTE
PROTECCION
0
PORVENIR
1,000
COLFONDOS
2,000
12.0%
4,657
6,766
3,000
7,370
4,000
14.5%
25,548
6.7%
0.7%
3.5%
8.5%-
5,000
2.2%
3.4%
10,000
25,372
24,507
0.1%-
3.9%
1.2%-
15,000
24,536
8.4%
5.2%
20,000
23,610
21,775
11.9%
23,287
23,572
21,070
20,029
19,378
25,000
0.9%
US MILLION DOLLARS
30,000
23,790
GR A P H 7.
V A LUE O F T H E F UN D S
LA S T Y E A R E V O LUT IO N
27,254
4
FUNDS VALUE
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Jul-07
Jul-07
Jun-07
May-07
Apr-07
Feb-07
Mar-07
-
MONTHLY VARIATION
1.4 AFFILIATES
The number of affiliates with the individual savings with solidarity regime as of the 29th day of February
2008 was 7.984.503, with an increase of 1%, that is, 77.673 more individuals affiliated than the ones
reported as of January 31st . Regarding the same month in 2007, the funds have had an increase of
11.6%, which is equal to 827.178 affiliates (Graph 8).
GR A P H 8.
A F F ILIA T E S A N D P A R T IC IP A T IO N O F E A C H F UN D WIT H IN T H E S Y S T E M
A S O F F E B .2 9 T H 2 0 0 8
2,700,000
29.1%
2,400,000
21.7%
2,100,000
19.0%
7,948,503
7,870,830
7,784,275
7,714,428
7,582,676
7,487,857
7,406,882
7,258,846
7,197,578
7,121,325
7,800,000
7,344,705
8,100,000
7,653,566
N UM B E R O F A F F ILIA T E S
LA S T Y E A R E V O LUT IO N
7,500,000
400
0.0%
SKANDIA PLAN
ALTERNATIVO
67,787
0.9%
SKANDIA
COLFONDOS
P ERCENTA GE OF P A RTICIP A TION
7,814,535
A FFILIA TES
HORIZONTE
PORVENIR
0
PROTECCION
300,000
13.7%
1,091,510
600,000
1,248,099
900,000
1,721,102
1,200,000
1,506,503
15.7%
2,313,102
1,500,000
SANTANDER
1,800,000
0.9%
0.4%
0.7%
Nov-07
Dec-07
Jan-08
1.0%
0.8%
Oct-07
1.3%
Aug-07
0.9%
1.1%
Jul-07
Sep-07
0.8%
Jun-07
0.9%
Apr-07
1.2%
1.1%
Mar-07
6,900,000
0.7%
7,200,000
AFFILIATES
MONTHLY VARIATION
Feb-08
May-07
Feb-07
6,600,000
5
11.60%
AFFILIATES' EVOLUTION IN THE LAST FIVE YEARS
8,000,000
10.00%
7,000,000
10.70%
10.40%
6,000,000
10.50%
5,000,000
4,000,000
3,000,000
7,948,503
3,303,496
4,645,007
7,121,325
2,945,428
4,175,897
6,473,215
% VARATION
TOTAL
MEN
WOMEN
Feb-08
Feb-07
Feb-06
Feb-05
Feb-04
2,643,707
3,829,508
5,847,205
2,398,793
5,296,627
2,174,715
0
3,121,912
1,000,000
3,448,412
2,000,000
55.2% of the mandatory pension funds’ total members are active, in other words, 4.389.348; and 44.8%,
which equals to 3.559.155 are inactive. Those inactive members are those who have not made any
quotations in at least the last six months (graph 9).
GR A P H 9
A C T IV E A N D IN A C T IV E A F F ILIA T E S B Y E A C H F UN D
A S O F F E B .2 9 T H 2 0 0 8
1,600,000
1,400,000
1,200,000
1,000,000
800,000
A CTIVE
63
SKANDIA PLAN
ALTERNATIVO
337
21,762
46,025
SKANDIA
SANTANDER
550,090
541,420
634,936
613,163
COLFONDOS
HORIZONTE
728,350
778,153
657,100
1,064,002
PORVENIR
-
PROTECCION
200,000
966,854
400,000
1,346,248
600,000
INA CTIVE
55.2%
55.2%
44.8%
44.8%
Jan-08
Feb-08
Oct-07
55.1%
54.8%
45.2%
44.9%
54.2%
45.8%
Sep-07
Dec-07
53.9%
46.1%
Aug-07
54.9%
53.6%
46.4%
Jul-07
45.1%
53.6%
46.4%
Jun-07
Nov-07
53.3%
46.7%
May-07
52.7%
54.0%
52.1%
56.0%
52.3%
A C T IV E A N D IN A C T IV E A F F ILIA T E S
LA S T Y E A R E V O LUT IO N
52.0%
47.7%
47.3%
Mar-07
Apr-07
46.0%
47.9%
48.0%
Feb-07
50.0%
44.0%
42.0%
40.0%
ACTIVE
INACTIVE
57.6% of the Individual Savings Regime’s total members belongs to non-quoting members, which is
6
equal to 4.576.552 people; and 42.4%, that is 3.371.951 people, are quoting members (graph 10). The
non-quoting members are those who are affiliated but are not pensioned yet and that, for some reason,
did not make the mandatory payment for the reported moth.
G R A P H 10
Q UO T IN G A N D N O N - Q UO T IN G A F F ILIA T E S B Y F UN D A S O F
F E B .2 9 T H 2 0 0 8
1,400,000
1,200,000
1,000,000
800,000
QUOTING
159
241
SKANDIA PLAN
ALTERNATIVO
28,568
39,219
SKANDIA
SANTANDER
COLFONDOS
770,611
320,899
723,803
524,296
961,725
544,778
HORIZONTE
905,691
815,411
-
PROTECCION
200,000
1,185,995
1,127,107
400,000
PORVENIR
600,000
NON-QUOTING
57.6%
54.9%
45.1%
Dec-07
42.4%
54.6%
45.4%
Nov-07
Feb-08
55.1%
44.9%
Oct-07
56.9%
56.0%
44.0%
Sep-07
43.1%
56.2%
43.8%
Aug-07
Jan-08
56.5%
43.5%
Jul-07
56.3%
43.7%
May-07
56.7%
56.8%
43.2%
Apr-07
43.3%
57.7%
42.3%
Mar-07
Jun-07
57.5%
60.0%
42.5%
65.0%
Feb-07
Q UO T IN G A N D N O N - Q UO T IN G A F F ILIA T E S
LA S T Y E A R E V O LUT IO N
55.0%
50.0%
45.0%
40.0%
35.0%
30.0%
NON-QUOTING
QUOTING
83.9% of the total number of the people affiliated with the mandatory pension funds, earn an income of
less than two minimum wages, 10.3% earn an income between two and four minimum wages and 5.8%
earn more than four minimum wages.
56% of the affiliates are between 15 and 34 years old, where 55.5% of them are men and 44.5% women.
95.3% of the affiliated people with the system correspond to workers under contract and 4.7% to
independent workers.
When talking about the origin of the affiliates, it is important to say that 60.1% belongs to the people who
are affiliated to the system, 27.8% come from the Instituto de Seguros Sociales” (“ISS”), 11.6% from
transfers between AFPs and 0.5% come from the Government social security funds (Chart 1.2).
1.5 PENSIONERS
As of February 29th 2008, the Individual Savings with Solidarity Regime has 26.550 pensioners, 15.518
for survival, 6.029 for invalidity and 5.003 for old age retirement (graph 11).
52.6% of the pensioners, that is 13.954, have chosen the modality of programmed retirement pension;
47.4%, 12.595 pensioners, the immediate life rent and 1 pensioner elected the programmed retirement
with deferred life rent (Chart 1.3).
7
INVALIDITY
SKANDIA P.A
SKANDIA
18
309
220
SANTANDER
RETIREMENT AGE
26,326
26,032
25,712
25,403
25,057
24,738
24,373
23,970
23,592
25,000
22,915
22,531
30,000
23,181
N UM B E R O F P E N S IO N E R S
LA S T Y E A R E V O LUT IO N
26,550
SURVIVAL
HORIZONTE
PORVENIR
PROTECCION
0
COLFONDOS
500
125
48
980
582
1,000
614
519
1,500
1,174
1,425
2,500
2,000
2,443
1,788
3,000
716
3,500
2,639
3,175
4,000
2,371
4,500
3,561
3,842
G R A P H 11
P E N S IO N E R S B Y F UN D - A S O F F E B .2 9 T H 2 0 0 8
1.2%
1.2%
Nov-07
Dec-07
0.9%
1.4%
Oct-07
1.1%
1.3%
Sep-07
1.7%
Jul-07
1.5%
1.6%
1.8%
Jun-07
10,000
1.2%
1.0%
15,000
1.7%
20,000
5,000
PENSIONERS
MONTHLY VARIATION
P E N S IO N E R S ' E V O LUT IO N IN T H E LA S T F IV E Y E A R S
30,000
26,550
25,000
22,531
19,190
20,000
PENSIONERS
Feb-05
Feb-06
VARIATION
17.8%
Feb-04
17.4%
-
15.4%
5,000
16.4%
10,000
14,283
19.8%
15,000
16,627
Feb-07
Feb-08
Feb-08
Jan-08
Aug-07
May-07
Apr-07
Mar-07
Feb-07
-
8
1.6 INVESTMENT PORTFOLIO
As of February 29th 2008, the Mandatory Pension Funds portfolio’s value reached USD$27,275 thousand
millions, showing an increase of 6.7% in comparison to the end of the previous month, when it was
USD$25,557 thousand millions.
At the end as of February 2008, 69.3% of the above mentioned funds’ portfolio, that is USD$18,913
million belongs to fixed income investments; 27.9%, USD$ 7,603 million, to investments in equity; 2.1%,
USD$ 568 million, to overnight deposits and 0.7%, USD$ 190 million, to net position in derivatives (rights
minus obligations) (Graph 12 and Chart 1.4).
GRAPH 12
PORTFOLIO DIVERSIFICATION: FIXED INCOME, CHANGEABLE INCOME, OVERNIGHT DEPOSITS AND DERIVATIVES - AS OF FEB 29th 2008
US THOUSAND DOLLARS
100%
Fixed income
69.1%
Changeable
Income
70.9%
67.5%
70.1%
71.5%
65.1%
61.8%
69.3%
Overnight
Deposits
26.1%
Derivatives
27.2%
27.8%
28.6%
27.4%
30.1%
25.8%
27.9%
4.5%
0%
0.5%
2.7%
BBVA
HORIZONTE
$4,657,512
0.2%
0.3% 1.0%
COLFONDOS
$3,956,781
0.1%
2.1%
0.3%
3.1%
0.9%
SANTANDER
$3,259,600
PORVENIR
$7,377,869
PROTECCION
$6,767,207
11.8%
3.3%
SKANDIA PENSIONAR
$1,215,430
2.1%
0.3% 0.7%
SKANDIA - PLAN
ALTERNATIVO
$40,401
SISTEM A
$27,274,800
FIXED INCOME, EQUITY, OVERNIGHT DEPOSITS AND DERIVATIVES NET
POSITION TOTAL PORTFOLIO'S LAST YEAR EVOLUTION - US MILLION
DOLLARS
100%
80%
60%
40%
20%
0%
FEB -07
19,346
M A R-07 A P R-07
19,975
21,032
Derivatives
M ay-07
23,551
Jun-07
23,259
Jul-07
23,790
Overnight Deposits
A UG-07
21,768
Sep-07
23,423
Oct-07
24,352
No v-07
24,459
Changeable Income
dec-07
25,370
Jan-08
25,557
Feb-08
27,275
Fixed income
9
Investment in public debt continues being the most significant one of these funds. As of February 29th
2008, these investments represented 44.7% of the portfolio’s total value (national debt represents the
40.4%, external national debt 2.1% and territorial organizations and decentralized entities 2.2%),
followed by the securities issued by institutions supervised by other regulatory authorities with 23.2%,
securities issued by the Institutions supervised by the Financial Superintendency which had a
participation of 16.5% and the external investments with a participation a 11.5% (Graph 13).
GRAPH 13
PORTFOLIO'S CLASIFICATION : BY ISSUER - AS OF FEB 29th 2008 - US THOUSAND DOLLARS
100%
15.8%
Internal P ublic Debt
25.7%
Institutio ns watched by o ther
regulato ry authority
41.2%
39.3%
40.2%
42.4%
40.4%
42.5%
15.7%
Institutio ns supervised by the
Financial Superintendency
20.1%
13.2%
External Investment
Do mestic debt securities
issued under Law 80/93 and
Decree 2681/93
18.7%
24.8%
24.5%
24.3%
23.2%
24.0%
22.2%
Overnight Depo sits
18.5%
External P ublic Debt
14.2%
14.4%
16.2%
16.5%
11.3%
17.8%
11.8%
Securities issued, guaranteed by
Fo gafin (Financial Insitutio n
Guarantee Fund)
4.5%
13.2%
Others (1)
2.7%
3.9%
2.3%
0.5%
0%
28.3%
1.6% 0.7%
1.4%
BBVA
HORIZONTE
$4,657,512
14.8%
0.1%
0.3%
1.7%
1.8%
0.2%
COLFONDOS
$3,956,781
13.2%
8.4%
3.2%
7.9%
3.1%
1.0%
2.7% 0.4%
SANTANDER
$3,259,600
1.5%
1.3%
1.7%
0.9% 2.3%
PORVENIR
$7,377,869
1.9%
9.5%
12.8% 2.1%
2.1%
1.8%
0.3% 3.3%
PROTECCION
$6,767,207
11.5%
3.4%
0.2%
SKANDIA PENSIONAR
$1,215,430
0.3%
SKANDIA PLAN
ALTERNATIVO
$40,401
2.2%
2.1%
0.7%
1.4%
SISTEMA
$27,274,800
(1) Others: Derivatives net position
TOTAL PORTFOLIO'S LAST YEAR EVOLUTION BY ISUUER
US MILLION DOLLARS
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
FEB -07
19,346
M A R-07
19,975
A P R-07
21,032
M ay-07
23,551
Jun-07
23,259
Jul-07
23,790
A UG-07
21,768
Sep-07
23,423
Oct-07
24,352
No v-07
24,459
dec-07
25,370
Jan-08
25,557
Feb-08
27,275
Internal Public Debt
Domestic debt securities issued under Law 80/93 and Decree 2681/93
Institutions supervised by the Financial Superintendency
External Public Debt
Institutions w atched by other regulatory authority
Securities issued, guaranteed by Fogafin (Financial Insitution Guarantee Fund)
External Investment
Others
The 75.1% of the portfolio mentioned before is denominated in Colombian pesos, 13.6% in UVR, 10.5%
in US Dollar, 0.8% in Euros and the remaining 0.1% in British Pound and Yen. (Graph 14).
10
GR A P H 14
P OR T F OLIO'S C LA SIF IC A T ION : B Y C UR R ER N C Y
A S OF F EB 29th 2008 - US T H OUSA N D D OLLA R S
100%
Col Peso
(Includes
derivatives net
position)
56.6%
UVR
67.3%
73.4%
72.0%
74.8%
75.1%
76.7%
84.5%
US Dollar
9.4%
Euro
14.8%
14.6%
Others (1)
14.5%
14.3%
7.3%
11.1%
8.9%
0.9% 0.3%
1.7%
17.1%
13.5%
0.1%
BBVA
HORIZONTE
$4,657,512
COLFONDOS
$3,956,781
0.1%
0.9%
SANTANDER
$3,259,600
PORVENIR
$7,377,869
10.5%
8.0%
7.3%
0%
13.6%
32.1%
14.2%
1.9% 0.1%
0.8%
1.0%
PROTECCION
$6,767,207
SKANDIA PENSIONAR
$1,215,430
SKANDIA - PLAN
ALTERNATIVO
$40,401
0.8%
SISTEMA
$27,274,800
(1) Others: British Pound and Yen
TOTAL PORTFOLIO'S LAST YEAR EVOLUTION BY CURRENCY
US MILLION DOLLARS
78%
68%
58%
48%
38%
28%
18%
8%
-2%
FEB-07
19,346
MAR-07
19,975
Others
APR-07
21,032
May-07
23,551
Euro
Jun-07
23,259
Jul-07
23,790
AUG-07
21,768
UVR
Sep-07
23,423
Oct-07
24,352
US Dollar
Nov-07
24,459
dec-07
25,370
Jan-08
25,557
Feb-08
27,275
Col Peso
Regarding the foreign currency position, it is observed that 53.2% is covered from the exchange rate
11
fluctuation risk. The uncovered part represents the 5.3% of the funds’ total value (Graph 15 and Chart 4).
GRAPH 15
MANDATORY PENSION FUNDS
PERCENTAGE´S LAST YEAR EVOLUTION WITHOUT COVERAGE (MAXIMUM LIMIT 30%)
12.0%
11.0%
10.0%
9.0%
8.0%
8.0%
7.0%
6.4%
6.0%
6.0%
5.0%
5.1%
4.5%
4.0%
3.0%
2.2%
2.0%
1.0%
0.0%
Feb-07
Mar-07
Abr-07
May-07
Jun-07
Jul-07
Ago-07
Sep-07
Oct-07
Nov-07
Dic-07
Ene-08
Feb-08
PROTECCION
PORVENIR
HORIZONTE
SANTANDER
SKANDIA
COLFONDOS
On the other hand, 27.8% of the portfolio is invested in fixed income securities issued in Colombian
pesos, 21.2% of the portfolio is invested in stocks, 15.6% is linked to CPI issues, 13.6% is invested in
fixed income linked to UVR, 6.6% in Shares (Derived from securitization processes, Mutual Funds, Unit
trust funds and Index Fund), 6.7% is linked to the DTF, 4.5% is invested in fixed income denominated in
US Dollar, 2.1% in Overnight Deposits and the rest (2%) are securities linked to, Libor, British Pound,
fixed income in Euro, floating UVR and net position in derivatives. (Graph 16 and Chart 1.5).
GR A P H 16
P OR T F OLIO'S C LA SIF IC A T ION : F LA T R A T E B Y C UR R EN C Y, C H A N GEA B LE IN C OM E, OVER N IGH T D EP OSIT S - A S OF
F EB 29th 2008 - US T H OUSA N D D OLLA R S
100%
11.4%
Flat Rate - Col Peso
28.0%
25.9%
28.4%
27.8%
28.5%
35.8%
STOCKS
12.7%
20.3%
15.9%
IPC, IPM
19.0%
Flat Rate - UVR
18.5%
20.9%
12.5%
25.1%
21.2%
20.0%
9.4%
23.3%
Shares
15.5%
15.2%
10.2%
16.7%
13.3%
DTF
Flat Rate - US Dollar
14.5%
18.0%
14.6%
14.3%
7.7%
Overnight Deposits
2.9%
Others (1)
0%
1.4%
2.7% 2.5%
BBVA
HORIZONTE
$4,657,512
2.5%
0.3% 0.1%
COLFONDOS
$3,956,781
14.1%
13.6%
4.4%
6.1%
6.6%
11.8%
4.0%
7.0%
5.5%
6.8%
3.9%
3.1%
5.0%
4.5%
6.7%
6.8%
2.0% 1.4%
SANTANDER
$3,259,600
15.6%
1.9%
7.4%
7.4%
6.7%
6.9%
14.2%
7.3%
8.7%
14.8%
PORVENIR
$7,377,869
4.0%
2.1%
11.7%
2.0%
0.9%
PROTECCION
$6,767,207
1) Libor, British Pound, fixed income in Euro, floating UVR and net position in derivatives
4.5%
11.5%
SKANDIA PENSIONAR
$1,215,430
SKANDIA PLAN
ALTERNATIVO
$40,401
SISTEM A
$27,274,800
2.1%
12
FIXED INCOME BY INTEREST RATE TYPE , EQUITY, OVERNIGHT DEPOSITS AND DERIVATIVES NET
POSITION TOTAL PORTFOLIO'S LAST YEAR EVOLUTION
US MILLION DOLLARS
35%
30%
25%
20%
15%
10%
5%
0%
FEB-07
19,346
MAR-07
19,975
APR-07
21,032
May-07
23,551
Jun-07
23,259
OTHERS
FIXED INCOME UVR
DTF
Jul-07
23,790
AUG-07
21,768
Sep-07
23,423
Oct-07
24,352
FIXED INCOME COL PESO
IPC
SHARES
Nov-07
24,459
dec-07
25,370
Jan-08
25,557
Feb-08
27,275
FIXED INCOME EURO
FIXED INCOME US DOLLAR
STOCKS
Regarding the classification of the portfolio by credit risk, it is remarkable that 61.4% are securities
issued by the Nation, 25.6% are investments with AAA qualification, 4.2% with AA+, 3.7% are
investments that do not require qualification, and the rest (5.1%) belongs to securities with AA, AA-, A+,
A, A-, A1, BBB+, BBB, BBB- y C, retired qualification and securities issued by Fogafin (Graph17)
GRAPH 17
PORTFOLIO'S CLASIFICATION: BY CREDIT RISK - AS OF FEB 29th 2008
100%
NATION
46.3%
59.8%
AAA
61.6%
65.7%
54.3%
58.9%
61.5%
61.4%
AA+
13.5%
DO NOT
REQUIRED
26.4%
23.8%
20.1%
18.7%
24.8%
36.4%
22.4%
OTHERS (1)
3.3%
4.6%
1.6%
5.6%
4.5%
4.0%
5.2%
3.4%
5.2%
6.0%
0%
PROTECCION
PORVENIR
HORIZONTE
10.1%
12.5%
11.3%
0.3%
8.1%
9.8%
5.3%
SANTANDER
4.2%
3.7%
1.8%
SKANDIA - P.A
SKANDIA
25.6%
2.2%
0.7%
COLFONDOS
5.1%
SYSTEM
(1) AA, AA-, A+, A, A-, 1+, 2, BBB+, BBB, BBB- y C, retired qualification and securities issued by Fogafin
Note: Not including the derivatives net position and Overnight Deposits.
Finally, it is worth to point out that 2% of the fixed income portfolio has a remaining maturity of 180 days,
1.9% between 181 and 360 days, 10.1% between 361 and 720 days, 14.6% between 721 and 1080
days, 8.4% between 1081 and 1440 days, 9.2% between 1441 and 1800 days, 2.9% between 1801 and
2160 days, 29.5% between 2161 and 2880 days, 5.1% between 2881 and 3600 days and 16.3% has a
maturity superior to 10 years (Graph 18 and Chart 1.6).
13
GRAPH 18
FIXED RATE PORTFOLIO BY REMAINING MATURITY DAYS - AS OF FEB 29th 2008
100%
8.6%
12.7%
13.4%
15.0%
9.1 > 3600
15.0%
16.3%
6.5%
5.1%
27.5%
29.5%
21.1%
7.6%
1.7%
3.0%
9. 2881 - 3600
16.4%
42.5%
7.7%
26.8%
8. 2161 - 2880
33.4%
33.5%
7. 1801 - 2160
5. 1081 - 1440
6.1%
1.2%
1.7%
3.9%
9.2%
14.5%
10.0%
27.6%
3.1%
3.3%
6. 1441 - 1800
23.3%
21.5%
7.4%
3.3%
5.1%
4. 721 - 1080
2.9%
8.3%
4.5%
9.2%
4.9%
8.0%
8.4%
9.1%
5.6%
20.1%
3. 361 - 720
17.3%
2.8%
14.6%
12.5%
2. 181 - 360
9.1%
11.3%
10.5%
7.1%
2.3%
0.9%
1.6% 3.1%
0% 1.3%
PROTECCION
PORVENIR
19.7%
14.6%
7.3%
13.9%
1. 0 - 180
19.4%
7.0%
2.9%
1.8%
1.2%
HORIZONTE
SANTANDER
9.8%
4.5%
1.6%
2.9% 1.2%
SKANDIA PENSIONAR
9.9%
3.7%
SKANDIA PLAN
ALTERNATIVO
0.8%
3.6%
COLFONDOS
10.1%
1.9%
2.0%
SYSTEM
2. VOLUNTARY PENSIONS FUNDS
2.1 VALUE OF THE FUNDS
The total value of the voluntary pension funds administrated by pension fund administrator societies,
fiduciary societies and insurance agencies, as of February 29th 2008 reached the value of USD 3.786
millions, 5.7% more than the value registered as of January 31st (Graph 19).
1,200
GRAPH 19
VALUE OF EACH FUND AND ITS PARTICIPATION WITHIN THE SYSTEM
AS OF FEB.29th 2008 - US MILLION DOLLARS
1,183
1,100
1,000
895
900
800
700
657
31.2%
600
500
23.7%
400
274
179
99
77
78
7.2%
5.2%
100
4.7%
2.6%
2.0%
2.1%
41
40
34
18
10
1.1%
1.0%
0.9%
0.5%
0.3%
FIDUALIANZA ABIERTO
VISION
195
200
CARBONES
17.4%
300
2
0.1%
2
0.1%
FUND VALUE
PERCENTAGE OF PARTICIPATION
FIDUCOR
FIDUPENSIONES
FIDUCOR
MULTIPENSIONES
FIDUPOPULAR PLAN
FUTURO MULTIOPCION
FIDUPOPULAR PLAN
FUTURO
PROTECCION SMURFIT
FIDUCOLOMBIA
RENTAPENSION
COLSEGUROS
SANTANDER
HORIZONTE
COLFONDOS CLASS
FIDUDAVIVIENDA
DAFUTURO
PORVENIR
PROTECCION
SKANDIA MULTIFUND
0
14
3,786
3,581
3,506
3,328
3,388
3,308
3,110
3,400
3,412
3,151
0.5%
Mar-07
3,269
3,135
0.6%-
3,000
5.7%
2.1%
5.4%
1.8%-
8.5%-
1,000
2.4%
6.4%
2.5%-
1,500
0.3%-
2,000
7.0%
2,500
3.7%
US MILLION DOLLARS
3,500
Feb-07
4,000
3,499
V A LUE O F T H E F UN D S
LA S T Y E A R E V O LUT IO N
500
FUNDS VALUE
Feb-08
Jan-08
Dec-07
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
Apr-07
May-07
-
MONTHLY VARIATION
2.2 AFFILIATED
The number of affiliates with the voluntary pensions funds administrated by pension fund administrator
societies, fiduciary societies and insurance agencies as of February 29th 2008 was 512.593, showing an
increase of 5.915 members, compared to the number reported on the final day of the previous month
(graph 20).
100,000
94,083
GRAPH 20
AFFILIATES AND PARTICIPATION OF EACH FUND WITHIN THE SYSTEM
AS OF FEB.29th 2008
91,538
90,000
81,131
80,000
18.4%
17.9%
70,000
15.8%
60,000
57,338
50,000
11.2%
52,675
46,501
45,042
9.1%
8.8%
10.3%
40,000
30,000
17,344
11,166
2.2%
10,000
4,972
1.0%
4,610
0.9%
3,510
0.7%
1,458
0.3%
946
0.2%
153
126
0.0%
0.0%
FIDUCOR MULTIPENSIONES
3.4%
FIDUCOR FIDUPENSIONES
20,000
AFFILIATES
PERCENTAGE OF PARTICIPATION
FIDUPOPULAR PLAN FUTURO
MULTIOPCION
PROTECCION SMURFIT
FIDUALIANZA ABIERTO
VISION
CARBONES
FIDUPOPULAR PLAN FUTURO
COLSEGUROS
SANTANDER
HORIZONTE
FIDUCOLOMBIA
RENTAPENSION
SKANDIA MULTIFUND
COLFONDOS CLASS
PORVENIR
FIDUDAVIVIENDA DAFUTURO
PROTECCION
0
15
506,678
515,000
492,521
490,050
486,511
0.1%
Jul-07
488,304
485,896
0.1%
Jun-07
485,434
490,000
486,449
495,000
489,045
489,219
500,000
495,130
505,000
496,985
510,000
512,593
A F F ILIA T E S LA S T Y E A R E V O LUT IO N
1.2%
Feb-08
0.4%
Dec-07
2.0%
0.5%
Nov-07
Jan-08
0.5%
0.4%
Sep-07
Oct-07
0.4%
Aug-07
0.2%-
475,000
0.0%
0.1%-
480,000
0.5%-
485,000
A FFILIA TES
May-07
Apr-07
Feb-07
Mar-07
470,000
M ONTHLY VA RIA TION
A F F ILIA T E S ' E V O LUT IO N IN T H E LA S F IV E Y E A R S
550,000
482,444
500,000
380,864
10.9%
300,000
250,000
6.2%-
200,000
150,000
4.8%
350,000
1.4%
405,988
400,000
512,593
26.7%
450,000
489,219
100,000
50,000
0
Feb-04
AFFILIATES
Feb-05
Feb-06
Feb-07
Feb-08
VARIATION
50.5% of the affiliates earn an income of less than two minimum wages, 9.2% have an income between
two and four minimum wages and 40.3% earn more than four minimum wages.
66.6% of the affiliated people are between 30 and 54 years old, where, 52.5% are men and 47.5%
women.
72.3% of the affiliates with the system belongs to workers under contract and 27.7% to independent
workers.
2.3 INVESTMENT PORTFOLIO
As of February 29th 2008, the portfolio’s value of the voluntary pensions funds managed by the pensions
funds and unemployment funds managers, fiduciary entities and insurance companies reached USD$
3,808 million, showing an increase of 5.7% compared to the end of the previous month, when it was
USD$ 3,604 million.
At the end as of February 2008, 58.7% of these funds’ portfolios, USD$2,237 million belong to fixed
income investments; 20.7%, USD$ 790 million to investments in equity, 18.9%, $718 million dollars to
16
overnight deposits, 1.5%, $59 million dollars to net position in derivatives and 0.1%, $4 million dollars to
operations report active. (Graph 21 and Chart 2.1).
GRAPH 21
PORTFOLIO DIVERSIFICATION: FIXED INCOME, CHANGEABLE INCOME, OVERNIGHT DEPOSITS AND DERIVATIVES - AS OF FEB 29th 2008 - US
THOUSAND DOLLARS
18.9%
1.5%
20.7%
58.7%
SISTEM A $ 3,808,429
0.1%
5.8%
4.3%
71.4%
18.5%
SKA NDIA - M ULTIFUND $ 1,186,963
55.3%
31.1%
13.6%
P ROTECCION - ESM URfIT $ 34,217
0.2%
0.4%
29.1%
23.9%
46.5%
P ROTECCION $ 905,181
35.7%
38.5%
25.1%
P ORVENIR $ 661,213
0.7%
7.6%
4.7%
87.7%
SA NTA NDER $ 100,109
27.7%
26.8%
45.5%
FIDUCOR - M ULTIP ENSIONES $ 2,483
40.8%
59.2%
FIDUCOR - FIDUP ENSIONES $ 2,106
2.8%
6.5%
90.6%
0.2%
FIDUCOLOM B IA - RENTA P ENSION $ 78,825
78.3%
6.2%
15.5%
FIDUCIA RIA DA VIVIENDA - DA FUTURO $ 274,486
9.9%
90.0%
HSB C
CA RB ONES DEL CERREJON$ 40,923
0.1%
45.4%
4.6%
49.9%
0.1%
FIDUCIA R - M ULTIOP CION $ 10,370
89.0%
11.0%
FIDUCIA R - P LA N FUTURO $ 17,910
1.8%
35.3%
62.6%
0.2%
COLSEGUROS $ 77,342
44.7%
31.0%
23.5%
0.8%
COLFONDOS $ 197,078
18.4%
6.4%
75.3%
B B VA HORIZONTE $ 179,394
14.6%
6.3%
0.1%
77.2%
A LIA NZA - A B IERTO VISION $ 39,830
1.8%
-0.2%
99.8%
Active Report Operations
Derivatives
Overnight Deposits
Changeable Income
Fixed income
The securities issued by Institutions supervised by the Financial Superintendency are the most
significant investments of these funds. As of February 29th 2008, these investments represented 33.1%,
followed by the overnight deposits with 18.9%, the external investments represent 18%, the Institutions
watched by other regulatory authority 14% and Debt public investment with 14.3% (national debt
represents 9.5%, external national debt 2.7% and territorial organizations and decentralized entities
2.2%). (Graph 22 and Chart 2.1).
GRAPH 22
PORTFOLIO'S CLASIFICATION : BY ISSUER - AS OF FEB 29th 2008 - US THOUSAND DOLLARS
1.5% 2.2% 2.7%
9.5%
18.0%
14.0%
33.1%
18.9%
0.3%
SISTEM A
4.3% 1.7%
7.7% 2.6%
10.4%
5.8%
30.1%
$ 3,808,429
37.5%
SKA NDIA - M ULTIFUND $ 1,186,963
1.5%
22.1%
13.6%
4.2%
34.3%
24.2%
P ROTECCION - ESM URfIT $ 34,217
0.4%
1.8%
16.0%
18.7%
23.9%
11.0%
28.0%
P ROTECCION $ 905,181
0.2%
0.3% 0.3% 6.3%
0.7%
35.7%
21.4%
16.5%
18.8%
P ORVENIR $ 661,213
41.7%
4.7%
9.5%
10.8%
24.3%
7.6%
1.4%
SA NTA NDER $ 100,109
31.0%
27.7%
8.3%
33.0%
FIDUCOR - M ULTIP ENSIONES $ 2,483
40.8%
59.2%
FIDUCOR - FIDUP ENSIONES $ 2,106
1.1%
0.2%
0.0%
5.4%
6.4%
15.8%
2.9%
6.5%
61.8%
FIDUCOLOM B IA - RENTA P ENSION $ 78,825
8.2%
7.5%
17.2%
15.5%
2.4%
49.2%
FIDUCIA RIA DA VIVIENDA - DA FUTURO $ 274,486
0.1%
3.4%
7.6%
2.3%
20.7%
0.4%
58.9%
HSB C
CA RB ONES DEL CERREJON$ 40,923
45.4%
4.2%
8.1%
9.9%
38.8%
FIDUCIA R - M ULTIOP CION $ 10,370
0.1%
4.8%
11.0%
81.1%
1.6%
FIDUCIA R - P LA N FUTURO $ 17,910
0.2% 3.0%
6.0%
7.1%
10.3%
31.1%
1.8%
40.3%
COLSEGUROS $ 77,342
0.8% 2.6% 0.2% 4.0%
0.4%
0.8% 2.8%0.6%
25.1%
8.6%
44.7%
13.6%
COLFONDOS $ 197,078
5.1%
19.0%
4.0%
18.4%
49.4%
B B VA HORIZONTE $ 179,394
0.1% 5.3% 4.5%
6.5%
3.3%
6.3%
71.4%
2.6%
A LIA NZA - A B IERTO VISION $ 39,830
-2%
98%
Others (1)
Domestic debt securities issued under Law 80/93 and Decree 2681/93
Internal Public Debt
External Investment
Institutions supervised by the Financial Superintendency
(1) Fogafin and operations report active
Derivatives
External Public Debt
Institutions w atched by other regulatory authority
Overnight Deposits
17
80.3% of the above mentioned portfolio is denominated in Colombian pesos, 15.2% in US Dollars, 2.5%
in UVR, 1.6% in Euros and the remaining 0.4% in British pound and Yen (Graph 23).
GRAPH 23
PORTFOLIO'S CLASIFICATION: BY CURRERNCY - AS OF FEB 29th 2008 - US THOUSAND DOLLARS
15.2%
1.6% 2.5%
80.3%
SISTEMA $3,808,429
0.4%
3.1% 0.8%
72.8%
23.0%
SKANDIA - MULTIFUND $1,186,963
0.4%
92.1%
4.4% 3.6%
PROTECCION - ESMURfIT $34,217
1.7% 4.3%
82.5%
10.5%
1.0%
PROTECCION $905,181
2.4%
76.2%
20.4%
PORVENIR $661,213
0.9%
0.2% 3.9%
0.1%
5.0%
90.7%
SANTANDER $100,109
91.7%
8.3%
FIDUCOR - MULTIPENSIONES $2,483
100.0%
FIDUCOR - FIDUPENSIONES $2,106
4.1%
88.6%
7.3%
FIDUCOLOMBIA - RENTAPENSION $78,825
95.7%
2.4% 1.8%
FIDUCIARIA DAVIVIENDA - DAFUTURO $274,486
96.4%
3.6%
HSBC
CARBONES DEL CERREJON$40,923
92.9%
2.8% 4.2%
FIDUCIAR - MULTIOPCION $10,370
98.4%
1.6%
FIDUCIAR - PLAN FUTURO $17,910
1.8%
91.2%
7.0%
COLSEGUROS $77,342
2.1%
21.5%
75.2%
1.2%
COLFONDOS $197,078
5.6%
89.9%
4.5%
BBVA HORIZONTE $179,394
93.2%
1.8% 1.8%3.2%
ALIANZA - ABIERTO VISION $39,830
0%
100%
Others (1)
Euro
UVR
US Dollar
Col Peso (includes derivatives net position)
(1) British pound and Yen
Concerning to foreign currency position, it is observed that 55.9% is covered from the exchange rate
fluctuation risk. The uncovered part represents 7.5% of the funds’ total value (Chart 4).
On the one hand, 21.2% of the portfolio is invested in fixed income securities denominated in Colombian
pesos, 18.9% in overnight deposits, 13.7% is linked to the DTF, 11.3% invested in Stocks, 9.5% in
Shares (Derived from securitization processes, Mutual Funds, unit trust funds and Indexed Funds), 8.6%
is linked to CPI, 5.8% is invested in fixed income denominated in US Dollar, 3% in Libor, 2.5% in fixed
income investments linked to UVR, and the rest (5.4%) are fixed income securities denominated in Euro,
net position in derivatives and operations de report actives.(Graph 24 and Chart 2.2).
18
GRAPH 24
PORTFOLIO'S CLASIFICATION: FLAT RATE BY CURRENCY, CHANGEABLE INCOME, OVERNIGHT DEPOSITS - AS OF FEB 29th 2008 - US
THOUSAND DOLLARS
2.5% 3.0% 5.8%
8.6%
13.7%
9.5%
11.3%
21.2%
18.9%
5.4%
SISTEM A $3,808,429
9.6%
0.8%
7.1%
6.8%
8.9%
9.6%
23.6%
5.8%
12.1%
15.7%
SKANDIA - M ULTIFUND $1,186,963
4.4% 2.2%
29.3%
17.6%
1.8%
7.1%
24.1%
13.6%
PROTECCION - ESM URfIT $34,217
17.6%
4.3% 1.5% 4.4%
13.7%
11.5%
22.6%
23.9%
0.5%
PROTECCION $905,181
2.4%
5.1%
16.5%
5.3%
11.6%
13.4%
35.7%
8.2%
1.7%
PORVENIR $661,213
3.9% 2.6%
27.4%
1.2%
3.5%
40.8%
7.6%
12.8%
0.3%
SANTANDER $100,109
13.4%
17.9%
8.9%
11.2%
20.9%
27.7%
FIDUCOR - M ULTIPENSIONES $2,483
25.8%
33.4%
40.8%
FIDUCOR - FIDUPENSIONES $2,106
4.1%
15.3%
5.4%
0.2% 2.7%
6.5%
48.1%
17.7%
0.2%
FIDUCOLOM BIA - RENTAPENSION $78,825
26.5%
2.4%
32.1%
3.6% 2.5%
27.9%
3.6% 4.2%
17.3%
15.5%
FIDUCIARIA DAVIVIENDA - DAFUTURO
$274,486
54.3%
9.9%
HSBC
CARBONES DEL CERREJON$40,923
0.1%
4.6%
12.7%
2.8%
26.3%
8.1%
45.4%
0.1%
FIDUCIAR - M ULTIOPCION $10,370
26.0%
1.6% 4.7%
56.6%
11.0%
FIDUCIAR - PLAN FUTURO $17,910
1.8%
6.8%
4.3% 3.5% 1.8%
31.0%
7.5%
43.0%
COLSEGUROS $77,342
0.2%
2.1%0.9% 6.0%
0.8%
5.6% 1.1% 0.6%
22.1%
8.9%
7.0%
44.7%
7.5%
COLFONDOS $197,078
11.5%
3.4% 2.9%
42.1%
18.4%
14.4%
BBVA HORIZONTE $179,394
1.8% 3.2%
26.3%
12.5%
41.7%
2.1%
6.3%
4.3%
1.9%
ALIANZA - ABIERTO VISION $39,830
-1%
Others (1)
99%
Flat Rate - UVR
Libor
Flat Rate - US Dollar
IPC, IPM
STOCKS
Shares
DTF
Overnight Deposits
Flat Rate - Col Peso
´(1) Securitization, Mutual Funds, Index Funds and Unit Trust Funds
´(2) Fixed income Euros, Derivatives Net Position and operations report active
On the other hand, 36.8% of the fixed income securities’ portfolio has a remaining maturity of 180 days,
7.4% between 181 and 360 days, 21% between 361 and 720 days, 9.4% between 721 and 1080 days,
8% between 1081 and 1440 days, 6.4% between 1441 and 1800 days, 1.5% between 1801 and 2160
days, 4.3% between 2161 and 2880 days, 3.4% between 2881 and 3600 days and 1.7% has a
remaining maturity superior to 10 years (Graph 25 and Chart 2.3).
19
GRAPH 25
FIXED RATE PORTFOLIO BY REMAINING MATURITY DAYS - AS OF FEB 29th 2008
36.8%
7.4%
21.0%
9.4%
6.4%
8.0%
1.5% 4.3% 3.4% 1.7%
SYSTEM A
30.3%
19.5%
6.5%
8.0%
12.9%
8.9%
7.3%
2.2% 1.6%
2.7%
SKANDIA - M ULTIFUND
6.1%
33.5%
7.4%
24.4%
5.7%
10.2%
12.6%
PROTECCION - ESM URfIT
43.2%
8.9%
26.7%
6.5%
1.4% 2.7% 0.4% 9.2%
0.9% 0.3%
PROTECCION
49.1%
4.7%
22.3%
10.8%
3.7%
19.0%
9.5%
3.5%
10.8%
10.8%
2.2% 4.6%
11.7%
1.8%
13.6%
6.5%
5.4%
1.3%
1.7%
PORVENIR
7.1%
SANTANDER
58.3%
12.3%
17.1%
6.9%
5.3%
FIDUCOR - M ULTIPENSIONES
97.0%
3.0%
FIDUCOR - FIDUPENSIONES
21.8%
11.3%
36.8%
39.8%
14.2%
10.3%
9.3%
25.6%
5.3%0.6%2.3%0.7%
1.5%
FIDUCOLOM BIA - RENTAPENSION
5.4%
9.0%
5.1%
0.9%
FIDUCIARIA DAVIVIENDA - DAFUTURO
51.6%
14.2%
45.3%
21.4%
11.6%
0.8% 2.3%1.0% 3.6%
26.5%
HSBC
CARBONES DEL CERREJON
10.8%
10.9%
FIDUCIAR - M ULTIOPCION
72.2%
15.5%
8.7%
1.9% 1.7%
FIDUCIAR - PLAN FUTURO
56.9%
7.2%
2.9%
3.0% 1.2% 2.0%0.8%
16.4%
9.6%
COLSEGUROS
6.4%
16.7%
32.7%
5.7%
21.4%
1.7%2.1% 3.0% 2.4%
7.9%
COLFONDOS
42.1%
17.7%
18.5%
5.6%
6.3%
3.0%1.2%
5.3% 0.2%
BBVA HORIZONTE
34.4%
16.4%
4.9% 1.3% 3.9%
18.0%
18.9%
2.3%
ALIANZA - ABIERTO VISION
0%
100%
1. 0 - 180
2. 181- 360
3. 361- 720
4. 721- 1080
5. 1081- 1440
6. 1441- 1800
7. 1801- 2160
8. 2161- 2880
9. 2881- 3600
9.1> 3600
3. UNEMPLOYMENT FUNDS
3.1 RETURN
Between February 28th 2006 and February 29th 2008, the funds had an average return of -0.69% annual
effective, which equals to a real return of -8.60%. It is noteworthy to emphasize that these returns
oscillated between -1.53% and 1.70% (graph 26).
G R Á F IC O 2 6 .
F UN D S ' R E T UR N F E B .2 8 t h/ 0 6 T O F E B .2 9 t h/ 0 8
4.00%
2.00%
1.70%
0.06%
0.00%
0.40%0.82%-
-2.00%
0.99%-
1.53%-
0.69%-
-4.00%
NOM INA L RETURN
6.42%-
6.93%-
6.14%-
COLFONDOS
HORIZONTE
PROMEDIO (*)
8.60%-
6.26%PROTECCION
MINIMUM
RETURN
5.86%-
5.43%SANTANDER
-10.00%
PORVENIR
3.88%-
-8.00%
SKANDIA
-6.00%
3.30%-
REA L RETURN
(*) Weighed by equity’s average daily balance
The mandatory minimum return certified by the Financial Superintendency for the above mentioned
period was -3.30% annual effective.
20
EVOLUTION OF THE UNEMPLOYMENT FUNDS' ACCUMULATED RETURNS
11.00%
10.00%
9.00%
8.00%
RETURN ACCUMULATIVE
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
-1.00%
-2.00%
Feb-07
Mar-07
Apr-07
May-07
PROTECCION
Jun-07
PORVENIR
Jul-07
Aug-07
HORIZONTE
Sep-07
Oct-07
SANTANDER
Nov-07
Dec-07
Jan-08
COLFONDOS
Feb-08
SKANDIA
3.2. RETURN AND VOLATILITY
3.2.1 MONTHLY RETURN AND VOLATILITY
The monthly average return of the unemployment funds during the last twenty-four months, was between
-1.19% and 2,01% (annual effective), with annualized volatilities of 3,44% and 4.11% respectively. The
return and volatility for each one of those funds are shown in graph 27.
GRAPH 27
UNEMPLOYMENT FUNDS
MONTHLY AVERAGE RETURN AND VOLATILITY - FEBRUARY 28 2006 - FEBRUARY 29 2008
Monthly average return (annual ffective)
2.00%
Skandia
1.70%
1.40%
Santander
1.10%
PORTFOLIO
OF REFERENCE
0.80%
0.50%
Porvenir
0.20%
-0.10%
-0.40%
Protección
-0.70%
Colfondos
Horizonte
-1.00%
-1.30%
3.40%
3.70%
4.00%
4.30%
4.60%
4.90%
VOLATILENESS
5.20%
5.50%
5.80%
21
3.2.2 ACCUMULATED RETURN AND VOLATILITY
The accumulated average return of the unemployment funds during the last twenty-four months, was
between the 5.70% and 8,84% (annual effective), with annualized volatility of 3,52% and 4.70%,
respectively. The average return and volatility for each one of those funds are shown in graph 28.
ACCUMULATED RETURN AVERAGE(*)
GRAPH 28
UNEMPLOYMENT FUNDS
ACCUMULATED RETURN AVERAGE AND VOLATILITY
FEBRUARY 28th 2006 - FEBRUARY 29th 2008
9.00%
8.80%
8.60%
8.40%
8.20%
8.00%
7.80%
7.60%
7.40%
7.20%
7.00%
6.80%
6.60%
6.40%
6.20%
6.00%
5.80%
5.60%
5.40%
5.20%
5.00%
4.80%
4.60%
4.40%
4.20%
4.00%
Skandia
Porvenir
Santander
Horizonte
Protección
Colfondos
PORTFOLIO
OF REFERENCE
3.00%
3.20%
3.40%
3.60%
3.80%
4.00%
4.20%
4.40%
4.60%
4.80%
5.00%
5.20%
VOLATILITY
(*) It belongs to the accumulated return of the last 24 months
3.3 VALUE OF THE FUNDS
As of February 29th, 2008 the amount of USD 2.864 millions, USD 971 millions more than the value
registered as of January 31st, in other words, 51.3%. Regarding the same month in 2007, the funds have
had an increase of 25%, which is equal to 573 US million dollars (graphs 29 and 30).
GR A P H 29.
V A LUE O F E A C H F UN D A N D IT S P A R T IC IP A T IO N WIT H IN T H E S Y S T E M A S O F F E B .2 9 T H 2 0 0 8 - US M ILLIO N D O LLA R S
1,000
31.5%
900
25.1%
800
700
18.3%
59
2.1%
11.0%
525
300
12.0%
FUND VA LUE
P ERCENTA GE OF P A RTICIP A TION
344
315
COLFONDOS
HORIZONTE
PROTECCION
0
PORVENIR
100
SANTANDER
200
SKANDIA
400
720
500
902
600
22
2,864
GR A P H 30.
V A LUE O F T H E F UN D S ' LA S T Y E A R E V O LUT IO N
US M ILLIO N D O LLA R S
51.3%
1,893
1,887
1,887
1,964
1,964
1,886
2,151
2,216
2,358
2,211
2,204
0.3%
0.0%
0.0%
Oct-07
3.9%-
4.1%
Sep-07
2.9%Jul-07
12.3%-
6.0%Jun-07
6.7%
0.3%
Apr-07
1,000
3.8%-
1,500
Mar-07
2,000
39.3%
2,500
2,291
3,000
500
FUNDS VALUE
Feb-08
Jan-08
Dec-07
Nov-07
Aug-07
May-07
Feb-07
0
MONTHLY VARIATION
3.4 AFFILIATES
The number of people affiliated with the funds as of February 29th 2008 was 5.006.558, with a crease of
25.4%, that is, 1.015.598 less people compared to the ones that were with the funds as of January 31st .
(Graph 31). Taking into account the same month in 2007, the funds have had an increase of 9.3%, in
other words, 427.6472 affiliates.
GR A P H 31
A F F ILIA T E S A N D P A R T IC IP A T IO N O F E A C H F UN D WIT H IN T H E
S Y S T E M - A S O F F E B .2 9 T H 2 0 0 8
1,600,000
30.8%
1,400,000
12.4%
200,000
34,867
0.7%
400,000
12.6%
628,690
600,000
1,057,355
800,000
21.1%
1,120,629
1,543,745
1,000,000
621,272
22.4%
1,200,000
SKANDIA
COLFONDOS
SANTANDER
P ERCENTA GE OF P A RTICIP A TION
3,990,960
3,983,887
4,017,098
4,100,000
4,037,387
4,078,045
4,129,922
4,196,664
4,264,601
4,341,806
4,427,219
4,507,429
4,900,000
4,578,911
A F F ILIA T E S
LA S T Y E A R E V O LUT IO N
5,006,558
A FFILIA TES
HORIZONTE
PORVENIR
PROTECCION
0
1.8%-
1.6%-
1.6%-
1.3%-
1.0%-
0.5%-
0.8%-
0.2%
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
25.4%
1.9%-
1.8%Apr-07
May-07
1.6%-
1,700,000
Mar-07
2,500,000
23.6%
3,300,000
900,000
A FFILIA TES
M ONTHLY VA RIA TION
Feb-08
Feb-07
100,000
23
AFFILIATES' EVOLUTION IN THE LAST FIVE YEARS
6,000,000
9.3%
5,000,000
9.8%
10.9%
4,000,000
6.1%
8.6%
3,000,000
Feb-04
Feb-05
MEN
Feb-06
WOMEN
Feb-07
TOTAL
5,006,558
1,677,500
3,329,058
4,578,911
1,578,193
3,000,718
4,169,265
1,486,063
2,683,202
3,761,071
1,339,446
2,421,625
3,546,218
0
1,283,798
1,000,000
2,262,420
2,000,000
Feb-08
% VARATION
96.2% of the total members are dependent workers, 2.4% are voluntary members and 1.4% are
independent workers. On the other hand, 66.5% of the funds’ members are men and 33.5% women
(Chart 3.2).
3.5 INVESTMENT PORTFOLIO
As of February 29th 2008, the portfolio’s value of the unemployment funds was USD$ 2,882 million. The
71.1% of the above mentioned funds’ portfolio, that is, USD$ 2,049 million belongs to fixed income
investments; 15.4%, USD$ 443 million to investments in equity, 12.8%, USD$ 370 million to overnight
deposits, 0.5%, 13 million to net position in derivatives (right less obligations) and Active Report
Operations 0.2%(Chart 3.3 and Graph31)
GRAPH 31
PORTFOLIO DIVERSIFICATION: FIXED INCOME, CHANGEABLE INCOME, OVERNIGHT DEPOSITS AND DERIVATIVES - AS OF
FEB 29th 2008 - US THOUSAND DOLLARS
100%
Fixed income
64.9%
67.6%
Changeable
Income
67.7%
74.4%
71.1%
73.8%
85.0%
Overnight
Deposits
Derivatives
13.3%
13.2%
20.2%
13.1%
Active Report
Operations
21.4%
19.0%
12.3%
0%
0.4%
BBVA
HORIZONTE
526,580
0.2%
0.5%
COLFONDOS
316,468
SANTANDER
345,827
0.7%
PORVENIR
910,696
12.8%
11.6%
11.4%
1.9%
0.3%
15.4%
17.5%
4.7%
4.0%
0.1%
PROTECCION
723,294
SKANDIA
59,455
0.2%
0.5%
SISTEMA
2,882,319
24
FIXED INCOME, EQUITY, OVERNIGHT DEPOSITS AND DERIVATIVES NET
POSITION TOTAL PORTFOLIO'S LAST YEAR EVOLUTION - US MILLION
DOLLARS
100%
85%
70%
55%
40%
25%
10%
-5%
Feb-07
2,305
M ar-07
2,222
A P R-07
2,221
M ay-07
2,387
Derivatives
Jun-07
2,243
Jul-07
2,160
A UG-07
1,903
Sep-07
1,985
Overnight Deposits
Oct-07
1,968
No v-07
1,896
Dec-07
1,896
Changeable Income
Jan-08
1,904
Feb-08
2,882
Fixed income
The investments in public debt are the most important ones within these funds. As of February 29th
2008, this investments represented 40.6% of the portfolio’s total value (national debt represents 35.3%,
external national debt 1.1% and territorial organizations and their decentralized 4.3%), followed by the
securities issued by the institutions supervised by the Financial Superintendency with 23.2%, the
Institutions supervised by other regulatory authorities with 13.2%, overnight deposits with 12.8% and
external investments with 9.3% and (Graph 32)
GRAPH 32
99.0%
PORTFOLIO'S
CLASIFICATION
: BY ISSUER - AS OF FEB 29th 2008 - US THOUSAND DOLLARS
Internal Govermment
Debt
100.0%
Institutions
Internal
Public Debt
watched by other
regulatory authority
30.7%
26.4%
31.7%
32.7%
33.7%
35.3%
Institutions supervised by the
Financial Superintendency
Institutions watched by the
Financial Supervision
59.5%
Institutions watched by other
regulatory authority
External
Public
Overnight
Deposits
21.9%
22.0%
Debt
21.6%
19.7%
23.2%
33.0%
8.8%
External Investment
Other public debt titles
12.6%
11.5%
13.2%
12.3%
Domestic debt securities
issued under Law 80/93 and
Decree 2681/93
International
External
Public Debt
4.7%
13.9%
11.8%
14.0%
Investment
11.4%
19.0%
21.4%
5.1%
11.6%
1.9%
Others (1)
9.2%
7.4%
16.0%
17.4%
3.5%
4.1%
Others (1)
9.3%
6.1%
Overnigth Deposits
0.0%
12.8%
13.1%
1.2%
5.8%
6.2%
0.5%
0.2%
-1.0%
BBVA
HORIZONTE
526,580
(1) FOGAFIN AND DERIVATIVES NET POSITION
0.5%
COLFONDOS
316,468
1.2%
SANTANDER
345,827
COLFONDOS
$ 252,113
0.7%
3.0%
0.9%
PORVENIR
910,696
HORIZONTE
$ 421,068
4.3%
4.3%
1.0%
4.0%
0.9%
PROTECCION
723,294
PORVENIR
$ 662,463
SKANDIA
59,455
1.1%
PROTECCION
$ 516,388
0.8%
SISTEMA
2,882,319
SANTANDER
$ 264,935
SKANDIA
$ 43,288
25
TOTAL PORTFOLIO'S LAST YEAR EVOLUTION BY ISUUER
US MILLION DOLLARS
60%
50%
40%
30%
20%
10%
0%
Feb-07
2,305
Mar-07
2,222
APR-07 May-07
2,221
2,387
Jun-07
2,243
Jul-07
2,160
AUG-07 Sep-07
1,903
1,985
Oct-07
1,968
Nov-07
1,896
Dec-07
1,896
Jan-08
1,904
Feb-08
2,882
Others (1)
International Investment
Institutions w atched by other regulatory authority
Institutions w atched by the Financial Supervision
Internal Public Debt
Domestic debt securities issued under Law 80/93 and Decree 2681/93
External Public Debt
78.7% of the above mentioned portfolio is denominated in Colombian pesos, 11.6% in UVR, 8.9% in US
Dollar, 0.8% in Euros and yen. (Graph 33)
GRAPH 33
PORTFOLIO'S CLASIFICATION: BY CURRERNCY
AS OF FEB 29th 2008 - US THOUSAND DOLLARS
100%
Col Peso
(includes
derivatives net
position)
UVR
62.4%
71.5%
79.2%
82.3%
78.7%
82.9%
86.2%
US Dollar
Euro
13.5%
11.8%
Others (1)
11.5%
10.0%
7.1%
BBVA
HORIZONTE
526,580
(1) Yen
5.9%
0.2%
0%
0.6% 0.3%
COLFONDOS
316,468
11.6%
17.1%
14.1%
10.6%
16.8%
3.2%
1.0%
0.4%
SANTANDER
345,827
8.9%
3.7%
PORVENIR
910,696
7.0%
0.9%
PROTECCION
723,294
0.5%
SKANDIA
59,455
SISTEMA
2,882,319
0.3%
26
TOTAL PORTFOLIO'S LAST YEAR EVOLUTION BY CURRENCY
US MILLION DOLLARS
80%
70%
60%
50%
40%
30%
20%
10%
0%
Feb-07
2,305
M ar-07 A P R-07 M ay-07
2,222
2,221
2,387
EURO
Jun-07
2,243
UVR
Jul-07
2,160
A UG-07
1,903
Sep-07
1,985
US DOLLAR
Oct-07
1,968
No v-07
1,896
Dec-07
1,896
Jan-08
1,904
Feb-08
2,882
COL PESO
In terms of the foreign currency position, it is observed that 74.7% is covered from the exchange rate
fluctuation risk and the uncovered part represents 2.4% of the funds’ total value (Graph 34 and Chart 4)
EVOLUTION OF THE UNEMPLOYMENT FUND'S ACCUMULATED RETURNS
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.4%
3.2%
2.5%
1.9%
1.5%
1.3%
3.0%
2.0%
1.0%
0.0%
Feb-07
Mar-07
Abr-07
May-07
Jun-07
Jul-07
Ago-07
Sep-07
Oct-07
Nov-07
Dic-07
Ene-08
PROTECCION
PORVENIR
HORIZONTE
SANTANDER
SKANDIA
COLFONDOS
Feb-08
On the other hand, 33.2% of the portfolio is invested in fixed income issues denominated in Colombian
pesos, 16.3% is linked to CPI, 11.6% is invested in fixed income linked to UVR, 12.8% in Overnight
deposits, 8% of the portfolio is invested in stocks, 7.4% in Shares (Derived from securitization processes,
Mutual Funds, unit trust funds, and Indexed Funds), 6.5% linked to DTF, 2.9% in fixed income
denominated in US Dollar and the remaining 1.4% are securities denominated Libor, fixed income issues
denominated in Euros, and net position in derivatives. (Graph 35 and Chart 3.4)
27
GRAPH 35
PORTFOLIO'S CLASIFICATION: FLAT RATE BY CURRENCY, CHANGEABLE INCOME, OVERNIGHT DEPOSITS - AS OF
FEB 29th 2008 - US THOUSAND DOLLARS
100.00%
11.3%
Flat Rate - Col Peso
23.6%
25.7%
28.9%
33.2%
IPC, IPM
17.3%
44.9%
50.7%
Flat Rate - UVR
19.0%
16.5%
Overnight Deposits
13.5%
17.2%
16.3%
4.7%
STOCKS
10.6%
11.8%
Shares
11.6%
11.4%
18.4%
DTF
9.8%
11.5%
21.4%
6.5%
8.0%
19.0%
Flat Rate - US Dollar
10.0%
7.9%
8.0%
5.6%
9.6%
7.2%
BBVA HORIZONTE
526,580
(1)
7.3%
5.9%
6.6%
0.7%
4.4%
1.1%
2.4%
7.4%
4.5%
5.9%
0.4%
10.9%
9.9%
Others (1)
0.00%
6.7%
11.6%
7.7%
5.4%
12.8%
12.2%
1.9%
Libor
1.7%
0.4%
7.8%
12.6%
14.1%
0.7%
0.9%
COLFONDOS
316,468
0.4%
0.5%
1.4%
SANTANDER
345,827
PORVENIR
910,696
0.9%
PROTECCION
723,294
6.5%
11.6%
2.9%
1.0%
0.3%
SKANDIA 59,455
SISTEMA
2,882,319
Libor, Euros and Derivatives net position
FIXED INCOME BY INTEREST RATE TYPE , EQUITY, OVERNIGHT DEPOSITS AND
DERIVATIVES NET POSITION TOTAL PORTFOLIO'S LAST YEAR EVOLUTION
US MILLION DOLLARS
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Feb-07
2,305
Mar-07
2,222
APR-07
2,221
May-07
2,387
Jun-07
2,243
Jul-07
2,160
AUG-07
1,903
Sep-07
1,985
Oct-07
1,968
Nov-07
1,896
Dec-07
1,896
Jan-08
1,904
Others
Flat Rate - Col Peso
IPC
Flat Rate - UVR
DTF
Flat Rate - US Dollar
Shares
STOCKS
Feb-08
2,882
In terms of the portfolio’s classification by credit risk, it is observed that 50.9% are securities issued by
the Nation, 25.1% of the investments have a AAA qualification, 3.9% are investments that do not require
qualification, 6.5% has a AA+ qualification and 13.6% belong to securities issued by Fogafin, with
qualification AA, AA-, A+, A, A1, BBB, BBB- and retired qualification (Graph 36)
28
GRAPH 36
PORTFOLIO'S CLASIFICATION: BY CREDIT RISK - AS OF FEB 29th 2008
100%
NATION
43.9%
47.8%
49.2%
50.6%
50.9%
59.4%
AAA
69.7%
DO NOT
REQUIRED (1)
17.3%
AA+
25.1%
28.5%
8.8%
OTHERS (2)
34.0%
15.6%
14.1%
1.9%
6.1%
12.7%
7.6%
14.3%
(1)
(2)
6.5%
0.8%
4.4%
13.6%
4.8%
4.9%
PORVENIR
5.9%
3.8%
0.6%
PROTECCION
3.9%
19.1%
29.9%
0%
37.8%
HORIZONTE
SANTANDER
6.4%
SKANDIA
COLFONDOS
SYSTEM
Investments: Unit Trust Funds, Mutual Funds, Index Funds and Stocks
Fogafin, AA, AA-, A+, A, 1+, BBB, BBB- and retired qualification
Finally, it is important to mention that 15.2% of the fixed income portfolio has a remaining maturity of 180
days, 3.4% between 181 and 360 days, 18.4% between 361 and 720 days, 17.9% between 721 and
1,080 days, 6.6% between 1,081 and 1,440 days, 7.8% between 1,441 and 1800 days, 4.6% between
1801 and 2,160 days, 17.6% between 2,161 and 2,880 days, 4.6% between 2881 and 3.600 days and
3.9% has a remaining maturity of 10 years or higher (Graph 37 and Chart 3.5).
GRAPH 37
FIXED RATE PORTFOLIO BY REMAINING MATURITY DAYS - AS OF FEB 29th 2008
100.0%
3.4%
3.2%
9.1 > 3600
2.7%
6.8%
2.5%
3.3%
2.0%
3.9%
8.1%
4.8%
14.8%
19.3%
17.6%
11.6%
4.3%
4.6%
9.3%
4.6%
2.2%
16.6%
9. 2881 - 3600
17.7%
21.3%
14.4%
2.8%
8. 2161 - 2880
6.2%
3.1%
5.0%
4.8%
7. 1801 - 2160
2.8%
14.0%
9.0%
11.5%
13.3%
4.2%
4.0%
6.6%
5.5%
4.2%
6. 1441 - 1800
7.8%
4.1%
6.8%
7.6%
5. 1081 - 1440
24.3%
19.4%
17.9%
31.8%
14.6%
25.0%
16.8%
4. 721 - 1080
4.3%
3. 361 - 720
18.4%
15.2%
2. 181 - 360
27.8%
1. 0 - 180
17.1%
0.8%
3.3%
15.3%
11.5%
11.3%
32.2%
17.1%
5.0%
2.2%
3.6%
3.5%
2.5%
0.0%
PROTECCION
PORVENIR
3.4%
10.2%
HORIZONTE
SANTANDER
SKANDIA
15.2%
8.0%
COLFONDOS
SYSTEM
29
4. PAY AS YOU GO REGIME
4.1 PENSION RESERVE FUND´S EQUITY
Pay as you go pension reserve fund’s equity to the closing of the month of February 2008 it reported a
balance of USD 1,473.7 million dollars, superior value in USD 85.2 million dollars related to the one
registered in January of 2008, which is equal to a increase of 6,14% (graphical 38). The total of reserves
to February 29 of 2008 is distributed thus: Retirement Age, USD 1,450.0 million dollars, Invalidity, USD
11.0 million dollars and Survival, USD 34.6 million dollars (chart 5).
47.27%
1,000
27.71%
69.6
63.3
75.9
68.5
44.4
41.1
10
4.73%
5.15%
3.01%
178.8
169.0
408.4
395.0
100
696.6
12.14%
651.5
Million Dollars
GRAPH 38
RESERVE FUNDS' EQUITY
1
ISS
CAPRECOM
CAXDAC
Jan-08
P. ANTIOQUIA
Feb-08
FONPRECON
CAJANAL
Participation to February 2008
LAST YEAR EVOLUTION OF RESERVE'S FUNDS EQUITY
6.14%
1,473.7
5.46%
1,388.5
1,316.6
3.98%
1,266.3
1,321.0
1,218.5
1,277.4
Mar-07
1,113.6
Feb-07
600.0
2.24% -4.43%
1,324.9
-8.52%
7.23%
1,295.8
-4.61%
8.41%
1.33% 3.67%
1,074.2
900.0
1.33%
1,060.1
Milion Dolars
1,200.0
14.71%
1,208.5
1,500.0
300.0
0.0
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
EQUITY VALUE
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
MONTHLY VARIATION
Source: Supervised Entities
4.2 AFFILIATES
According to the data sent by the administrator entities of the above mentioned Regime, for December
2007 and January 2008, the total number of affiliates was 6.122.290 and 6,136,783, respectively, which
equals to an increase of 14,492 affiliates, representing 0,24%.
10,000,000
GRAPH 39
AFFILIATES
98.94%
1,000,000
0.98%
719
0.01%
719
1,056
10
0.02%
1,056
1,236
0.02%
1,246
1,926
60,001
0.03%
2,036
100
60,000
1,000
6,071,845
10,000
6,057,233
100,000
1
ISS
CAJANAL (1 )
Dec-07
CAPRECOM
Jan-08
P. ANTIOQUIA
CAXDAC
FONPRECON (2)
Participation to January 2008
(1) “CAJANAL”´s data is included taking into account preliminary information
(2) “FONPRECON”´s data is in process of evaluation which is composed as follows: In December 2007, 111 belong to Law 4th of
1992 (Members of the “Congreso de la República”) and 608 to Law 100 of 1993 (Administrative Personal of the “Congreso de
la República” and “Fondo de Previsión Social”); in January 2008 the distribution was: 109 and 610, respectively.
30
LAST YEAR EVOLUTION AFFILIATES'
0.11% 0.06%
0.01%
1.07% 0.11%
0.24%
0.07% 0.12%
0.08% 0.06% 0.07%
0.10%
0.24%
6,108,198
6,111,816
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
6,136,783
6,103,456
May-07
6,122,290
6,096,216
Mar-07
2,000,000
6,092,235
6,006,601
Feb-07
3,000,000
6,077,640
6,006,159
Jan-07
4,000,000
6,070,854
6,002,842
5,000,000
6,116,084
6,000,000
Dec-07
Jan-08
1,000,000
0
Apr-07
AFFILIATES
Nov-07
MONTHLY VARIATION
Source: Supervised Entities
AFFILIATES EVOLUTION'S TO THE "ISS", LAST FIVE YEARS,
BY THE GENDER
7,000,000
6,071,845
2,418,175
3,653,670
5,934,842
2,390,234
3,544,608
5,817,953
2,375,262
3,442,691
5,625,291
2,339,775
3,000,000
3,285,516
5,633,275
4,000,000
2,340,978
5,000,000
3,292,297
AFFILIATES
6,000,000
2,000,000
1,000,000
0
Jan-04
Jan-05
Jan-06
MEN
Jan-07
WOMEN
Jan-08
TOTAL
Source: Supervised Entities
The total amounts who quote in January 2008 were USD 124.377 thousand dollars. The variations by
gender of the total of affiliates, between the months of December 2007 and January in 2008, are these
ones: (See the details by each Administrator as it’s shown in chart 6).
Affiliated Men
Quoting
Affiliated Women
Non Quoting
Quoting
Non Quoting
TOTALES
Quoting
Non Quoting
Great Total
TOTALS DECEMBER/07
1,200,782
2,506,511
705,381
1,709,616
1,906,163
4,216,127
6,122,290
TOTALS JANUARY/08
1,201,376
2,514,931
681,616
1,738,859
1,882,992
4,253,790
6,136,782
594
0.05%
8,420
0.34%
-23,765
-3.37%
29,243
1.71%
-23,171
-1.22%
37,663
0.89%
14,492
0.24%
VARIATIONS:
ABSOLUTE VARIATION
PERCENTAGE VARIATION
In January of 2008, 37,1% of the total of affiliates with the “ISS”, are active, that represents 2.252.125,
and 62,9%, which is equal to, 3.819.720 are inactive. Inactive affiliates are those ones who did not make
the obligatory payment in at least the last six months.
30% of the total of affiliates for each of the administrators of the Pay As You Go Regime in January
2008, without including “CAJANAL” and “FONPRECON”, belongs to people who quote, representing
1,822,273; and 70% belongs to people who do not quote, representing 4,253,790. It is noteworthy to
clarify that people who do not quote are those affiliates and not-pensioners, who for some reason did not
do the mandatory payment during the reported month (graph 40).
31
1,819,225
10,000,000
GRAPH 40
AFFILIATES CLASIFICATION
4,252,620
1,000,000
100,000
1,815
10,000
1,000
1,000
823
236
111
233
100
10
1
ISS
CAPRECOM
P. ANTIOQUIA
QUOTING MEMBERS
CAXDAC
NON-QUOTING MEMBERS
LAST YEAR QUOTING AND NON QUOTING AFFILIATES' EVOLUTION
100%
90%
80%
70%
60%
68%
50%
40%
30%
20%
10%
0%
32%
Jan-07
67%
68%
33%
32%
Feb-07
69%
31%
Mar-07
Apr-07
68%
69%
69%
69%
32%
31%
31%
31%
May-07
Jun-07
Jul-07
Aug-07
NON-QUOTING MEMBERS
69%
31%
Sep-07
70%
69%
70%
70%
30%
31%
30%
30%
Oct-07
Nov-07
Dec-07
Jan-08
QUOTING MEMBERS
Source: Supervised Entities
4.3 PENSIONERS
The number of pensioners that were reported by each administrator in January 2008 was 1,003,274,
which represents an increase of 3,650 pensioners in comparison to December 2007, representing 0,37%
(graph 41). 739,513 of this total belong to Old Age Pension, 39,147 to Invalidity and 224,614 to Survival
(chart 7). Regarding the number of pensioners by gender, 588,680 are men and 414,594 are women
(graph 42).
According to the article 33 of the Law 100/93, which was modified by the article 9° of Law 797 of 2003, in
the Pay As You Go Regime, the age of the retirement for the men is 60 years and they must have 1.125
weeks of contribution at the desired retirement time, whereas for the women, their mandatory age of the
retirement is 55 years but the time of contribution continues being equal, meaning 1.125 weeks for them,
as well.
74.75%
22.51%
1,000,000
2.25%
687
0.07%
689
0.21%
2,075
2,260
22,639
225,804
2,251
10
0.23%
225,201
100
749,911
1,000
746,772
10,000
2,072
100,000
22,537
10,000,000
GRAPH 41
PENSIONERS
1
ISS
CAJANAL
CAPRECOM (1)
Dec-07
Jan-08
P. ANTIOQUIA
FONPRECON (2)
CAXDAC
Participation to January 2008
(1) 22.537 of the pensioners in “CAPRECOM” in month 31 January 2008: 13.539 are pensioners prior to the entrance in use of the
Law 100/93; 8.849 are pensioners in use of Law 100/93, concurs the Organization, “FONCAP” and others; 149 in the Advance
Plan of Pensions (PAP),under an employer’s responsibility. (Numbers in evaluation)
(2) 2.075 of the pensioners reported by “FONPRECON”, 807 are under the Law 4th of 1992 (Ex-members of the “Congreso de la
República”) and 1.268 are under the Law 100 of 1993 (Administrative Personal of the “Congreso de la República” and of the
“Fondo de Previsión Social”). (Figures in verification)
32
GRAPH 42
NUMBER OF PENSIONERS BY THE GENDER
414,594
144,484
70%
1,101
80%
10,726
90%
890
257,264
129
100%
60%
CAPRECOM
P.ANTIOQUIA
588,680
FONPRECON
20%
81,320
1,159
30%
11,811
40%
1,185
492,647
558
50%
10%
0%
IS S
CAXDAC
MEN
CAJANAL
TOTAL
WOMEN
LAST YEAR PENSIONERS' EVOLUTION
0.58%
0.40%
0.56% 0.55%
0.57%
0.53% 0.67% 0.74%
0.60%
0.60% 0.37%
1,003,274
0.40% 0.50%
1,000,000
979,825
Aug-07
Sep-07
999,624
974,632
Jul-07
993,687
968,808
Jun-07
986,431
963,362
200,000
952,761
943,470
938,753
400,000
948,979
600,000
958,077
800,000
Nov-07
Dec-07
0
Jan-07
Feb-07
Mar-07
Apr-07
May-07
TOTAL PENSIONERS
Oct-07
Jan-08
VARIATION
"ISS" PENSIONERS' EVOLUTION LAST FIVE YEARS,
BY THE GENDER
800,000
200,000
749,911
693,723
492,647
257,264
206,147
232,146
636,066
429,919
591,824
185,170
300,000
406,654
545,993
400,000
165,509
500,000
380,484
PENSIONERS
600,000
461,577
700,000
100,000
Jan-04
Jan-05
Jan-06
MEN
WOMEN
Jan-07
Jan-08
TOTAL
Source: Supervised Entities
According to the administrator’s report, the monthly salary value of pensioners for January 2008, was
USD 516,174.6 thousand dollars (graph 43). USD$445,533.7 thousand of this total belong to Old Age
Pension, USD$17,233.5 thousand to Invalidity and USD$53,407.4 to Survival (chart 7).
33
1,000,000.0
28.80%
4.67%
1,810.0
1,434.2
3,167.1
7,171.5
13,009.5
24,079.7
21,767.4
1,280.1
10.0
0.28%
0.35%
134,692.5
100.0
333,004.9
10,000.0
1,000.0
1.39%
148,674.3
100,000.0
316,487.8
Thousand Dollars
GRAPH 43
PENSION PAYMENTS
64.51%
1.0
ISS
CAJANAL
CAPRECOM (1)
Dec-07
FONPRECON (2)
Jan-08
CAXDAC
P. ANTIOQUIA
Participation to January 2008
(1) In January 2008 "CAPRECOM" reported USD 24.079,7 thousand dollars as it follows:
(a) USD 12.628,8 thousand dollars – It’s the value of the participation of the organization in which the pensioners were affiliated,
the participation that is in charge of the communications sector and the participation that does not belong to the sector, by
pensions recognized before the Law 100 of 1993 came into force, in comparison to the payments that were not made;
(b) USD 11.280,7 thousand dollars – It’s the value of the organization’s participation in which the pensioners were affiliated, the
participation that is in charge of the communications sector, the participation in charge of the FONCAP and the participation
that does not belong to the sector, by pensions recognized after the Law 100 of 1993 came into force, in comparison to the
payments that were made;
(c) USD 170,1 thousand dollars – It’s the value of the pension that according to the Advance Plans of Pensions (PAP) is totally
paid by the employer, until the affiliate fulfills the general requirements established in the current norms which determine that
the employer continues quoting to the FONCAP. (Numbers in evaluation)
(2) USD 7.171,5 thousand dollars reported by “FONPRECON” are distributed as it follows: USD 5.824,9 thousand dollars belong to
the pensioners covered under the Law 4th of 1992 (Ex-members of the “Congreso de la República”) and USD 1.346,6 thousand
dollars belong to the pensioners covered under the Law 100 of 1993 (Administrative Personal of the “Congreso de la República”
and of the “Fondo de Previsión Social”). (Figures in verification)
57.49%
700,000
480,476.3
Feb-07
Mar-07
Apr-07
May-07
Jul-07
3.27%
Sep-07
Oct-07
-36.12%
Nov/07
(**)
Dec-07
5.25%
516,174.6
436,002.1
100,000
421,253.7
200,000
410,030.7
300,000
8.40%
490,404.3
Jun/07
(**)
400,000
-9.01%
767,637.1
-37.04%
487,412.5
10.20%
760.065,1|
3.50%
435,387.1
-2.52%
6.28% 2.74%
478,523.5
500,000
760,065.1
600,000
385,801.5
Thousand of dollars
LAST YEAR EVOLUTION OF THE PENSION PAYMENTS
58.19%
0
Jan-07
Aug-07
Pension Pay Value
Jan-08
Monthly variation
Source: Supervised Entities
** They include the additional monthly pay
The arithmetic average for this Regime’s payment of the pension in January 2008 was USD 514.5
dollars, value superior in 4.87% compared to last month’s pension payment (graph 44).
GRAPH 44
AVERAGE PENSION PAYMENTS
0.0
FONPRECON
CAXDAC
CAPRECOM
P. ANTIOQUIA
Dec-07
CAJANAL
Jan-08
ISS
514.5
490.6
444.1
423.8
658.4
598.1
634.6
568.7
1,000.0
1,068.5
2,000.0
961.5
3,000.0
2,634.7
4,596.7
4,000.0
3,456.1
Dollars
5,000.0
6,278.7
6,000.0
SYSTEM´S
AVERAGE
34
LAST YEAR EVOLUTION OF THE AVERAGE PENSION PAYMENTS
57.32%
56.34%
-36.49% 4.87%
772.5
Sep-07
Oct-07
514.5
2.58%
7.83%
490.6
May-07
446.7
Apr-07
493.9
501.5
Mar-07
-9.56%
494.1
-37.40%
481.7
9.59%
3.09%
789.0
2.14%
Feb-07
411.0
250
5.75%
457.6
-2.90%
443.9
500
434.6
Dollars
750
0
Jan-07
Jun/07
(**)
Jul-07
SYSTEM´S AVERAGE
Aug-07
Nov-07
(**)
Dec-07
Jan-08
MONTHLY VARIATION
Source: Supervised Entities
** They include the additional monthly pay
4.4 INVESTMENT PORTFOLIO
The balances of the pensional reserve funds’ investment portfolios in February 2008 (having in mind
what is established in Law 490/1998 and in the statutory Decree 1404/1999 (July 28 th 1999), “CAJANAL”
transferred its reserves to “FOPEP” and therefore does not present a balance; and in the case of the
“Instituto de Seguros Sociales” – “ISS” – the resources which are part of the Subsidiary Regime) are
included, representing a value of USD 1,232.0 million dollars compared to USD 1,174.8 million dollars in
January 2008, showing a increase of USD 57.2 million dollars which is equal to 4.87% (graph 45). The
total of investments in February of 2008 is distributed for each pensional modality as follows: Retirement
age USD 1,143.3 million dollars, Invalidity USD 13.3 million dollars and Survival USD 75.4 million dollars
(chart 8).
GRAPH 45
INVESTMENT PORTFOLIO
42.67%
1,000
33.27%
6.11%
75.2
68.2
40.0
42.1
169.3
409.9
394.8
525.7
10
3.42%
179.1
100
502.7
Million dollars
14.54%
1
ISS
CAPRECOM
Jan-08
CAXDAC
Feb-08
P.ANTIOQUIA
FONPRECON
Participation to February 2008
LAST YEAR INVESTMENT PORTFOLIOS´ EVOLUTION
Oct-07
Nov-07
1,232.0
Jul-07
4.87%
1,174.8
Jun-07
3.83%
1,131.6
Apr-07
1,072.2
Mar-07
3.04% -2.67% 5.54%
1,101.6
200
945.5
400
904.5
600
1,078.7
800
-8.39%
7.65%
Dec-07
Jan-08
Feb-08
1,069.0
4.53%
1,084.0
3.22%
1,071.2
0.18%
876.3
Millionf Dollars
1,000
993.0
14.09% -0.69% 1.19%
1,200
0
Feb-07
May-07
PORTFOLIO VALUE
Aug-07
Sep-07
MONTHLY VARIATION
Source: Supervised Entities
In February 2008, 91,8% of the portfolios were invested in TES, the remaining 8,2% were represented in
other bonds different to Nation bonds contained in the funds administrated by “CAXDAC”.
35
“CAXDAC”’s investment portfolio is different to other pay as you go reserve funds, due to the fact that
this entity, in investment matters, is ruled by the norms issued by the Financial Superintendency for
Private Pension Fund Administrators and its classification is the following one:
The investments’ portfolio value of Retirement age’s reserves, Invalidity and Survival of CAXDAC on the
29th day of February 2008 was USD 179,1 million dollars, increasing the value registered in 5,8% at the
end of the previous month, date in which it was USD 169,3 million dollars.
At the end the month of February 2008, 78,77% of the above mentioned reserves, that is, USD 141,067
thousand dollars belong to investments in fixed income; 13,78%, USD 24,680 thousand dollars belong to
changeable income investments; 6,06%, USD 10,852 thousand dollars to deposits at sight; and 1,40%,
USD 2,499 thousand dollars, to net position in derivatives (rights minus obligations) (graph 46).
GRAFICO 46
CAXDAC - PORTFOLIO CLASIFICATION IN: FIXED AND VARIABLE INCOME, DEPOSITS AT SIGHT AND
DERIVATIVES NET POSITION
AS OF FEBRUARY 29, 2008 - US THOUSAND DOLLARS
100%
INVESTMENTS IN
FIXED INCOME
CHANGEABLE
INCOME
INVESTMENTS
77.46%
DEPOSITS AT
SIGHT
99.85%
78.77%
99.61%
NET POSITION IN
DERIVATIVES
13.78%
14.63%
0%
0.08%
0.07% 0.08%
INVALIDITY
USD$5,244
0.31% 1.48%
SURVIVAL
USD$5,246
6.42%
OLDNESS
USD$168,169
6.06%
1.40%
TOTAL
USD$179,099
SOURCE: Caxdac
In February 2008, the most significant investments were represented in 28,03% of the portfolio’s total
value by securities issued by institutions supervised by other regulatory authorities; then come the
securities issued by the nation (internal national debt) with a representation of 26.20%; securities issued
by entities supervised by the Financial Superintendency of Colombia with 14,35%; External public debt
with 10,00%; other investments had a participation of 7,45%; securities issued by territorial organizations
and decentralized entities had a participation of 7,34%, and securities issued by external entities with
6,62% (graph 47).
36
GRAPH 47
CAXDAC - PORTFOLIO CLASSIFICATION IN TYPE OF ISSUER
AS OF FEBRUARY 28, 2008 - US THOUSAND DOLLARS
100%
INSTITUTIONS
SUPERVISED BY
OTHER REGULATORY
AUTHORITIES
19.54%
21.07%
28.51%
28.03%
26.17%
26.20%
13.12%
14.35%
10.62%
10.00%
7.91%
7.45%
7.32%
7.34%
6.35%
6.62%
NATION - INTERNAL
PUBLIC DEBT
ENTITIES SUPERVISED
BY THE FINANCIAL
SUPERINTENDENCY
OF COLOMBIA
24.98%
28.27%
NATION -EXTERNAL
PUBLIC DEBT
OTHER INVESTMENTS
(1)
TERRITORIAL
ORGANIZATIONS AND
DECENTRALIZED
ENTITIES
34.58%
33.74%
TITLES EMITTED BY
EXTERNAL ENTITIES
0.00%
0.07%
0.31%
0.00%
7.11%
8.21%
12.18%
9.93%
0%
INVALIDITY
USD$5.244
SURVIVAL
USD$5.246
OLDNESS
USD$168.609
TOTAL
USD$179,099
SOURCE: Caxdac
(1) Overnight deposits and net position in derivatives (rights minus obligations)
5. ISS´s PROFFESIONAL RISKS ADMINISTRATOR
5.1 RESERVES FOR PROFESSIONAL RISKS
With the Law 776 of 2002 coming into force, in the 1° article, and according to the instruction of External
Circular 044 of the Financial Superintendency, the “Instituto de Seguros Sociales” (“ISS”) adopted the
technical reserves regime for the life insurance companies that administrate the professional risks sector;
and as a result, during the last semester, the “ISS” presents in its financial statements the amount of
each of the following reserves: (Graph 48).
33.6
23.4
102.9
32.1
1,440.0
1,632.0
31.6
22.0
101.9
30.2
1,351.9
1,537.6
30.3
21.0
96.6
29.0
1,308.9
1,485.8
29.2
20.4
94.0
27.9
1,294.7
1,466.2
29.8
97.7
28.6
20.2
20.8
1,503.5
1,326.5
1,290.1
28.0
100.0
29.2
1,000.0
94.3
Million dollars
10,000.0
1,461.9
GRAPH 48 - PROFESSIONAL RISKS RESERVES
10.0
1.0
Sep-07
TOTAL RESERVES
4-NOT WARNED SINISTER
Oct-07
Nov-07
1-MATHEMATICAL RESERVE
5-PROFESSIONAL ILLNESS
Dec-07
2-DEVIATION OF SINISTER
Jan-08
Feb-08
3-WARNED SINISTER
SOURCE: ARP-ISS/ FINANCIAL STATEMENTS IN VERIFYING PROCESS
5.2 EMPLOYERS AND AFFILIATE EMPLOYEES
The affiliated Employers with the ISS´s professional risk insurance company (ARP) during last year
(between January 2007 and January 2008) they report an increase on 3.31%, being on 293,073 to
January 2007, passing to 302,770, in the above mentioned period. The affiliated workers during the
same period increased on 6.07%, begin on 1,610,226 to January 2007 and finish in 1,708,021 at the
same period. For the months of December 2007 and January 2008, the affiliated employers’ decreases
was -21, which is equal to -0.01% and the affiliated workers decrease in -10,822, which is equal to 0.63% (graph 49). The ARP´s amounts who quote in January 2008 were USD 10.4 million dollars.
37
Graph 49
EMPLOYEES AND WORKERS AFFILIATED
1,708,021
Nov-07
302,770
Oct-07
1,718,843
Sep-07
302,791
301,009
1,718,175
Jul-07
297,997
1,683,855
Jun-07
297,718
1,679,640
May-07
1,678,129
Apr-07
296,626
Mar-07
296,508
1,677,271
294,025
1,634,008
500,000
294,008
1,633,168
700,000
1,616,281
293,073
900,000
294,153
1,100,000
1,610,226
1,300,000
294,050
1,613,728
1,500,000
295,004
1,667,270
1,700,000
Dec-07
Jan-08
300,000
100,000
-100,000
Jan-07
Feb-07
EMPLOYERS
Aug-07
WORKERS
SOURCE: ARP-ISS
5.3 PENSIONERS
In January 2008, 10,987 from the total of the 23,009 pensioners who presented by the ISS´s ARP belong
to survival pension and 12,022 to invalidity pension. During the last year, the number of pensioners for
survival displayed an increase of 2.10%, regarding invalidity a decrease of -0.22% and taking into
account the total of pensioners an increase of 0.87%. For the months of December 2007 and January
2008 the data of pensioners regarding survival, invalidity and the total system displayed an increase of
43, 25 and 68 people respectively, which represents 0.39%, 0.21% and 0.30% (graph 50). The monthly
salary value of ARP’s pensioners in January 2007 was USD 6.6 million dollars, and USD 3.4 million
dollars of this total belong to survival and USD 3.2 million dollars to invalidity.
GRAPH 50
PENSIONERS
11,034
12,092
10,944
11,997
23,009
10,987
12,022
22,941
23,126
23,119
11,015
12,104
23,034
22,974
23,006
10,964
Jun-07
12,070
May-07
12,073
10,869
12,056
Apr-07
10,933
10,840
12,048
Mar-07
10,901
12,073
10,845
12,063
22,925
22,888
22,878
10,818
12,060
22,842
10,791
12,051
22,810
12,049
10,761
10,000
22,908
20,000
Oct-07
Nov-07
Dec-07
0
Jan-07
Feb-07
SURVIVAL
Jul-07
INVALIDITY
Aug-07
Sep-07
Jan-08
TOTAL
SOURCE: ARP-ISS
5.4 MANDATORY QUOTATIONS AND PENSION PAYMENTS
Between the months of February 2007 and February 2008, ISS´s ARP received USD 128.9 million
dollars in quotations from affiliated employers, for a monthly average of USD 9,9 million dollars. The
amount paid during the same period on pension payments was USD 88.5 million dollars, for a monthly
average of USD 5,9 million dollars, taking into account that the law establishes 14 annual pension
payments. Financial statements and statistical reports are being evaluated and are also in depuration
process in order to be adjusted according to the instructions of External Circular 044/2003 (graph 51).
Nov-07
(**)
MONTHLY TOTAL PENSION PAY
11.5
10.4
Dec-07
7.0
Oct-07
6.6
Sep-07
5.6
Aug-07
12.5
10.1
11.2
10.0
Jul-07
MANDATORY QUOTATIONS
SOURCE: ARP-ISS
** They include the additional monthly payment
10.0
9.3
6.1
Jun/07
(**)
5.9
May-07
5.6
6.3
Apr-07
6.3
5.6
Mar-07
12.3
11.6
5.4
Feb-07
7.9
9.9
9.3
8.0
7.6
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
5.3
Million Dollars
GRAPH 51 - MANDATORY QUOTATIONS AND PENSION PAYS
Jan-08
Feb-08