PRESS NOTICE
Bogotá, January 16th, 2007
PERFORMANCE OF MANDATORY PENSION FUNDS, VOLUNTARY PENSION FUNDS,
UNEMPLOYMENT FUNDS, PAY AS YOU GO REGIME AND ADMINISTRATOR OF
PROFESSIONAL RISKS OF THE ISS, NOVEMBER 2007
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 12.56% annual effective,
which equals to a real return of 7.26% and is higher than the demanded minimum return in 3.65
percent. Individually, the funds reached returns that go from 11.61% to 14.01% (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
N O V .3 0 t h/ 0 4 T O N O V .3 0 t h/ 0 7
16.00%
14.01%
14.00%
12.43%
12.35%
12.05%
12.00%
12.56%
11.95%
11.61%
8.91%
10.00%
8.00%
AVERAGE
(*)
MINIMUN
3.78%
RETURN
7.26%
6.35%
HORIZONTE
COLFONDOS
6.68%
6.77%
SANTANDER
SKANDIA
PORVENIR
0.00%
PROTECCION
2.00%
7.06%
7.14%
4.00%
8.64%
6.00%
NOM INA L RETURN
REA L RETURN
(*) Weighed by the equity’s daily average balance
GRAPH 2
EVOLUTION OF THE MANADATORY PENSIONS FUNDS´ ACCUMULATED RETURNS
19.00%
18.50%
18.00%
17.50%
17.00%
16.50%
16.00%
15.50%
15.00%
14.50%
14.00%
13.50%
13.00%
12.50%
12.00%
11.50%
11.00%
11-06
12-06
01-07
PROTECCION
02-07
03-07
PORVENIR
04-07
05-07
HORIZONTE
06-07
07-07
SANTANDER
08-07
09-07
COLFONDOS
10-07
SKANDIA
1
During the last five years, mandatory pension funds obtained an average return of 13.73%, which
equals to a real return of 7.95%, whereas the average return from the beginning of operations on
November the 31st, 2007 was 16.28% annual effective, which is equal, in real terms, to 5.25%
(graph 3).
GRAPH 3.
16.28%
16.04%
5.03%
COLFONDOS
5.25%
16.04%
5.03%
SANTANDER
15.55%
15.55%
4.59%
SKANDIA
4.59%
15.71%
4.73%
13.73%
4.00%
PORVENIR
6.69%
6.00%
7.95%
12.65%
6.93%
HORIZONTE
12.83%
7.10%
SANTANDER
13.36%
7.60%
13.75%
13.32%
COLFONDOS
8.00%
7.97%
10.00%
SKANDIA
12.00%
9.78%
14.00%
7.56%
16.00%
PORVENIR
18.00%
15.66%
20.00%
17.87%
R E T UR N F R O M T H E B E G IN N IN G
O F O P E R A T IO N S ( 1) N O V .3 0 t h/ 0 7
LA S T F IV E Y E A R S R E T UR N
N O V .3 0 t h/ 0 2 T O N O V .3 0 t h/ 0 7
2.00%
NOM INA L RETURN
AVERAGE (*)
HORIZONTE
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
Monthly Average Return (annual effective)
The monthly average return of Mandatory Pension Funds during the last thirty-six months was
between 12.45% and 15,36% (annual effective rate), with an annualized volatility of 5,53% and
7,15%, respectively. The return and volatility of each one of those funds are shown in graph 4.
GRAPH 4
MANDATORY PENSION FUNDS
MONTHLY AVERAGE RETURN AND VOLATILITY
NOVEMBER 30th 2004 -NOVEMBER 30th 2007
16.00%
Protección
15.50%
15.00%
14.50%
Skandia
14.00%
Porvenir
13.50%
Colfondos
Santander
13.00%
12.50%
Horizonte
12.00%
11.50%
11.00%
PORTFOLIO
OF REFERENCE
10.50%
10.00%
4.50%
5.00%
5.50%
6.00%
6.50%
7.00%
VOLATILITY
2
1.2.2 VOLATILITY AND ACCUMULATED RETURN
The accumulated average return of Mandatory Pension Funds during the last thirty-six months, was
between 9.77% and 14.01% (annual effective rate), with annualized volatilities of 2,08% and 2,97%,
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 on November 30th, 2007 the amount of USD 24.507
millions, USD 29 millions less than the value registered on October 31st, in other words, 0.1%.
Regarding the same month in 2006, the funds have had an increase of 34.1%, which is equal to
6,232 US million dollars (graph 6 and 7, Chart 1.1).
GR A P H 6.
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
N O V .3 0 T H 2 0 0 7 - US M ILLIO N D O LLA R S
7,000
26.9%
24.9%
6,000
5,000
14.5%
FUND VA LUE
36
0.1%
SKANDIA
PLAN
ALTERNATIVO
1,055
4.3%
2,973
SANTANDER
SKANDIA
3,558
HORIZONTE
PROTECCION
0
PORVENIR
1,000
COLFONDOS
2,000
12.1%
4,183
6,104
3,000
17.1%
6,598
4,000
P ERCENTA GE OF P A RTICIP A TION
3
24,507
0.1%-
24,536
3.9%
2.2%
1.2%-
8.4%
23,610
21,775
11.9%
23,287
23,572
21,070
8.5%-
5,000
5.2%
5.9%
10,000
20,029
19,378
0.9%
Feb-07
15,000
3.4%
19,205
0.7%-
20,000
Jan-07
19,347
18,276
25,000
1.8%
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
FUNDS VALUE
Nov-07
Oct-07
Sep-07
Jul-07
Jul-07
Jun-07
May-07
Apr-07
Mar-07
Dec-06
Nov-06
-
MONTHLY VARIATION
1.4 AFFILIATES
The number of affiliates with the individual savings with solidarity regime on the 30th day of
November 2007, was 7.784.275, with an increase of 0.9%, that is, 69.847 more individuals affiliated
than the ones reported on October 31st 2007. Regarding the same month in 2006, the funds have
had an increase of 11.8%, which is equal to 822.845 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
N O V .3 0 T H 2 0 0 7
29.2%
2,400,000
2,100,000
21.6%
1,800,000
SKANDIA
352
0.0%
7,784,275
7,714,428
7,487,857
7,406,882
7,344,705
7,258,846
7,197,578
7,121,325
7,074,020
7,010,287
7,200,000
6,961,430
7,800,000
7,582,676
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
8,100,000
7,500,000
SKANDIA PLAN
ALTERNATIVO
65,927
0.8%
1,079,538
SANTANDER
COLFONDOS
HORIZONTE
P ERCENTA GE OF P A RTICIP A TION
7,653,566
A FFILIA TES
PROTECCION
PORVENIR
300,000
0
13.9%
1,216,605
600,000
1,468,083
900,000
15.6%
1,678,779
1,200,000
2,274,991
18.9%
1,500,000
1.1%
1.3%
0.9%
0.8%
0.9%
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
1.2%
May-07
0.8%
0.9%
0.7%
Feb-07
Apr-07
0.9%
Jan-07
1.1%
0.7%
Dec-06
Mar-07
0.8%
6,600,000
Nov-06
6,900,000
AFFILIATES
Jun-07
6,300,000
MONTHLY VARIATION
4
11.80%
AFFILIATES' EVOLUTION IN THE LAST FIVE YEARS
8,000,000
10.30%
7,000,000
10.20%
10.70%
6,000,000
10.40%
5,000,000
4,000,000
3,000,000
7,784,275
3,227,381
4,556,894
6,961,430
2,828,280
4,133,150
6,312,164
% VARATION
TOTAL
MEN
WOMEN
Nov-07
Nov-06
Nov-05
Nov-04
Nov-03
2,577,512
3,734,652
5,700,421
2,338,357
5,172,514
2,121,066
0
3,051,448
1,000,000
3,362,064
2,000,000
54.9% of the mandatory pension funds’ total members are active, in other words, 4.276.218; and
45.1%, which equals to 3.508.057 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
N O V .3 0 T H 2 0 0 7
1,400,000
1,200,000
A CTIVE
62
SKANDIA PLAN
ALTERNATIVO
290
21,784
44,143
SKANDIA
SANTANDER
547,920
531,618
614,580
COLFONDOS
602,025
720,392
HORIZONTE
PORVENIR
-
PROTECCION
200,000
747,691
1,031,825
400,000
646,954
600,000
956,365
800,000
1,318,626
1,000,000
INA CTIVE
54.8%
54.9%
45.2%
45.1%
Nov-07
54.2%
45.8%
Sep-07
Oct-07
53.9%
53.6%
46.4%
Jul-07
46.1%
53.6%
46.4%
Jun-07
Aug-07
53.3%
46.7%
May-07
52.3%
47.7%
Mar-07
52.7%
52.1%
47.9%
Feb-07
51.9%
48.1%
Jan-07
51.9%
48.1%
Dec-06
52.0%
48.0%
54.0%
Nov-06
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%
48.0%
46.0%
47.3%
50.0%
44.0%
ACTIVE
Apr-07
42.0%
INACTIVE
5
54.6% of the Individual Savings Regime’s total members belongs to non-quoting members, which is
equal to 4.249.388 people; and 45.4%, that is 3.534.887 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 N O V .3 0 T H
2007
1,400,000
1,200,000
1,000,000
QUOTING
SKANDIA
123
229
SKANDIA PLAN
ALTERNATIVO
27,420
38,507
685,059
394,479
SANTANDER
664,098
552,507
911,279
556,804
COLFONDOS
-
HORIZONTE
837,511
841,268
200,000
PROTECCION
400,000
1,123,898
1,151,093
600,000
PORVENIR
800,000
NON-QUOTING
56.8%
56.3%
56.7%
56.5%
56.2%
56.0%
55.1%
54.6%
43.2%
43.7%
43.3%
43.5%
43.8%
44.0%
44.9%
45.4%
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
57.5%
42.5%
Feb-07
57.7%
58.5%
41.5%
Jan-07
42.3%
58.0%
42.0%
Dec-06
Mar-07
58.4%
60.0%
41.6%
65.0%
Nov-06
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%
25.0%
NON-QUOTING
QUOTING
83.2% of the total number of the people affiliated with the mandatory pension funds, earn an income
of less than two minimum wages, 10.8% earn an income between two and four minimum wages
and 6% 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.
95.4% of the affiliated people with the system correspond to workers under contract and 4.6% to
independent workers.
When talking about the origin of the affiliates, it is important to say that 59.3% belongs to the people
who are affiliated to the system, 28.5% come from the Instituto de Seguros Sociales” (“ISS”),
11.7% from transfers between AFPs and 0.5% come from the Government social security funds
(Chart 1.2).
1.5 PENSIONERS
On November 30th 2007, the Individual Savings with Solidarity Regime has 25.712 pensioners,
15.184 for survival, 5.773 for invalidity and 4.755 for old age retirement (graph 11).
6
52.2% of the pensioners, that is 13.416, have chosen the modality of programmed retirement
pension; 47.8%, 12.295 pensioners, the immediate life rent and 1 pensioner elected the
programmed retirement with deferred life rent (Chart 1.3).
SURVIVAL
INVALIDITY
SKANDIA P.A
SKANDIA
17
287
205
120
45
958
571
SANTANDER
HORIZONTE
PORVENIR
PROTECCION
0
602
1,000
500
2,343
2,454
3,444
457
2,000
1,500
COLFONDOS
1,360
2,500
1,098
688
1,710
3,500
3,000
2,530
3,098
4,000
3,724
G R A P H 11
P E N S IO N E R S B Y F UN D
N O V .3 0 T H 2 0 0 7
RETIREMENT AGE
25,712
25,403
25,057
24,738
24,373
23,970
23,592
23,181
22,915
22,302
25,000
21,944
21,598
30,000
22,531
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
1.2%
1.4%
1.3%
1.7%
Jul-07
1.5%
1.6%
Jun-07
1.8%
1.2%
1.7%
1.0%
1.6%
Jan-07
10,000
1.6%
1.2%
15,000
Dec-06
20,000
5,000
PENSIONERS
Nov-07
Oct-07
Sep-07
Aug-07
May-07
Apr-07
Mar-07
Feb-07
Nov-06
-
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
25,712
25,000
21,944
18,503
20,000
15,942
Nov-05
17.2%
Nov-04
18.6%
16.1%
5,000
16.1%
10,000
13,728
21.9%
15,000
Nov-06
Nov-07
Nov-03
PENSIONERS
VARIATION
7
1.6 INVESTMENT PORTFOLIO
On November 30th 2007, the Mandatory Pension Funds portfolio’s value reached USD$ 24,459
thousand millions, showing an increase of 2.4% in comparison to the end of the previous month,
when it was USD$ 24,352 thousand millions.
At the end of November 2007, 70% of the above mentioned funds’ portfolio, that is USD$17,245
million belongs to fixed income investments; 26.3%, USD$ 6,439 million, to investments in equity;
3.7%, USD$ 899 million, to overnight deposits and 0.7%, USD$ 775 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 - NOV 30th 2007 US THOUSAND DOLLARS
100%
Fixed income
69.0%
Changeable
Income
68.9%
68.7%
73.5%
62.2%
67.9%
70.0%
71.0%
Overnight Deposits
25.0%
26.5%
Derivatives
0%
0.4%
4.1%
B B VA
HORIZONTE
4,138,071
29.5%
30.1%
1.6% 0.4%
0.8%
COLFONDOS
3,654,236
SA NTA NDER
2,949,131
26.3%
22.9%
2.5%
1.1%
P ORVENIR
6,563,680
2.8%
0.1%
P ROTECCION
6,061,813
12.8%
0.7%
5.8%
26.3%
25.5%
SKA NDIA P ENSIONA R
1,039,731
3.2%
0.5%
SKA NDIA P LA N
A LTERNA TIVO
36,332
SYSTEM
24,458,955
FIXED INCOME, EQUITY, OVERNIGHT DEPOSITS AND DERIVATIVES NET
POSITION TOTAL PORTFOLIO'S LAST YEAR EVOLUTION - US MILLION
DOLLARS
100%
80%
60%
40%
20%
0%
NOV-06
18,190
DIC-06
19,284
Derivatives
JA N-07
19,147
FEB -07
19,346
M A R-07 A P R-07
19,975
21,032
Overnight Deposits
M ay-07
23,551
Jun-07
23,259
Jul-07
23,790
A UG-07
21,768
Changeable Income
Sep-07
23,423
Oct-07
24,352
No v-07
24,459
Fixed income
Investment in public debt continues being the most significant one of these funds. On November
30th 2007, these investments represented 44.5% of the portfolio’s total value (national debt
represents the 40.7%, external national debt 1.5% and territorial organizations and decentralized
entities 2.2%), followed by the securities issued by institutions supervised by other regulatory
authorities with 19.5%, securities issued by the Institutions supervised by the Financial
8
Superintendency which had a participation of 16.8% and
participation a 13.6% (Graph 13).
the external investments with a
GRAPH 13
PORTFOLIO'S CLASIFICATION : BY ISSUER
NOV 30th 2007 - US THOUSAND DOLLARS
100%
Internal Public Debt
22.0%
Institutions watched by other
regulatory authority
40.1%
37.9%
38.8%
33.4%
42.5%
40.7%
43.1%
Institutions supervised by the
Financial Superintendency
12.4%
External Investment
18.4%
Overnight Deposits
14.2%
22.8%
13.4%
21.7%
20.4%
19.5%
19.6%
Domestic debt securities issued
under Law 80/93 and Decree 2681/93
22.7%
19.4%
External Public Debt
14.6%
Securities issued, guaranteed by
Fogafin (Financial Insitution
Guarantee Fund)
37.5%
15.7%
16.1%
16.9%
Others (1)
4.1%
0%
1.4%
3.8%
0.8%
1.6%
3.1% 2.5%
0.2%
1.6%
0.9%
2.8% 0.4%
2.3%
0.7%
1.4%
BBVA
HORIZONTE
4,138,071
17.9%
14.8%
8.1%
16.8%
14.1%
14.8%
2.3%
15.0%
COLFONDOS
3,654,236
SANTANDER
2,949,131
1.6%
1.3%
1.4%
1.4% 2.4%
PORVENIR
6,563,680
13.6%
5.8%
0.7%
3.5%
1.4%
4.1%
0.4% 2.9%
PROTECCION
6,061,813
0.2%
SKANDIA PENSIONAR
1,039,731
3.2%
2.2%
12.8%
1.5%
1.4%
1.9% 1.1%
SKANDIA PLAN
ALTERNATIVO
36,332
SYSTEM
24,458,955
(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%
NOV-06
18,190
DIC-06
19,284
JA N-07
19,147
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
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 73.6% of the portfolio mentioned before is denominated in Colombian pesos, 13.7% in UVR,
11% in US Dollar, 1.3% in euros and the remaining 0.4% in British Pound, Real and Yen. (Graph
14).
9
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
N OV 30th 2007 - US T H OUSA N D D OLLA R S
100%
Col Peso
59.7%
UVR
72.1%
74.9%
69.2%
70.8%
73.6%
77.1%
77.8%
US Dollar
10.2%
Euro
16.1%
13.6%
13.6%
15.5%
6.7%
Others (1)
12.9%
0%
0.0%
8.4%
1.4% 0.5%
BBVA
HORIZONTE
4,138,071
COLFONDOS
3,654,236
11.0%
SANTANDER
2,949,131
11.0%
7.2%
0.1% 0.0%
PORVENIR
6,563,680
28.1%
12.1%
14.6%
2.1%
2.4%
2.6%
13.7%
14.3%
1.6%
1.4%
PROTECCION
6,061,813
2.0% 0.4%
SKANDIA PENSIONAR
1,039,731
SKANDIA - PLAN
ALTERNATIVO
36,332
1.3%
SYSTEM
24,458,955
(1) Others: British Pound, Real, Euro and Yen
TOTAL PORTFOLIO'S LAST YEAR EVOLUTION BY CURRENCY
US MILLION DOLLARS
78%
68%
58%
48%
38%
28%
18%
8%
-2%
NOV-06
18,190
Others
DIC-06
19,284
JAN-07
19,147
FEB-07
19,346
Euro
MAR-07
19,975
APR-07
21,032
UVR
May-07
23,551
Jun-07
23,259
Jul-07
23,790
US Dollar
AUG-07
21,768
Sep-07
23,423
Oct-07
24,352
Nov-07
24,459
Col Peso
Regarding the foreign currency position, it is observed that 53.4% is covered from the exchange
rate fluctuation risk. The uncovered part represents the 5.9% of the funds’ total value (Graph 15 and
Chart 4).
10
GRAPH 15
MANDATORY PENSION FUNDS
PERCENTAGE'S LAST YEAR EVOLUTION WITHOUT COVERAGE (MAXIMUM LIMIT 30%)
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
7.1%
6.6%
6.2%
5.8%
5.5%
5.3%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Nov-06
Dic-06
Ene-07
Feb-07
Mar-07
Abr-07
May-07
Jun-07
Jul-07
Ago-07
Sep-07
Oct-07
PROTECCION
PORVENIR
HORIZONTE
SANTANDER
SKANDIA
COLFONDOS
Nov-07
On the other hand, 29% of the portfolio is invested in fixed income securities issued in Colombian
pesos, 17.8% of the portfolio is invested in stocks, 16% is linked to CPI issues, 13.7% is invested in
fixed income linked to UVR, 8.5% in Shares (Derived from securitization processes, Mutual Funds,
Unit trust funds and Index Fund), 6.7% is linked to the DTF, 4.3% is invested in fixed income
denominated in US Dollar, 3.2% in Overnight Deposits and the rest (0.9%) are securities linked to
fixed income in Real from Brazil, CPI middle income, Libor, British Pound and net position in
derivatives. (Graph 16 and Chart 1.5).
G R A P H 16
P O R T F O LIO 'S C LA S IF IC A T IO N : F LA T R A T E B Y C UR R E N C Y , C H A N G E A B LE IN C O M E , O V E R N IG H T D E P O S IT S - N O V 3 0 t h
2 0 0 7 - US T H O US A N D D O LLA R S
100%
Flat Rate - Col Peso
28.4%
27.4%
28.9%
31.7%
24.7%
21.3%
29.0%
29.8%
STOCKS
11.1%
IPC
16.2%
17.9%
15.8%
15.5%
13.5%
19.6%
13.9%
16.1%
13.6%
13.6%
Flat Rate - US Dollar
10.6%
Others (1)
0%
0.5%
4.1%
7.3%
B B VA
HORIZONTE
4,138,071
0.8%
5.8%
6.0%
3.1% 0.8%
3.2%
1.6%
2.1% 0.5%
COLFONDOS
3,654,236
SA NTA NDER
2,949,131
8.5%
8.5%
5.0%
7.1%
6.6%
13.7%
1.9%
9.8%
9.2%
9.3%
4.3%
15.6%
14.3%
6.7%
10.3%
Overnight Deposits
10.2%
16.0%
17.4%
DTF
17.8%
12.0%
21.3%
19.5%
Flat Rate - UVR
Shares
17.1%
13.7%
20.2%
2.5%
P ORVENIR
6,563,680
6.5%
5.3%
3.1%
7.0%
5.7%
0.7%
3.2%
0.8%
P ROTECCION
6,061,813
SKA NDIA P ENSIONA R
1,039,731
12.8%
6.7%
4.2%
7.0%
0.9%
SKA NDIA - P LA N
A LTERNA TIVO
36,332
3.2%
SYSTEM
24,458,955
(1) Real from Brazil, Libor, British
11
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%
NOV-06 DIC-06 JAN-07 FEB-07 MAR-07 APR-07 May-07 Jun-07 Jul-07
18,190 19,284 19,147 19,346 19,975 21,032 23,551 23,259 23,790
OTHERS
IPC
SHARES
AUG-07 Sep-07 Oct-07
21,768 23,423 24,352
FIXED INCOME COL PESO
FIXED INCOME US DOLLAR
STOCKS
Nov-07
24,459
FIXED INCOME UVR
DTF
Regarding the classification of the portfolio by credit risk, it is remarkable that 45.7% are securities
issued by the Nation, 26.6% are investments that do not require qualification, 20% are investments
with AAA qualification, 3.6% with AA+, and the rest (4.1%) belongs to securities with AA, AA-, A+,
A, A-, 1+, BBB+, BBB, BBB-, B and securities issued by Fogafin (Graph17)
GRAPH 17
PORTFOLIO'S CLASIFICATION: BY CREDIT RISK
NOV 30th 2007
100%
25.2%
NATION
47.8%
45.7%
45.2%
39.0%
39.1%
51.7%
45.7%
15.4%
N/A
4.7%
AAA
28.7%
27.3%
31.0%
37.8%
11.4%
33.2%
26.6%
40.2%
AA+
8.8%
OTHERS (1)
0%
14.2%
19.4%
5.2%
4.1%
3.5%
4.1%
PROTECCION
PORVENIR
17.6%
16.6%
1.8%
4.4%
2.7%
3.9%
32.3%
17.4%
HORIZONTE
20.0%
5.0%
SANTANDER SKANDIA - P.A
11.0%
SKANDIA
2.4%
2.2%
COLFONDOS
3.6%
4.1%
SYSTEM
(1)
AA, AA-, A+, A, A-, 1+, BBB+, BBB, BBB-, B and securities issued by Fogafin
Note (1): In order to establish the percentages, one has to take into account the portfolio’s total value, not including the
derivatives net position.
Finally, it is worth to point out that 1.7% of the fixed income portfolio has a remaining maturity of 180
days, 1.4% between 181 and 360 days, 6.9% between 361 and 720 days, 15.9% between 721 and
1080 days, 11.2% between 1081 and 1440 days, 10.6% between 1441 and 1800 days, 2.7%
between 1801 and 2160 days, 24.6% between 2161 and 2880 days, 9.1% between 2881 and 3600
days and 15.9% has a maturity superior to 10 years (Graph 18 and Chart 1.6).
12
GRAPH 18
FIXED RATE PORTFOLIO BY REMAINING MATURITY DAYS
NOV 30th 2007
100%
9.1%
12.6%
9.1 > 3600
14.2%
19.8%
23.6%
6.3%
7.9%
10.0%
9. 2881 - 3600
39.3%
32.7%
16.1%
2.3%
5. 1081 - 1440
9.6%
16.6%
3.3%
C 6.9%
14.2%
10.8%
7.6%
8.4%
3. 361 - 720
1. 0 - 180
0%
1.6%
5.6%
1.3%
0.9%
2.0%
PROTECCION
PORVENIR
2.5%
2.7%
8.7%
10.6%
11.7%
11.2%
15.3%
15.9%
9.6%
6.9%
11.6%
9.1%
14.2%
4.2%
16.6%
8.1%
19.1%
20.3%
24.6%
8.1%
4.9%
10.6%
2. 181 - 360
25.1%
17.3%
4.0%
4. 721 - 1080
9.1%
15.2%
8.5%
2.0%
2.5%
9.3%
18.2%
29.2%
7. 1801 - 2160
6. 1441 - 1800
15.9%
14.3%
9.4%
8. 2161 - 2880
15.9%
1.3%
10.2%
7.2%
2.0%
2.0%
3.3%
HORIZONTE
SANTANDER
12.2%
10.4%
6.0%
8.4%
4.4% 0.4%
SKANDIA PENSIONAR
2.1% 0.6%
SKANDIA PLAN
ALTERNATIVO
1.4%
1.3% 1.7%
COLFONDOS
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, on November 30th 2007 reached the value of USD 3.328
millions, 1.8% less than the value registered on October 31st 2007. (Graph 19).
1,100
GRAPH 19
VALUE OF EACH FUND AND ITS PARTICIPATION WITHIN THE SYSTEM
NOV.30th 2007 - US MILLION DOLLARS
1,056
1,000
900
804
800
700
31.7%
569
600
500
24.2%
400
300
17.1%
246
175
200
161
86
68
68
7.4%
100
5.3%
4.8%
2.6%
2.0%
2.0%
36
31
1.1%
0.9%
15
10
0.5%
0.3%
2
0.1%
2
0.0%
FUND VALUE
PERCENTAGE OF PARTICIPATION
FIDUCOR
FIDUPENSIONES
FIDUCOR
MULTIPENSIONES
FIDUPOPULAR PLAN
FUTURO MULTIOPCION
FIDUPOPULAR PLAN
FUTURO
PROTECCION SMURFIT
FIDUALIANZA ABIERTO
VISION
FIDUCOLOMBIA
RENTAPENSION
COLSEGUROS
SANTANDER
HORIZONTE
COLFONDOS CLASS
FIDUDAVIVIENDA
DAFUTURO
PORVENIR
PROTECCION
SKANDIA MULTIFUND
0
3,328
3,388
3,308
3,110
3,400
3,412
3,499
3,269
3,151
3,135
3,223
0.3%
Dec-06
3,153
3,214
3,000
8.5%-
1.8%-
2.4%
6.4%
0.3%-
3.7%
2.5%-
1,000
0.5%
1,500
0.6%-
2,000
7.0%
2,500
2.2%-
US MILLION DOLLARS
3,500
0.2%
4,000
Nov-06
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
Nov-07
Oct-07
Sep-07
Aug-07
Jul-07
Jun-07
May-07
Apr-07
Mar-07
Feb-07
Jan-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 on November 30th 2007 was 495.130, showing an
increase of 1.756 members, compared to the number reported on the final day of the previous month
(graph 20).
GRAPH 20
AFFILIATES AND PARTICIPATION OF EACH FUND WITHIN THE SYSTEM
NOV.30th 2007
100,000
92,094
90,000
80,000
18.6%
89,502
18.1%
76,577
70,000
15.5%
60,000
56,355
50,000
11.4%
49,114
9.9%
40,000
46,271
9.3%
45,608
9.2%
10,000
11,407
2.3%
4,802
3,023
1.0%
0.6%
1,468
976
0.3%
0.2%
AFFILIATES
FIDUPOPULAR PLAN
FUTURO MULTIOPCION
PROTECCION SMURFIT
FIDUALIANZA ABIERTO
VISION
FIDUPOPULAR PLAN
FUTURO
COLSEGUROS
SANTANDER
HORIZONTE
FIDUCOLOMBIA
RENTAPENSION
SKANDIA MULTIFUND
COLFONDOS CLASS
PORVENIR
FIDUDAVIVIENDA
DAFUTURO
PROTECCION
0
156
0.0%
133
0.0%
FIDUCOR
MULTIPENSIONES
17,644
3.6%
20,000
FIDUCOR
FIDUPENSIONES
30,000
PERCENTAGE OF PARTICIPATION
14
495,130
A F F ILIA T E S LA S T Y E A R E V O LUT IO N
492,521
496,000
0.5%
Nov-07
0.4%
Sep-07
0.5%
0.4%
Aug-07
490,050
488,304
0.1%
Jul-07
486,511
485,896
0.1%
Jun-07
0.5%Apr-07
0.2%-
0.0%
Mar-07
May-07
0.1%Feb-07
0.1%
482,000
0.5%
0.4%
484,000
Oct-07
486,000
485,434
489,045
486,449
488,000
489,219
486,926
490,000
489,263
492,000
489,900
494,000
Jan-07
Dec-06
Nov-06
480,000
A FFILIA TES
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
486,926
500,000
450,000
495,130
449,047
403,396
400,000
365,868
9.3%-
200,000
150,000
100,000
1.7%
250,000
8.4%
300,000
22.7%
20.1%
350,000
50,000
0
Nov-03
AFFILIATES
Nov-04
Nov-05
Nov-06
Nov-07
VARIATION
48.1% of the affiliates earn an income of less than two minimum wages, 9.3% have an income between
two and four minimum wages and 42.6% earn more than four minimum wages.
66.6% of the affiliated people are between 30 and 54 years old, where, 51% are men and 49% women.
71% of the affiliates with the system belongs to workers under contract and 29% to independent workers.
2.3 INVESTMENT PORTFOLIO
On November 30th 2007, 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$
3,340 million, showing an decrease of 1.1% compared to the end of the previous month, when it was
USD$ 3,378 million.
At the end of November 2007, 57.4% of these funds’ portfolios, USD$1,918 million belong to fixed
income investments; 20.6%, USD$ 687 million to investments in equity, 20.4%, $683 million dollars to
overnight deposits and 1.6%, $51 million dollars to net position in derivatives. (Graph 21 and Chart 2.1).
15
GRAPH 21
PORTFOLIO DIVERSIFICATION: FIXED INCOME, CHANGEABLE INCOME, OVERNIGHT DEPOSITS AND DERIVATIVES - NOV 30th
2007 - US THOUSAND DOLLARS
20.4%
1.2%
20.6%
57.4%
0.4%
SYSTEM
0.1%
0.8%
35.2%
3,340
63.9%
COLSEGUROS 68,366
40.3%
26.7%
33.0%
FIDUCOR - M ULTIP ENSIONES 2,104
39.5%
60.5%
FIDUCOR - FIDUP ENSIONES 1,644
0.1%2.1% 2.3%
95.5%
FIDUCOLOM B IA - RENTA P ENSION 67,952
7.0%
21.4%
71.6%
FIDUCIA RIA DA VIVIENDA - DA FUTURO 243,141
5.8%
39.8%
54.4%
FIDUCIA R - M ULTIOP CION 9,565
11.0%
89.0%
FIDUCIA R - P LA N FUTURO 15,359
15.3%
11.9%
72.8%
A LIA NZA - A B IERTO VISION 35,072
3.6%
20.6%
8.6%
67.2%
SKA NDIA - M ULTIFUND 1,059,153
32.0%
18.4%
49.6%
P ROTECCION - ESM URfIT 30,775
28.2%
1.4%
45.6%
24.8%
P ROTECCION 804,924
22.5%
0.2%
34.4%
42.9%
P ORVENIR 572,965
5.3%
16.0%
78.7%
SA NTA NDER 86,382
18.5%
-0.1%
40.1%
41.5%
COLFONDOS 180,645
7.6%
67.5%
24.8%
B B VA HORIZONTE 161,533
0.1%
-0.2%
99.8%
Active Report Operations
Derivatives
Changeable Income
Overnight Deposits
Fixed income
The securities issued by Institutions supervised by the Financial Superintendency are the most
significant investments of these funds. On November 30th 2007, these investments represented 31.9%,
followed by the overnight deposits with 20.6%, Debt public investment with 13.4% (national debt
represents 11.2%, external national debt 0.9% and territorial organizations and decentralized entities
2.2%), the external investments represent 17.9%, and issues by institutions supervised by other
regulatory authorities have a participation of 13.3% (Graph 22 and Chart 2.1).
GRAPH 22
PORTFOLIO'S CLASIFICATION : BY ISSUER
NOV 30th 2007 - US THOUSAND DOLLARS
1.2%
11.2%
2.2%
13.3%
17.9%
31.9%
20.6%
1.7%
SYSTEM
15.0%
0.1%
3.1%
3.4%
18.2%
27.6%
7.1%
11.9%
15.8%
3,340
38.1%
0.8%
COLSEGUROS 68,366
40.4%
10.0%
8.5%
FIDUCOR - M ULTIP ENSIONES 2,104
15.2%
60.5%
24.3%
FIDUCOR - FIDUP ENSIONES 1,644
0.1% 1.2%
22.6%
2.6%
5.6%
6.7% 2.3%
58.9%
FIDUCOLOM B IA - RENTA P ENSION 67,952
7.6%
3.6%
3.0%
19.0%
45.4%
21.4%
FIDUCIA RIA DA VIVIENDA - DA FUTURO 243,141
6.0%
2.9%
5.2%
8.0%
39.8%
38.1%
FIDUCIA R - M ULTIOP CION 9,565
2.9%1.6%
1.7%
79.9%
11.0%
2.9%
FIDUCIA R - P LA N FUTURO 15,359
6.9%
7.7%
15.1%
A LIA NZA - A B IERTO VISION 35,072
1.7%
3.6%
5.6%
1.6%
31.9%
10.7%
14.7%
26.3%
P ROTECCION 804,924
0.2%
2.0%
0.3%
11.3%
16.5%
34.4%
16.4%
20.7%
P ORVENIR 572,965
24.7%
4.9%
3.9%
0.9%
P ROTECCION - ESM URfIT 30,775
24.8%
13.4%
1.8%
22.0%
18.4%
4.4%
30.3%
17.1%
1.9%
36.3%
8.6%
SKA NDIA - M ULTIFUND 1,059,153
23.3%
1.6%
2.5%
16.1%
8.7%
13.3%
9.5%
16.0%
27.7%
SA NTA NDER 86,382
41.5%
11.4%
19.0%
COLFONDOS 180,645
-0.1%
3.8%
57.6%
11.9%
0.8%
0.1% 2.7%
15.8%
4.4% 3.8%
24.8%
44.6%
B B VA HORIZONTE 161,533
-2%
98%
Others (1)
Domestic debt securities issued under Law 80/93 and Decree 2681/93
Institutions watched by other regulatory authority
Derivatives
Internal Public Debt
Overnight Deposits
Overnight Deposits
Institutions supervised by the Financial Superintendency
(1) FOGAFIN AND DERIVATIVES NET POSITION
16
83% of the above mentioned portfolio is denominated in Colombian pesos, 13% in US Dollars, 2.5% in
UVR, 1.2% in Euros and the remaining 0.3% in British pound, Real from Brazil, Yen, and Canadian
Dollar (Graph 23).
GRAPH 23
PORTFOLIO'S CLASIFICATION: BY CURRERNCY
NOV 30th 2007 - US THOUSAND DOLLARS
13.0%
0.3%2.5%
83.0%
SYSTEM 3,340
1.2%
91.7%
8.3%
COLSEGUROS 68,366
100.0%
FIDUCOR - MULTIPENSIONES 2,104
100.0%
FIDUCOR - FIDUPENSIONES 1,644
4.2%
8.4%
87.4%
FIDUCOLOMBIA - RENTAPENSION 67,952
94.9%
2.6% 2.4%
FIDUCIARIA DAVIVIENDA - DAFUTURO 243,141
3.1%
91.7%
5.2%
FIDUCIAR - MULTIOPCION 9,565
98.1%
1.9%
FIDUCIAR - PLAN FUTURO 15,359
99.2%
0.8%
ALIANZA - ABIERTO VISION 35,072
1.0%
76.4%
21.7%
SKANDIA - MULTIFUND 1,059,153
0.1%
91.3%
4.8% 3.9%
2.6% 5.1%
PROTECCION - ESMURfIT 30,775
81.9%
9.5%
PROTECCION 804,924
0.9%
1.9%
82.2%
14.6%
PORVENIR 572,965
1.3%
0.1% 3.0% 4.9%
91.7%
0.3%
SANTANDER 86,382
88.1%
3.6% 6.7%
1.6%
COLFONDOS 180,645
93.5%
0.9% 4.5%
BBVA HORIZONTE 161,533
1.1%
0%
100%
Others (1)
Euro
UVR
US Dollar
Col Peso
(1) British Pound, Real, Yen and Canadian Dollar
Concerning to foreign currency position, it is observed that 30.4% is covered from the exchange rate
fluctuation risk. The uncovered part represents 10.2% of the funds’ total value (Chart 4).
On the one hand, 24.2% of the portfolio is invested in fixed income securities denominated in Colombian
pesos, 20.6% in overnight deposits, 10% is linked to CPI, 11.8% is linked to the DTF, 10.3% in Shares
(Derived from securitization processes, Mutual Funds, unit trust funds, and Indexed Funds), 10.2% of
the portfolio is invested in stocks, 3.7% is invested in fixed income denominated in US Dollar, 2.5% in
fixed income investments linked to UVR, and the rest (3.8%) are fixed income securities denominated in
Euro, and net position in derivatives.(Graph 24 and Chart 2.2).
17
GRAPH 24
PORTFOLIO'S CLASIFICATION: FLAT RATE BY CURRENCY, CHANGEABLE INCOME, OVERNIGHT DEPOSITS - NOV 30th 2007 US THOUSAND DOLLARS
2.6% 2.8% 3.7%
10.0%
10.2%
20.6%
11.8%
10.3%
24.2%
3.8%
SYSTEM
10.0%
7.7%
8.7%
26.5%
3.6% 0.8%
3,340
42.7%
COLSEGUROS 68,366
4.5%
15.8%
10.7%
17.7%
10.8%
40.4%
FIDUCOR - M ULTIP ENSIONES 2,104
39.5%
60.5%
FIDUCOR - FIDUP ENSIONES 1,644
4.2%
17.1%
7.7%
45.4%
0.7% 1.4%
2.3%
21.2%
FIDUCOLOM B IA - RENTA P ENSION 67,952
29.2%
2.6%
20.4%
3.7%3.3%
21.4%
19.4%
FIDUCIA RIA DA VIVIENDA - DA FUTURO 243,141
15.3%
3.0%
5.8%
12.8%
39.8%
23.3%
FIDUCIA R - M ULTIOP CION 9,565
2.9%
1.9%
9.2%
11.0%
37.1%
37.9%
FIDUCIA R - P LA N FUTURO 15,359
0.8%
13.9%
29.3%
38.1%
1.4%
11.9%
4.6%
A LIA NZA - A B IERTO VISION 35,072
1.0%
9.9%
8.8%
2.1%
8.2%
8.0%
8.8%
12.6%
32.0%
8.6%
SKA NDIA - M ULTIFUND 1,059,153
4.8%
17.8%
2.4%
1.7% 2.3%
30.3%
18.4%
22.3%
P ROTECCION - ESM URfIT 30,775
5.1% 1.7% 5.8%
14.2%
14.3%
13.8%
18.8%
24.8%
1.5%
P ROTECCION 804,924
1.9%
12.9%
5.7%
13.5%
9.0%
3.9%
34.4%
17.3%
1.4%
P ORVENIR 572,965
3.0% 2.5%
1.9% 3.4%
29.5%
17.4%
16.0%
25.9%
0.4%
SA NTA NDER 86,382
3.6% 0.9% 7.0%
8.4%
8.4%
10.1%
20.1%
41.5%
COLFONDOS 180,645
1.3% 0.9%
1.0%
2.9% 4.7%
12.7%
17.1%
34.6%
24.8%
B B VA HORIZONTE 161,533
-1%
99%
Others (1)
Flat Rate - UVR
Libor
Flat Rate - US Dollar
IPC
STOCKS
Shares
DTF
Overnight Deposits
Flat Rate - Col Peso
´(1) Securitization, Mutual Funds, Index Funds and Unit Trust Funds
´(2) Libor, Fixed income Euros, Canadian Dollar, CPI middle income and Derivatives Net Position
On the other hand, 32.4% of the fixed income securities’ portfolio has a remaining maturity of 180 days,
9.4% between 181 and 360 days, 14.6% between 361 and 720 days, 11.7% between 721 and 1080
days, 10.8% between 1081 and 1440 days, 7.7% between 1441 and 1800 days, 2% between 1801 and
2160 days, 4.5% between 2161 and 2880 days, 3.7% between 2881 and 3600 days and 3.2% has a
remaining maturity superior to 10 years (Graph 25 and Chart 2.3).
GRAPH 25
FIXED RATE PORTFOLIO BY REMAINING MATURITY DAYS
NOV 30th 2007
32.1%
14.5%
9.8%
11.8%
7.7%
10.8%
2.0% 4.5% 3.7% 3.2%
SYSTEM
6.4%
9.2%
40.1%
19.4%
11.3%
1.2%
12.4%
COLSEGUROS
53.8%
13.7%
32.5%
FIDUCOR - M ULTIPENSIONES
100.0%
FIDUCOR - FIDUPENSIONES
8.8%
27.6%
31.2%
7.4%
3.6% 0.7% 2.0%0.7%0.7%
17.3%
FIDUCOLOM BIA - RENTAPENSION
38.3%
5.0%
24.3%
10.5%
15.2%
5.7%
1.0%
FIDUCIARIA DAVIVIENDA - DAFUTURO
50.6%
14.3%
10.4%
11.0%
9.3%
FIDUCIAR - M ULTIOPCION
64.0%
11.8%
20.3%
2.1%1.8%
FIDUCIAR - PLAN FUTURO
27.7%
19.1%
31.8%
8.8%
17.1%
13.8%
3.3%
13.1%
14.9%
5.8%
9.9%
15.5%
2.6% 2.1%
0.1% 0.9%
ALIANZA - ABIERTO VISION
7.2%
6.3%
SKANDIA - M ULTIFUND
1.6% 3.7%
11.2%
34.1%
13.9%
21.9%
11.8%
1.8%
PROTECCION - ESM URfIT
25.3%
18.4%
12.4%
4.2%
23.3%
2.0%2.6%
10.2%
1.2% 0.4%
PROTECCION
46.6%
4.8%
5.8%
13.1%
4.8%
11.7%
1.7%
8.0%
1.8%1.7%
PORVENIR
9.8%
17.0%
13.0%
14.9%
18.0%
3.3% 4.0% 3.6%
9.2%
7.2%
SANTANDER
17.4%
17.9%
21.4%
5.5% 0.4% 7.2%
12.9%
3.2%2.3%
COLFONDOS
32.4%
4.5%
24.5%
11.6%
13.0%
6.8% 1.3% 1.0% 2.6%2.3%
BBVA HORIZONTE
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
18
3. UNEMPLOYMENT FUNDS
3.1 RETURN
Between November 30th 2005 and November 30th 2007, the funds had an average return of 2.78%
annual effective, which equals to a real return of -1.99%. It is noteworthy to emphasize that these returns
oscillated between 1.72% and 4.82% (graph 26).
G R Á F IC O 2 6 .
F UN D S ' R E T UR N N O V .3 0 t h/ 0 5 T O N O V .3 0 t h/ 0 7
4.82%
2.66%
2.78%
2.21%
2.53%-
2.11%-
1.49%-
-2.00%
0.05%-
0.00%
1.16%-
2.00%
1.72%
NOM INA L RETURN
PROMEDIO (*)
HORIZONTE
COLFONDOS
PROTECCION
SKANDIA
SANTANDER
-6.00%
PORVENIR
-4.00%
0.28%-
MINIMUM
4.91%RETURN
3.31%
1.99%-
3.65%
4.00%
3.00%-
6.00%
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 -0.28% annual effective. In average, the funds had a higher return in 3.06 percentage points.
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
2,26% and 5,42% (annual effective), with annualized volatilities of 4,10% and 5.98 % respectively. The
return and volatility for each one of those funds are shown in graph 27.
MONTHLY AVERAGE RETURN AND VOLATILITY
GRAPH 27
UNEMPLOYMENT FUNDS
MONTHLY AVERAGE RETURN AND VOLATILITY
NOVEMBER 30th 2005 -NOVEMBER 30th 2007
7.00%
6.50%
6.00%
Skandia
5.50%
Santander
5.00%
4.50%
Porvenir
4.00%
Protección
3.50%
Colfondos
3.00%
Horizonte
2.50%
2.00%
1.50%
PORTFOLIO
OF REFERENCE
1.00%
4.00%
4.50%
5.00%
5.50%
6.00%
VOLATILITY
19
3.2.2 ACCUMULATED RETURN AND VOLATILITY
The accumulated average return of the unemployment funds during the last twenty-four months, was
between the 2.30% and 5,08% (annual effective), with annualized volatility of 4,80% and 3.85%,
respectively. The average return and volatility for each one of those funds are shown in graph 28.
(*)
ACCUMULATED AVERAGE RETURN
GRAPH 28
UNEMPLOYMENT FUNDS
ACCUMULATED AVERAGE RETURN AND VOLATILITY
NOVEMBER 30th 2005 -NOVEMBER 30th 2007
5.80%
5.50%
5.20%
4.90%
4.60%
4.30%
4.00%
3.70%
3.40%
3.10%
2.80%
2.50%
2.20%
1.90%
1.60%
1.30%
1.00%
0.70%
0.40%
0.10%
-0.20%
-0.50%
-0.80%
3.10%
Skandia
Porvenir
Santander
Protección
Colfondos
Horizonte
PORTFOLIO
OF REFERENCE
3.20%
3.30%
3.40%
3.50%
3.60%
3.70%
3.80%
3.90%
4.00%
4.10%
4.20%
4.30%
4.40%
4.50%
4.60%
4.70%
4.80%
4.90%
5.00%
VOLATILITY
(*) It belongs to the accumulated return of the last 24 months
EVOLUTION OF THE UNEMPLOYMENT FUNDS' ACCUMULATED RETURNS
11.50%
RENTABILIDAD ACUMULADA
9.50%
7.50%
5.50%
3.50%
1.50%
Nov-06
Dic-06
Ene-07
PROTECCION
Feb-07
Mar-07
PORVENIR
Abr-07
May-07
HORIZONTE
Jun-07
Jul-07
SANTANDER
Ago-07
Sep-07
COLFONDOS
Oct-07
Nov-07
SKANDIA
20
3.3 VALUE OF THE FUNDS
On November 30th, the funds reached the value of $1.887 millions (graphs 29 and 30), 3.9% less than
the value registered on October 31st, that is, $77 millions. Taking into account the same month in 2006,
the funds have had an increase of 15.5%, in other words, $253 millions.
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 - N O V .3 0 T H 2 0 0 7 - US M ILLIO N D O LLA R S
30.5%
600
23.7%
500
19.5%
FUND VA LUE
COLFONDOS 217
SANTANDER 239
HORIZONTE
PORVENIR
PROTECCION
100
0
11.5%
368
200
39
2.1%
12.7%
447
300
SKANDIA
576
400
P ERCENTA GE OF P A RTICIP A TION
1,964
0.0%
3.9%-
Oct-07
Nov-07
1,887
1,964
4.1%
Sep-07
1,886
2,151
2.9%Jul-07
12.3%-
2,216
6.0%-
2,358
2,211
Jun-07
3.8%-
1,000
6.7%
1,645
1.5%-
1,500
0.3%
1,670
2.3%
Dec-06
39.3%
1,633
1.5%-
2,000
Nov-06
2,500
2,204
2,291
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
500
FUNDS VALUE
Aug-07
May-07
Apr-07
Mar-07
Feb-07
Jan-07
0
MONTHLY VARIATION
3.4 AFFILIATES
The number of people affiliated with the funds on November 30th 2007 was 4.037.387, with a decrease of
1%, that is, 40.658 less people compared to the ones that were with the funds on October 31st 2007.
(Graph 31). Taking into account the same month in 2006, the funds have had an increase of 8%, in other
words, 296.046 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 - N O V .3 0 T H 2 0 0 7
1,400,000
29.6%
1,200,000
21.9%
525,899
COLFONDOS
29,791
0.7%
559,137
200,000
13.1%
SANTANDER
833,081
400,000
13.9%
PROTECCION
600,000
20.7%
878,668
1,190,522
800,000
HORIZONTE
1,000,000
A FFILIA TES
SKANDIA
PORVENIR
0
P ERCENTA GE OF P A RTICIP A TION
21
4,017,098
4,037,387
4,078,045
4,129,922
4,196,664
4,264,601
4,341,806
4,427,219
4,507,429
4,578,911
3,703,398
4,100,000
3,710,477
4,900,000
3,721,053
A F F ILIA T E S
LA S T Y E A R E V O LUT IO N
1.0%Oct-07
0.5%-
1.3%-
1.6%Jul-07
Sep-07
1.8%Jun-07
1.6%-
1.9%May-07
Aug-07
1.8%Apr-07
0.2%Jan-07
1.6%-
0.3%Dec-06
23.6%
0.6%-
1,700,000
Nov-06
2,500,000
Mar-07
3,300,000
900,000
A FFILIA TES
Nov-07
Feb-07
100,000
M ONTHLY VA RIA TION
AFFILIATES' EVOLUTION IN THE LAST FIVE YEARS
4,500,000
8.00%
12.00%
4,000,000
3,500,000
9.80%
3.30%
8.50%
3,000,000
2,500,000
2,000,000
Nov-03
MEN
Nov-04
WOMEN
Nov-05
TOTAL
Nov-06
4,017,098
1,407,850
2,609,248
3,721,053
1,358,092
2,362,961
3,322,041
1,223,581
2,098,460
3,024,545
1,127,880
1,896,665
0
2,926,854
500,000
987,446
1,000,000
1,939,408
1,500,000
Nov-07
% VARATION
95.9% of the total members are dependent workers, 2.6% are voluntary members and 1.5% are
independent workers. On the other hand, 65% of the funds’ members are men and 35% women (Chart
3.2).
3.5 INVESTMENT PORTFOLIO
On November 30th 2007, the portfolio’s value of the unemployment funds was USD$ 1,896 million,
showing a decrease of 3.6% regarding what it was presented at the end of the previous month, when it
had a value of USD$ 1,968 million.
At the end of November 2007, 78.8% of the above mentioned funds’ portfolio, that is, USD$ 1,495 million
belongs to fixed income investments; 18.1%, USD$ 342 million to investments in equity, 2.8%, USD$ 53
million to overnight deposits and 0.3%, 5 million to net position in derivatives (right less obligations)
(Chart 3.3 and Graph31)
22
GRAPH 31
PORTFOLIO DIVERSIFICATION: FIXED INCOME, CHANGEABLE INCOME, OVERNIGHT DEPOSITS AND DERIVATIVES - NOV
30th 2007 - US THOUSAND DOLLARS
100%
Fixed income
Changeable
Income
79.2%
80.4%
77.2%
77.7%
20.3%
19.2%
80.0%
78.8%
79.7%
Overnight
Deposits
Derivatives
17.9%
Active Report
Operations
18.8%
15.8%
11.4%
18.0%
4.7%
0.8%
0%
2.1%
BBVA
HORIZONTE
370,291
-0.1%
0.9%
COLFONDOS
450,161
0.1%
2.0%
0.4%
SANTANDER
240,579
4.2%
3.1%
PORVENIR
577,466
PROTECCION
448,458
4.2%
SKANDIA
38,999
0.3%
2.8%
0.1%
SYSTEM
1,896,124
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%
No v-06
1,638
Dic-06
1,682
JA N-07
1,646
Derivatives
Feb-07
2,305
M ar-07
2,222
A P R-07
2,221
Overnight Deposits
M ay-07
2,387
Jun-07
2,243
Jul-07
2,160
A UG-07
1,903
Changeable Income
Sep-07
1,985
Oct-07
1,968
No v-07
1,896
Fixed income
The investments in public debt are the most important ones within these funds. On November 30th 2007,
this investments represented 51.1% of the portfolio’s total value (national debt represents 43.5%,
external national debt 1.9% and territorial organizations and their decentralized 5.6%), followed by the
securities issued by the institutions supervised by the Financial Superintendency with18.4%, the
Institutions supervised by other regulatory authorities with 16.9%, and external investments with 9.9%
and overnight deposits with 2.8% (Graph 32)
23
Internal Govermment Debt
99.0%
GRAPH 32
PORTFOLIO'S CLASIFICATION : BY ISSUER
NOV 30th 2007 - US THOUSAND DOLLARS
100.0%
Institutions watched by other
regulatory authority
Internal Public Debt
27.9%
Institutions supervised by the
Financial
Superintendency
Institutions
watched
by the
Financial Supervision
41.1%
43.8%
43.3%
41.9%
43.6%
49.1%
Institutions watched by other
regulatory authority
20.5%
External Public Debt
External Investment
Domestic debt securities
Other public debt
issued under Law 80/93 and
Decree 2681/93
17.5%
24.1%
14.6%
20.4%
18.4%
titles
11.5%
13.5%
13.0%
17.2%
Overnight Deposits
15.4%
International Investment
18.1%
13.8%
16.9%
18.8%
7.0%
External Public Debt
13.4%
10.6%
Overnigth
Others
(1)
Deposits
5.3%
2.1%
1.6%
0.0%
Others (1)
8.0%
1.4%
0.9%
-1.0%
BBVA
HORIZONTE
370,291
1.0%
14.0%
4.7%
7.1%
2.0%
1.8% 3.2%
$ 421,068
5.6%
4.2%
1.6%
6.8%
0.7%
COLFONDOS
SANTANDER
PORVENIR
PROTECCION
450,161
240,579
577,466 PORVENIR
448,458
COLFONDOS
HORIZONTE
$ 252,113
8.6%
6.0%
3.9%
3.1%
0.3%
9.9%
6.1%
9.1%
SKANDIA
38,999
PROTECCION
$ 662,463
$ 516,388
2.8%
1.9%
0.9%
SYSTEM
1,896,124
SANTANDER
$ 264,935
(1) FOGAFIN AND DERIVATIVES NET POSITION
TOTAL PORTFOLIO'S LAST YEAR EVOLUTION BY ISUUER
US MILLION DOLLARS
60%
50%
40%
30%
20%
10%
0%
Nov-06 Dic-06 JAN-07 Feb-07 Mar-07 APR-07 May-07 Jun-07 Jul-07 AUG-07 Sep-07 Oct-07 Nov-07
1,638 1,682 1,646 2,305 2,222
2,221 2,387
2,243 2,160
1,903 1,985 1,968 1,896
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
74.3% of the above mentioned portfolio is denominated in Colombian pesos, 15.2% in UVR, 8.8% in US
Dollar, 1.5% in euros, 0.2% in Real from Brazil, and the rest in yen (Graph 33)
24
SKANDIA
$ 43,288
GRAPH 33
PORTFOLIO'S CLASIFICATION: BY CURRERNCY
NOV 30th 2007 - US THOUSAND DOLLARS
100%
Col Peso
64.3%
UVR
71.2%
73.8%
77.5%
74.2%
74.4%
78.1%
US Dollar
Euro
18.5%
16.4%
16.5%
12.6%
Others (1)
1.4%
0%
BBVA
HORIZONTE
370,291
COLFONDOS
450,161
16.3%
10.1%
7.7%
8.3%
9.9%
15.2%
17.3%
10.3%
8.8%
6.3%
1.4%
2.4%
SANTANDER
240,579
2.3%
PORVENIR
577,466
0.4%
1.6%
PROTECCION
448,458
0.9%
SKANDIA 38,999
1.5%
0.3%
SYSTEM
1,896,124
(1) Yen
TOTAL PORTFOLIO'S LAST YEAR EVOLUTION BY CURRENCY
US MILLION DOLLARS
80%
70%
60%
50%
40%
30%
20%
10%
0%
No v-06
1,638
Dic-06
1,682
JA N-07
1,646
EURO
Feb-07
2,305
M ar-07
2,222
UVR
A P R-07
2,221
M ay-07
2,387
Jun-07
2,243
US DOLLAR
Jul-07
2,160
A UG-07
1,903
Sep-07
1,985
Oct-07
1,968
No v-07
1,896
COL PESO
In terms of the foreign currency position, it is observed that 53.4% is covered from the exchange rate
fluctuation risk and the uncovered part represents 4.9% of the funds’ total value (Graph 34 and Chart 4)
25
GRAPH 34
UNEMPLOYMENT FUNDS
PERCENTAGE'S LAST YEAR EVOLUTION WITHOUT COVERAGE (MAXIMUM LIMIT 30%)
11.0%
10.0%
9.0%
8.0%
7.4%
7.0%
6.0%
6.0%
5.0%
4.5%
4.0%
3.8%
3.5%
3.0%
2.0%
1.0%
0.8%
0.0%
Nov-06
Dic-06
Ene-07
Feb-07
Mar-07
PROTECCION
SANTANDER
Abr-07
May-07
Jun-07
Jul-07
PORVENIR
SKANDIA
Ago-07
Sep-07
Oct-07
Nov-07
HORIZONTE
COLFONDOS
On the other hand, 30.3% of the portfolio is invested in fixed income issues denominated in Colombian
pesos, 23.2% is linked to CPI, 15.2% is invested in fixed income linked to UVR, 8% in Shares (Derived
from securitization processes, Mutual Funds, unit trust funds, and Indexed Funds), 10% of the portfolio is
invested in stocks, 7.3% linked to DTF, 2.8% in Overnight deposits, 1.7% in fixed income denominated in
US Dollar, 0.7% are fixed income issues denominated in Euros, and the remaining 0.8% are securities
denominated in Real from Brazil, Libor, and net position in derivatives. (Graph 35 and Chart 3.4)
GRAPH 35
PORTFOLIO'S CLASIFICATION: FLAT RATE BY CURRENCY, CHANGEABLE INCOME, OVERNIGHT DEPOSITS - NOV
30th 2007 - US THOUSAND DOLLARS
100.00%
Flat Rate - Col Peso
20.4%
IPC
28.2%
27.3%
30.0%
34.3%
30.3%
34.6%
Flat Rate - UVR
14.6%
Shares
24.5%
23.4%
23.7%
25.2%
DTF
16.5%
10.3%
Overnight Deposits
17.4%
9.4%
10.7%
11.4%
8.0%
8.9%
10.0%
9.0%
8.5%
15.2%
3.5%
11.0%
10.5%
Flat Rate - US Dollar
Others (1)
7.9%
16.4%
12.6%
8.7%
4.7%
1.4%
8.0%
6.7%
12.4%
0.00%
1.8%
2.1%
0.5%
BBVA HORIZONTE
370,291
0.9%
1.0%
1.4%
COLFONDOS
450,161
6.1%
5.3%
7.8%
(1)
(2)
23.2%
18.5%
21.4%
Participations
3.1%
0.7%
2.0%
1.9%
SANTANDER
240,579
2.2%
2.3%
PORVENIR
577,466
5.0%
18.0%
7.3%
2.8%
4.2%
1.7%
1.7%
PROTECCION
448,458
1.6%
SKANDIA 38,999
SYSTEM
1,896,124
Securitization, Mutual Funds, Unit Trust Funds and Index Funds
Libor, Real, Overnight Deposits and Derivatives net position
26
FIXED INCOME BY INTEREST RATE TYPE , EQUITY, OVERNIGHT DEPOSITS AND
DERIVATIVES NET POSITION TOTAL PORTFOLIO'S LAST YEAR EVOLUTION
US MILLION DOLLARS
Nov-07 1,896
Oct-07 1,968
Sep-07 1,985
AUG-07 1,903
Jul-07 2,160
Jun-07 2,243
May-07 2,387
APR-07 2,221
Mar-07 2,222
Feb-07 2,305
JAN-07 1,646
Dic-06 1,682
Nov-06 1,638
Oct-06 1,655 M
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Others
FIXED INCOME EURO
Flat Rate - Col Peso
IPC
Flat Rate - UVR
DTF
Flat Rate - US Dollar
Shares
Participations
In terms of the portfolio’s classification by credit risk, it is observed that 46.4% are securities issued by
the Nation, 23.5% of the investments have a AAA qualification, 21% are investments that do not require
qualification, 7.7% has a AA+ qualification 1.4% belong to securities issued by Fogafin with AA-, A+, A,
1+, BBB, BBB- qualification (Graph 36)
GRAPH 36
PORTFOLIO'S CLASIFICATION: BY CREDIT RISK
NOV 30th 2007
100%
NATION
37.1%
44.8%
53.6%
42.9%
49.7%
45.2%
46.4%
AAA
24.5%
N/A (1)
18.6%
16.6%
27.4%
30.7%
3.0%
AA+
15.7%
34.4%
27.0%
21.0%
17.0%
13.8%
18.7%
12.9%
OTHERS
5.9%
8.1%
0%
1.2%
PROTECCION
(1)
(2)
23.5%
27.4%
1.0%
PORVENIR
0.4%
3.6%
HORIZONTE
9.7%
3.7%
SANTANDER
SKANDIA
4.4%
7.7%
1.0%
1.4%
COLFONDOS
SYSTEM
Investments: Unit Trust Funds, Mutual Funds, Index Funds and Stocks
Fogafin AA-, A+, A, 1+, BBB, BBB-
Finally, it is important to mention that 3.3% of the fixed income portfolio has a remaining maturity of 180
days, 2.3% between 181 and 360 days, 9.2% between 361 and 720 days, 24.3% between 721 and
27
1,080 days, 12.6% between 1,081 and 1,440 days, 10.6% between 1,441 and 1800 days, 4.6% between
1801 and 2,160 days, 19% between 2,161 and 2,880 days, 8.6% between 2881 and 3.600 days and
5.5% has a remaining maturity of 10 years or higher (Graph 37 and Chart 3.5).
GRAPH 37
FIXED RATE PORTFOLIO BY REMAINING MATURITY DAYS
NOV 30th 2007
100.0%
4.6%
6.1%
9.1 > 3600
3.8%
4.6%
4.4%
12.0%
7.0%
10.3%
12.3%
14.3%
16.3%
24.5%
8.6%
9.4%
9. 2881 - 3600
21.7%
5.5%
12.9%
21.0%
19.0%
4.7%
8. 2161 - 2880
0.9%
6.2%
7. 1801 - 2160
7.2%
5.9%
8.1%
5.4%
9.5%
5.0%
8.5%
6. 1441 - 1800
17.4%
17.7%
10.5%
4.6%
3.6%
7.6%
10.6%
7.0%
12.5%
16.2%
5. 1081 - 1440
12.6%
11.0%
10.0%
4. 721 - 1080
20.9%
26.7%
19.3%
24.3%
23.8%
32.0%
3. 361 - 720
20.1%
17.1%
2. 181 - 360
15.8%
11.0%
6.7%
1. 0 - 180
1.3%
3.7%
4.6%
6.2%
1.8%
2.4%
2.4%
0.0%
PROTECCION
PORVENIR
HORIZONTE
9.2%
8.0%
4.2%
0.3%
1.9%
4.4%
4.4%
SANTANDER
SKANDIA
2.3%
3.3%
1.0%
COLFONDOS
SYSTEM
4. PAY AS YOU GO REGIME
4.1 PENSION RESERVE FUND´S EQUITY
Pay as you go pension reserve funds’ equity at the end of the month of November 2007 reported a
balance of USD 1.266,3 million dollars, a lower value of USD 58,7 million dollars related to the one
registered in October 2007, which is equal to a decrease of 4,43% (graph 38). The total of reserves in
November of 2007 is distributed as follows: Retirement Age USD 1.185,7 million dollars, Invalidity USD
6,0 million dollars and Survival USD 74,6 million dollars (chart 5).
GRAPH 38
RESERVE FOUNDS' EQUITY
45.01%
29.21%
65.0
5.14%
65.4
62.1
4.90%
61.0
38.5
39.6
3.04%
160.7
163.6
369.9
10
377.1
100
570.0
12.69%
618.2
Millions of Dollars
1,000
1
ISS
CAPRECOM
Oct-07
CAXDAC
Nov-07
P. ANTIOQUIA
FONPRECON
CAJANAL
Participation in November 2007
28
LAST YEAR EVOLUTION OF RESERVE FUNDS' EQUITY
2.24%
-4.43%
1,266.3
1,324.9
1,295.8
7.23%
1,208.5
1,321.0
1,218.5
3.67%
1,277.4
1.33%
-8.52%
1,045.4
300.0
1,060.1
1,046.1
900.0
600.0
0.07% 1.33%
1,113.6
2.73%
6.43%
1,017.6
Milions of Dolars
1,200.0
1,074.2
14.71% -4.61% 8.41%
0.0
Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07
EQUITY VALUE
Jul-07
Aug-07 Sep-07 Oct-07 Nov-07
MONTHLY VARIATION
Source: Supervised Entities
4.2 AFFILIATES
According to the data sent by the administrator entities of the above mentioned Regime, for September
and October 2007, the total number of affiliates was 6.108.198 and 6.111.816, respectively, which equals
to an increase of 3.618 affiliates, representing 0,06%. “CAJANAL”´s data is included taking into account
preliminary information, and “FONPRECON”´s data is in process of evaluation which is composed as
follows: In September 2007, 112 belong to Law 4th of 1992 (Members of the “Congreso de la República”)
and 616 to Law 100 of 1993 (Administrative Personal of the “Congreso de la República” and “Fondo de
Previsión Social”); in October 2007 the distribution was: 115 and 608, respectively (graph 39).
GRAPH 39
AFFILIATES
98.93%
10,000,000
1,000,000
0.98%
100,000
0.02%
10
728
723
0.01%
1,059
1,062
1,261
1,264
2,173
60,000
60,000
0.02%
2,166
100
6,046,600
1,000
0.04%
6,042,978
10,000
1
ISS
CAJANAL (1 )
CAPRECOM
Sep-07
P. ANTIOQUIA
Oct-07
CAXDAC
FONPRECON (2)
Participation in October 2007
5,996,177
0.06%
0.01%
1.07%
0.11%
0.24%
0.07%
0.12%
0.08%
0.06%
6,111,816
5,984,905
0.11%
6,108,198
0.19%
6,092,235
0.08%
6,077,640
0.00%
5,979,853
AFFILIATES' EVOLUTION IN THE LAST YEAR
2,000,000
1,000,000
6,103,456
6,096,216
6,070,854
3,000,000
6,006,601
4,000,000
6,006,159
5,000,000
6,002,842
6,000,000
0
Oct-06 Nov-06 Dec-06
Jan-07 Feb-07 Mar-07
AFFILIATES
Apr-07 May-07 Jun-07
Jul-07
Aug-07 Sep-07 Oct-07
MONTHLY VARIATION
(1) Acording to preliminary information
The total amount of quotations in October 2007 was USD 115,174 thousand dollars. The variations by
gender of the total of affiliates, between the months of August and September in 2007, are these ones:
(See the details by each Administrator as it’s shown in chart 6).
29
Affiliated Men
Quoting
Affiliated Women
Non Quoting
Quoting
TOTALES
Non Quoting
Quoting
Non Quoting
Great Total
TOTALS SEPTEMBER/07
TOTALS OCTOBER/07
765.446
1.187.099
2.929.168
2.511.162
1.141.072
692.452
1.272.512
1.721.103
1.906.518
1.879.551
4.201.680
4.232.265
6.108.198
6.111.816
VARIATIONS:
ABSOLUTE VARIATION
PERCENTAGE VARIATION
421.653
55,09%
-418.006
-14,27%
-448.620
-39,32%
448.591
35,25%
-26.967
-1,41%
30.585
0,73%
3.618
0,06%
In October of 2007, 36,7% of the total of affiliates with the “ISS”, are active, that represents, 2.219.466
and 63,3%, which is equal to, 3.827.134 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 October
2007, without including “CAJANAL” and “FONPRECON”, belongs to people who quote, representing
1.818.828; and 70% belongs to people who do not quote, representing 4.232.265. 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).
1,815,504
10,000,000
GRAPH 40
AFFILIATES' CLASIFICATION
4,231,096
1,000,000
100,000
2,062
10,000
1,020
1,000
817
241
111
242
100
10
1
ISS
CAPRECOM
P. ANTIOQUIA
QUOTING MEMBERS
CAXDAC
NON-QUOTING MEMBERS
QUOTING AND THE NON QUOTING AFFILIATES' EVOLUTION IN THE LAST YEAR
100%
90%
80%
70%
66%
66%
67%
34%
33%
68%
67%
68%
32%
33%
32%
Jan-07
Feb-07
69%
68%
69%
69%
69%
69%
70%
60%
50%
40%
30%
20%
34%
31%
32%
31%
31%
31%
31%
Jun-07
Jul-07
Aug-07
Sep-07
30%
10%
0%
Oct-06
Nov-06
Dec-06
Mar-07
Apr-07 May-07
NON-QUOTING MEMBERS
Oct-07
QUOTING MEMBERS
Source: Supervised Entities
4.3 PENSIONERS
The number of pensioners that were reported by each administrator in October 2007 was 986.431,
which represents an increase of 6.606 pensioners in comparison to September 2007, representing
0,67% (graph 41). 725.885 out of this total belong Old Age Pension, 38.706 to Invalidity and 221.840 to
Survival (chart 7). Regarding the number of pensioners by gender, 580.103 are men and 406.328 are
women (graph 42).
22.571 of the pensioners in “CAPRECOM” in the month October 2007 are divided as it follows: 13.640
are pensioners before the Law 100/93 came into force; 8.781 are pensioners after the coming into force
of the Law 100/93 and the entity is responsible for the payment of that people’s pension, FONCAP and
others; 150 in the Advance Plan of Pensions (PAP) which is in charge of the employer. 2.054 of the
pensioners reported by “FONPRECON”, 810 are under the Law 4th of 1992 (Ex-members of the
“Congreso de la República”) and 1.244 are under the Law 100 of 1993 (Administrative Personal of the
“Congreso de la República” and of the “Fondo de Previsión Social”).
30
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 1.100
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 1.100 weeks for them,
as well.
10,000,000
GRAPH 41
PENSIONERS
74.65%
22.56%
1,000,000
2.29%
0.21%
690
0.07%
690
2,044
2,233
2,225
10
22,571
22,516
222,520
100
0.23%
221,812
1,000
736,363
730,538
10,000
2,054
100,000
1
ISS
CAJANAL
CAPRECOM (1)
Sep-07
P. ANTIOQUIA
Oct-07
FONPRECON (2)
CAXDAC
Participation in October 2007
PENSIONERS EVOLUTION'S IN LAST YEAR
1.000.000
0,68%
0,63%
0,72%
0,40%
0,58%
0,50%
0,40%
0,56%
0,55%
0,57%
0,60%
0,53%
0,67%
968.808
974.632
979.825
Jun-07
Jul-07
Aug-07
Sep-07
986.431
963.362
958.077
952.761
948.979
Dec-06
943.470
Nov-06
200.000
938.753
400.000
935.055
922.569
600.000
928.398
800.000
0
Oct-06
Jan-07
Feb-07
Mar-07
Apr-07
TOTAL PENSIONERS
May-07
Oct-07
VARIATION
PENSIONERS EVOLUTION'S TO THE "ISS", LAST FIVE YEARS,
BY THE GENUS
800.000
200.000
251.419
736.363
484.944
679.491
453.491
626.630
226.000
Oct-04
201.013
Oct-03
425.617
579.675
180.088
300.000
537.149
400.000
161.750
500.000
399.587
600.000
375.399
PENSIONERS
700.000
100.000
-
MEN
Oct-05
WOMEN
Oct-06
Oct-07
TOTAL
Source: Supervised Entities
31
GRAPH 42
THE NUMBER OF PENSIONERS BY THE GENUS
6.
32
8
40
14
70%
2.
09
0
1.
08
4
.7
29
10
87
25
80%
8
1.
41
9
90%
12
8
100%
60%
0.
10
3
58
80
20%
.4
30
1.
14
9
.8
42
11
1.
17
48
30%
6
4.
94
4
40%
56
2
50%
10%
0%
IS S
CAXDAC
FONPRECON
CAPRECOM
MEN
P.ANTIOQUIA
CAJANAL
TOTAL
WOMEN
According to the administrator’s report, the monthly salary value of pensioners for October 2007, was
USD 487.412,5 thousand dollars (graph 43). USD$419.698,2 thousand of this total belong to Old Age
Pension, USD$16.691,2 thousand to Invalidity and USD$51.023,0 to Survival (chart 7).
In October 2007 CAPRECOM reported USD 22.248,4 thousand dollars as it follows: (a) USD 11.666,3
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 10.424,7 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 not made; (c) USD 157,5 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.
USD 6.579,5 thousand dollars reported by “FONPRECON” are distributed as it follows: USD 5.361,0
thousand dollars belong to the pensioners covered under the Law 4 th of 1992 (Ex-members of the
“Congreso de la República”) and USD 1.218,5 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”).
27.37%
100,000.0
1,326.7
0.27%
1,278.7
1,674.8
6,579.5
6,480.4
22,248.4
0.34%
1,645.4
10.0
130,276.0
100.0
322,170.5
1,000.0
1.35%
21,679.1
133,412.7
4.56%
10,000.0
310,601.1
US Thousand Dollars
1,000,000.0
GRAPH 43
PENSION PAYMENTS
66.10%
1.0
ISS
CAJANAL
Sep-07
CAPRECOM (1)
Oct-07
FONPRECON (2)
CAXDAC
P. ANTIOQUIA
Participation in October 2007
Source: Supervised Entities
** They includes the additional monthly pay
The average grade for this Regime’s payment of the pension in October 2007 was USD 494,1
dollars, more than 2,58% compared to last month’s pension payment (graph 44).
32
GRAPH 44
AVERAGE PENSION PAYS
494,1
481,7
437,5
425,2
599,6
587,3
1.000,0
594,1
574,7
962,8
2.000,0
985,7
3.000,0
2.427,3
2.384,7
4.000,0
3.203,3
3.170,4
Dollars
5.000,0
0,0
FONPRECON
CAXDAC
CAPRECOM
P. ANTIOQUIA
Sep-07
CAJANAL
ISS
SYSTEM´S
AVERAGE
Oct-07
EVOLUTION IN THE LAST YEAR OF THE PENSION PAYMENTS
700,000
62.2%
Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun/07
(**)
(**)
3.3%
487,412.5
471,960.6
478,523.5
0
8.4%
-9.0%
435,387.1
-37.0%
10.2%
760.065,1|
100,000
3.5%
480,476.3
200,000
2.7%
436,002.1
300,000
6.3%
421,253.7
400,000
-2.5%
395,759.8
-34.1%
410,030.7
4.7%
600,621.1
500,000
385,801.5
600,000
370,385.4
US Thousand Dollars
58.2%
Jul-07 Aug-07 Sep-07 Oct-07
Pension Payment Value
Monthly variation
Source: Supervised Entities
** They includes the additional monthly pay
4.4 INVESTMENT PORTFOLIO
The balances of the pensional reserve funds’ investment portfolios in November 2007 (having in mind
what is established in Law 490/1998 and in the statutory Decree 1404/1999 (July 28th 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 1.072,2 million dollars compared to USD 1.101,6 million dollars in
October 2007, showing a decrease of USD 29,4 million dollars which is equal to -2,67% (graph 45). The
total of investments in November of 2007 is distributed for each pensional modality as follows:
Retirement age USD 992,0 million dollars, Invalidity USD 12,0 million dollars and Survival USD 68,2
million dollars (chart 8).
GRAPH 45
INVESTMENT PORTFOLIO
1,000
41.32%
34.48%
61.2
5.71%
60.8
38.0
160.3
3.54%
38.7
369.7
376.8
443.0
10
162.7
100
462.5
US Million Dollars
14.95%
1
ISS
CAPRECOM
Oct-07
CAXDAC
Nov-07
P.ANTIOQUIA
FONPRECON
Participation in November 2007
33
INVESTMENT PORTFOLIOS´ EVOLUTION, LAST YEAR
1,072.2
1,101.6
3.04% -2.67%
1,078.7
600
1,069.0
800
993.0
4.53%
-8.39% 7.65%
1,084.0
3.22%
1,071.2
-0.02% 0.18%
945.5
4.60%
904.5
2.14%
874.8
200
876.3
400
874.7
US Million Dollars
1,000
836.3
14.09% -0.69% 1.19%
0
Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07
PORTFOLIO VALUE
Jul-07 Aug-07 Sep-07 Oct-07 Nov-07
MONTHLY VARIATION
Source: Supervised Entities
In November 2007, 91,6% of the portfolios were invested in TES, the remaining 8,4% were represented
in other bonds different to Nation bonds contained in the funds administrated by “CAXDAC”.
“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 in November of 2007 is the following one:
The investments’ portfolio value of Retirement age’s reserves, Invalidity and Survival of CAXDAC on the
30th day of November 2007 was USD 162,7 million dollars, increasing the value registered in 2,9% at the
end of the previous month, date in which it was USD 162,7 million dollars.
At the end the month of November 2007, 86,1% of the above mentioned reserves, that is, USD 138.075
thousand dollars belong to investments in fixed income; 13,7%, USD 21.939 thousand dollars belong to
changeable income investments; 0,6%, USD 977 thousand dollars to overnight deposits; and -0,4% USD
-681 thousand dollars, to net position in derivatives (rights minus obligations) (graph 46).
GRAPH 46
CAXDAC - PORTFOLIO CLASIFICATION IN: FIXED AND VARIABLE INCOME, DEPOSITS AT SIGHT AND
DERIVATIVES NET POSITION
NOVEMBER 30, 2007 - THOUSAND OF US DOLLARSS
90%
INVESTMENTS IN
FIXED INCOME
INVESTMENTS IN
VARIABLE INCOME
85.31%
86.13%
14.52%
13.69%
DEPOSITS AT SIGHT
99.49%
99.29%
NET POSITION IN
DERIVATIVES
0.39%
0.46%
0.12%
INVALIDITY
USD$4.686
0.25%
SURVIVAL
USD$4.667
0.62%
OLDNESS -0.45%
USD$150,958
0.61%
-0.43%
TOTAL
USD$160,311
-10%
SOURCE: Caxdac
In November 2007, the most significant investments were represented in 27,03% 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 24.16%; securities issued
by entities supervised by the Financial Superintendency with 14,82%; securities issued by external
34
entities with 14,52%; External public debt with 11,84%; securities issued by territorial organizations and
decentralized entities had a participation of 7,44%, and other investments had a participation of 0,18%
(graph 47).
GRAFPH 47
CAXDAC - PORTFOLIO CLASIFICATION IN: TYPE OF ISSUER
NOVEMBER 30, 2007 - THOUSAND OF US DOLLARSS
100%
19.24%
20.74%
27.46%
27.03%
23.96%
24.16%
INSTITUTIONS WATCHED BY
OTHER REGULATORY
AUTHORITY
NATION - INTERNAL PUBLIC
DEBT
INSTITUTIONS WATCHED BY
“SUPERINTENDENCIA
FINANCIERA DE COLOMBIA”
25.64%
29.13%
INVESTMENTS OF OUTSIDE
NATION -PUBLIC DEBT OF
OUTSIDE
TERRITORIAL
ORGANIZATIONS AND
DECENTRALIZED ENTITIES
13.66%
OTHER INVESTMENTS (1)
34.07%
14.82%
33.07%
14.74%
12.58%
9.89%
12.08%
14.52%
11.84%
0.00%
0.00%
8.21%
7.07%
0.39%
0%
INVALIDITY
USD$4.686
7.44%
7.43%
0.46%
0.17%
SURVIVAL
USD$4.667
0.18%
OLDNESS
USD$150,958
TOTAL
USD$160,311
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).
29.2
20.4
94.0
27.9
1,294.7
1,466.2
29.8
20.8
97.7
28.6
1,326.5
1,503.5
29.2
20.2
94.3
28.0
1,290.1
1,461.9
27.3
18.7
90.4
26.5
1,198.8
1,361.8
29.8
20.5
100.5
29.5
1,312.1
1,299.7
1,492.4
20.2
29.7
100.0
29.7
1,000.0
107.4
10,000.0
1,486.8
Millions of dollars
GRAPH 48 - PROFESSIONAL RISKS RESERVES
10.0
1.0
Jun-07
TOTAL RESERVES
Jul-07
1-MATHEMATICAL RESERVE
Aug-07
2-DEVIATION OF SINISTER
Sep-07
3-WARNED SINISTER
4-NOT WARNED SINISTER
Oct-07
Nov-07
5-PROFESSIONAL ILLNESS
SOURCE: ARP-ISS/ FINANCIAL STATEMENTS IN VERIFYING PROCESS
5.2 EMPLOYERS AND AFFILIATE EMPLOYEES
The employees affiliated with the ISS´s professional risk insurance company (ARP) during last year
(between October 2006 and October 2007) report an increase of 6,45%, being in the first period 279.952
affiliates and in October 2007 being 297.997. The affiliated workers during the same period increased in
8,97%, being 1.545.264 in October 2006 and 1.683.855 in the above mentioned period. For the months
of September and October 2007, the number of affiliated employers increased 279, which equals to
0,09%, and the affiliated workers increased in 4.215, which is equal to 0,25% (graph 49). The ARP
quotations in October 2007 was USD 10,0 million dollars.
35
Graph 49
EMPLOYEES AND WORKERS AFFILIATED
1,700,000
1,679,640
1,683,855
Sep-07
Oct-07
297,997
297,718
1,678,129
296,508
1,677,271
Jul-07
296,626
1,667,270
294,008
Jun-07
295,004
1,633,168
Apr-07
294,025
1,613,728
Mar-07
294,050
1,616,281
1,610,226
Feb-07
294,153
500,000
293,073
279,952
700,000
290,030
1,608,836
900,000
283,057
1,545,264
1,100,000
1,555,476
1,300,000
1,634,008
1,500,000
300,000
100,000
-100,000
Oct-06
Nov-06
Dec-06
Jan-07
EMPLOYEES
May-07
Aug-07
WORKERS
SOURCE: ARP-ISS
5.3 PENSIONERS
In October 2007, 11.015 from the total of the 23.119 pensioners who make the payments to the ISS´s
ARP belong to survival pension and 12.104 to invalidity pension. During the last year, the number of
pensioners for survival displayed an increase of 3,30%, regarding invalidity an increase of 0,68% and
taking into account the total of pensioners an increase of 1,91%. For the months of September and
October 2007 the data of pensioners regarding survival, invalidity and the total system displayed an
increase of 51, 34 and 85 people respectively which represents 0,47%, 0,28% and 0,37% (graph 50).
The monthly salary value of ARP’s pensioners in October 2007, was USD 6,1 million dollars and USD
3,2 million dollars of this total belong to survival and USD 2,9 million dollars to invalidity.
GRAPH 50
PENSIONERS
10,901
12,073
12,027
Sep-07
23,119
Aug-07
11,015
12,104
Jun-07
23,034
10,869
12,056
May-07
10,964
12,070
10,840
12,048
Apr-07
23,006
10,845
12,063
Mar-07
10,933
12,073
22,908
10,818
12,060
Feb-07
22,974
22,878
10,791
12,051
Jan-07
22,925
22,842
10,761
12,049
Dec-06
22,888
22,787
10,744
12,043
Nov-06
10,000
22,810
22,729
10,702
Oct-06
22,685
10,663
12,022
20,000
0
SURVIVAL
INVALIDITY
Jul-07
Oct-07
TOTAL
SOURCE: ARP-ISS
5.4 MANDATORY QUOTATIONS AND PENSION PAYMENTS
Between the months of November 2006 and November 2007, ISS´s ARP received USD 120,2 million
dollars in quotations from affiliated employers, for a monthly average of USD 9,2 million dollars. The
amount paid during the same period on pension payments was USD 88,8 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).
MANDATORY QUOTATIONS
Aug-07
Sep-07
Oct-07
11.2
10.1
10.0
10.0
9.3
Jul-07
6.1
Jun/07
(**)
5.9
May-07
5.6
Apr-07
6.3
6.3
Mar-07
12.3
11.6
5.6
Feb-07
7.9
9.9
9.3
8.0
7.6
5.3
Jan-07
5.4
Dec-06
5.3
Nov-06
(**)
5.0
3.7
8.8
9.2
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
13.2
Millions of Dollars
GRAPH 51 - MANDATORY QUOTATIONS AND PENSION PAYMENTS
Nov-07
(**)
MONTHLY TOTAL PENSION PAYMENTS
SOURCE: ARP-ISS
** They include the additional monthly payment
36