1.1 Mandatory Pension Funds Yield
23
PERFORMANCE OF MANDATORY PENSION FUNDS, VOLUNTARY PENSION FUNDS, UNEMPLYMENT FUNDS, PAY AS YOU GO REGIME AND ADMINISTRATOR OF PROFESSIONAL RISKS OF THE ISS AUGUST OF 2006
1. MANDATORY PENSIONS FUNDS
1.1 MANDATORY PENSION FUNDS YIELD
The accumulated yield of mandatory pension funds during the last three years, period that considers for the calculation of the minimum yield, was in average of the 15.78% cash annual, equivalent to a 10.10% yield real and superior to the demanded minimum yield in 4.30 percentage points. Individually, the funds reached yields that go from the 14.61% to the 18.64% (graph 1).
During the last five years mandatory pension funds obtained a yield effective average of 16.22% annual, the equivalent one to a real yield of the 9.91%, whereas the yield average from beginning of operations to the 31 of August of 2006 were of the 18.33% annual cash, that corresponds in real terms to the 6.52% (graph 2).
(*) Weighed by the balance daily average of the patrimony
(1) May 1994, without Skandia that began in March 1995
1,2 VOLATILITY AND EVOLUTION YIELDS
The average of the calculated accumulated yields during the last thirty and six months of the funds was the 17.40% of annual cash and its volatility (standard deviation) of the 1.49%. This average for the last two years was of the 17.70%, with a volatility of the 1.69%, where as for the last year the yield average was in the 18.26% and its volatility in 2.16%. The yield average and its volatility of each one of the funds during the mentioned periods is reflected in graphs 3, 4, 5 and 6.
1.3 VALUE OF THE FUNDS
The value of mandatory pension funds reached to the 31 of August of 2006 a value of USD 16.553 millions, superior in USD 674 millions the value registered to the 31 of July, that is to say, a 4.2% (graph 7, Chart 1.1).
1.4 AFFILIATED
The number of affiliated with the regime of individual saving with solidarity to the 31 of August of 2006 ascended to 6.799.647, with an increase of the 0.6%, that is to say, 42.363 affiliated as opposed to the number reported to the 31 of July. (Graph 8).
Of the total of affiliated with the funds of mandatory pension funds, the 51.3% correspond to affiliated active, that is to say, 3.487.875 and the 48.7%, that is 3.311.772 to affiliated inactive. The inactive affiliated ones are those that have not carried out quotations in at least last six months (graph 9).
Of the total of affiliated in the Regime of Individual Saving the 59.9% corresponds to non-quoting members, is to say to 4.073.33 people; the 40.1%, that is 2.726.310 people, are quoting members (graph 10). Meaning by non-quoting members those who are affiliated but are not pensioned yet, and that for some reason, they did not realized the mandatory payment for the reported moth.
Of the total number of affiliated with the funds of mandatory pension funds, the 86,1% happen less than two minimum wages, the 8.7% perceive income between two and four minimum wages and the 5.2% win more than four minimum wages.
The 55.8% of the affiliated ones oscillate between the 15 and 34 years old, of which, in this segment, the 56.5% are men and the 43.5% women.
The 96.1% of the total number of affiliated with the system correspond to workers with labor bond and the 3.9% to independent workers.
As far as the origin of the affiliated ones, it is important to write down that the 63.1% correspond to people who entered in the system, 26.3% come from the Pay As You Go Régime, the 9.6% to transfers between AFPs and the 1% comes from the Government social security funds (Chart 1.2).
1.5 PENSIONERS
To the 31 of August of 2006 the Regime of individual saving with solidarity counts on 20.812 pensioners, 12.888 for survival, 4.369 for invalidity and 3.555 of retirement age (graph 11).
The 50.6% of the pensioners are to say 10.522, have decided on the modality of programmed retiree's pension; the 49.4%, 10.288 pensioners, by the one of immediate life rent and 2 pensioners by the one of retirement programmed with deferred life rent (Chart 1.3).
1,6 INVESTMENT PORTFOLIO
As of August 31 2006, the value of portfolio of Mandatory Pension Funds reached USD$ 16,423 millions, showing a increasing of 4.4% with respect to the end of the previous month, when it was of USD$ 15,734 millions.
To the closing of August 2006, 77.6% of portfolio of the mentioned funds, that is to say, USD$12,743 millions correspond to investments of fixed income; the 21.0%, USD$3,444 millions , to investments in equity; the 1.0%, USD$ 161 millions, to overnight deposits and the 0.5%, USD$ 75 million, to the net position in derivatives (right less obligations) (Graph 12 and Chart 1.4).
Investment in public debt continues being the most significant in these funds. At August 31 2006, these investment represented the 47.0% of the value of the total of portfolio (national debt commits the 40.7%, external national debt 4.4% and territorial organizations and decentralized entities 1.9%), followed of the titles emitted by institutions watched by other regulatory authority with 20.1% and titles emitted by the Institutions watched by the Financial Supervisión that counted on a participation of the 15.9% (Graph 13 Chart 1.4 ).
The 71.5% of portfolio mention before is denominated in Colombian pesos, the 14.9% in UVR, the 10.8% in US Dollar, the 1.8% in euros and rest 1.0% in British Pound, Real ,Yen and Canadian Dollar. (Graph 14).
Concerning the foreing currency position, it is observed that 41.7%% of this position is covered from the exchange rate fluctuation risk. Uncovered portion represents the 8.0% of the total value of the funds (Graph 15 and Chart 4).
Of another part, the 28.0% of portfolio is invested in fixed income issues denominated in Colombian peso, 18.7% indexed to CPI issues, the 14.9% to fixed income in UVR, the 8.6% to the DTF, the 13.5% of portfolio is invested in stocks, 4.6% to fixed income in US Dollar, 7.5% in Shares (Derived from securitization processes, Mutual Funds, Unit trust funds and Index Fund), the 1.1% to fixed income in euros and rest 3.2% are titles indexed to the variation of the UVR, CPI middle income, Libor, fixed income in Real from Brazil, and British Pound, Overnight Deposits and net position in derivatives. (Graph 16 and Chart 1.5).
As far as the classification of portfolio by credit risk, it is observed that the 45.0% are titles emitted by the Nation, the 21.1% are investments with qualification AAA, the 4.7% AA+, the 1.1% AA, the 1.3% AA-, 22.6% are investments that do not require qualification and rest 4.3% corresponds to titles emitted by the Fogafin, titles with A+, A, 1, BBB+, BBB, BBB-, BB+, B, E and Titles of emitters in Liquidation (graph17)
Finally, it is possible to write down that 3.0% of portfolio of fixed income have an inferior maturity to 180 days, the 2.3% between 181 and 360 days, the 6.0% between 361 and 720 days, the 9.8% between 721 and 1080 days, the 11.2% between 1081 and 1440 days, the 10.8% between 1441 and 1800 days, the 14.9% between 1801 and 2160 days, the 8.2% between 2161 and 2880 days, 27.5% between 2881 and 3600 days and the 6.2% have a maturity superior to 10 years (Graph 18 and Chart 1.6).
2. VOLUNTARY PENSIONS FUNDS
2.1 VALUE OF THE FUNDS
The total value of the voluntary pensions funds administrated by pension fund administrator societies, fiduciary societies and insurance agencies to the 31 of August of 2006, reached the sum of USD 3.057millions, 1.3% superior to the registered value to the 31 of July. (Graph 19).
2.2 AFFILIATED
The number of affiliated with the voluntary pensions funds administrated by pension fund administrator societies, fiduciary societies and insurance agencies to the 31 of August of 2006 ascended to 483.419, displaying an inferior of 10.480 affiliated, a 2.1% as opposed to the number reported to the closing of the previous month (graph 20).
2.3 INVESTMENT PORTFOLIO
As of August 31 2006, the value of portfolio of the voluntary pensions funds managed by the pensions funds and unemployment funds managers, fiduciary entities and insurance companies reached USD$ 3,054 millions, showing a increasing of 3.5% with respect to the end of the previous month, when it was of USD$ 2,951 millions.
At the end of August 2006, 64.3% of portfolio of the these funds, USD$1,963 millions corresponds to fixed income investments; 24.0%, USD$ 746 millions to investments in equity; 11.0%, $335 millions dollars to overnight deposits and 0.5%, $10 million dollars to net position in derivatives. (Graph 21 and Chart 2.1.1).
The investments in Debt public investment is the most significant investment portfolio of these funds. At August 31 2006, these investments represented 28.5%, (national debt commits 22.9%, external national debt 2.8% and territorial organizations and decentralized entities 2.8%), followed by the outside these investments represented 25.4%, bonds issued by Institutions watched by the Financial Supervision with the 23.7%, and issues by of institutions watched by other regulatory authority with the 10.6% (Graph 22 and Chart 2.1.1).
The 72.6 % of portfolio mention before is denominated in Colombian pesos, the 21.1% in US dollars, the 4.1% in UVR, the 1.6% in Euros and the rest 0.6% in british pound, and yen (Graph 23).
Concerning the foreign currency position, it is observed that 45.0% of this position is covered from the exchange rate fluctuation risk. Uncovered portion represents 12.8% of the total value of the funds (Chart 4).
On the other hand, the 24.6% of the portfolio is invested in fixed income issues denominated in Colombian pesos, the 14.4 indexed to CPI, 19.6% in Shares (Derived from securitization processes, Mutual Funds, unit trust funds, and Indexed Funds), the 10.4% to the DTF, 9.0% in fixed income indexed denominated in US Dollar, the 4.1% to fixed income in UVR, the 4.8% of portfolio is invested in stocks and the rest 13.1% are fixed income issues denominated in Euro, British pound, real and titles indexed to CPI middle income, to Libor, the variation of the UVR, overnight deposits and net position in derivatives.(Graph 24 and Chart 2.1.2).
Of another part, the 17.4% of portfolio of fixed income have an inferior maturity to 180 days, 6.4% between 181 and 360 days, 11.0% between 361 and 720 days, 13.0% between 721 and 1080 days, 14.0% between 1081 and 1440 days, 9.8% between 1441 and 1800 days, 7.8% between 1801 and 2160 days, 5.2% between 2161 and 2880 days, 12.0% between 2881 and 3600 days and the 3.5% have a maturity superior to 10 years (Graph 25 and Chart 2.1.3).
3. UNEMPLOYMENT FUNDS
3.1 YIELD
During the period 31 Aug of 2004 to 31 Aug of 2006, the funds obtained a yield average of the 11.18% cash annual, equivalent to a real yield of the 6.09%. It is important to emphasize that these yields oscillated between the 8.67% and the 13.25% (graph 26).
(*) Weighed by the balance daily average of the patrimony
The obligatory minimum yield certified by the Superintendencia Financiera de Colombia for the mentioned period was of the 7.63% annual cash. In average, the funds surpassed in 3.55 percentage points this minimum yield.
3,2 VOLATILITY and EVOLUTION YIELDS
The average of the calculated accumulated yields during the last twenty-four months of the unemployment funds was 13.03% of annual cash and its volatility (standard deviation) of the 1.66%. This average for the last year was of the 13.68%, with a volatility of the 2.10%, the yield average and its volatility of each one of the funds during the mentioned periods is reflected in graphs 27, 28 and 29.
3.3 VALUE OF THE FUNDS
The funds reached to the 31 of August of 2006 a value of $1.653 millions, a 0.3% inferior one to the registered value to the 31 of July, that is to say, $4 millions (graph 30).
3.4 AFFILIATED
The number of affiliated with the funds on the 31 of August of 2006 was 3.813.605, displaying an inferior of the 1.4%, that is to say, 52.976 affiliated as opposed to the number reported to the 31 of July. (Graph 31).
Of the total of affiliated, the 96.2% correspond to dependent workers, the 2.4% to affiliated voluntary and 1.4% with independent workers. Of another part, the 63.7% of the affiliated the funds are men and the 36.3% women (To see Chart 3.2).
3.5 INVESTMENT PORTFOLIO
As of August 31 2006, the value of portfolio of the unemployment funds reached USD$ 1,646 millions, showing a increasing of 0.4% with respect to the end of the previous month, when it was of USD$ 1,653 million
To the closing of August 2006, the 81.3% of portfolio of the mentioned funds, that is to say, USD$1.338 millions correspond to investments of fixed income; the 17.4%, USD$286 millions to investments in equity, the 1.2%, USD$20 millions to overnight deposits and 0.1%, USD$ 2 millions to the net position in derivatives (right less obligations) (Chart 3.3 and Graph31)
The investment in public debt is most significant in these funds. At August 31 2006, this investment represented the 54.3% of the value of the total of portfolio (national debt commits the 45.1%, external national debt the 4.7% and territorial organizations and his decentralized the 4.5%), followed by Institutions watched by the Financial Supervision with the 17.3%the titles of institutions watched by other regulatory authority with the 15.9%, the titles emitted and investments in the outside with the 10.8% (Graph 32).