1. Mandatory Pension Funds

1

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 lastthree years, period that is consideredfor the calculation of the minimum return, was in average 9.32% annual effective, which equals to areal 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).

(*) Weighed by the equity’s daily average balance

During the last five years, mandatory pension funds obtained anaverage 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).

(*) 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.

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 ofFebruary29th,2008 theamount of USD 27.254 millions, USD1.706 millions more than the value registered as ofJanuary 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 7,876US million dollars(graph 6 and 7, Chart 1.1).

1.4 AFFILIATES

The number of affiliates with the individual savings with solidarity regime as of the 29th day of February 2008was7.984.503, with an increase of 1%, that is, 77.673more individuals affiliated than the ones reported as ofJanuary 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).

55.2% of the mandatory pension funds’total membersare active, in other words, 4.389.348;and 44.8%,which equals to3.559.155are inactive. Those inactive membersare those who have not made any quotations in at least the last six months (graph 9).

57.6% of the Individual Savings Regime’stotal membersbelongs to non-quoting members, whichis equal to4.576.552people; and42.4%, that is 3.371.951people, 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.

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 affiliatesare 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 affiliatedtothe system, 27.8% come from theInstituto 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 ofFebruary29th2008, the Individual Savings with Solidarity Regime has 26.550 pensioners, 15.518 forsurvival, 6.029forinvalidity and 5.003for old age retirement (graph 11).

52.6% of the pensioners, that is13.954, have chosen the modality of programmed retirement pension; 47.4%, 12.595pensioners, the immediate life rent and 1pensionerelected the programmed retirement with deferred life rent (Chart 1.3).

1.6 INVESTMENT PORTFOLIO

As ofFebruary29th2008, the Mandatory Pension Fundsportfolio’s value reached USD$27,275 thousandmillions, showing an increase of 6.7% in comparison to the end of the previous month, when it was USD$25,557thousandmillions.

At the end as of February 2008, 69.3% of theabove 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 (rightsminus obligations) (Graph 12 and Chart 1.4).

Investment in public debt continues being the most significant one of these funds. As ofFebruary29th 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).

(1) Others: Derivatives net position

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).

(1) Others: British Poundand Yen

Regarding the foreign currency position, it is observed that 53.2% is covered from the exchange rate fluctuation risk. The uncovered part represents the 5.3% of the funds’ total value (Graph 15 and Chart 4).

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).

1) Libor, British Pound, fixed income in Euro, floating UVR and net position in derivatives

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 securitiesissued by Fogafin (Graph17)

(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).

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 ofFebruary29th2008 reachedthe value of USD 3.786millions, 5.7% more than the value registered as ofJanuary 31st(Graph 19).

2.2 AFFILIATED

The number of affiliates with the voluntary pensionsfunds administrated by pension fund administrator societies, fiduciary societies and insurance agencies as ofFebruary29th2008 was512.593, showing an increase of 5.915members, compared to the number reported on the final day of the previous month (graph 20).

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 affiliatedpeople are between30 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 29th2008, 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 anincrease of 5.7% compared to the end of the previous month, when it was USD$ 3,604 million.

At the end as ofFebruary 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 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).

The securities issued by Institutions supervised by the Financial Superintendency are the most significant investments of these funds.As ofFebruary29th2008, 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 with14.3% (national debt represents 9.5%, external national debt 2.7% and territorial organizations and decentralized entities 2.2%). (Graph 22 and Chart 2.1).

(1) Fogafin and operations report active

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).

(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 fundsand 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).

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).

3. UNEMPLOYMENT FUNDS

3.1 RETURN

BetweenFebruary28th2006andFebruary29th 2008, the funds had anaverage 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).

(*) 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.

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.

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 of3,52% and 4.70%, respectively. The average return and volatility for each one of those funds are shown in graph 28.

(*) It belongs to the accumulated return of the last 24 months

3.3 VALUE OF THE FUNDS

As ofFebruary29th, 2008 the amount of USD 2.864 millions, USD 971 millions more than the value registered as ofJanuary 31st, in other words, 51.3%. Regarding the same month in 2007, the funds have had an increase of 25%, which is equal to 573US million dollars (graphs29 and 30).

3.4 AFFILIATES

The number of people affiliated with the funds as ofFebruary29th2008 was 5.006.558, with a creaseof 25.4%, that is, 1.015.598less people compared to the ones that were with the funds as ofJanuary 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.

96.2% of the total members are dependent workers, 2.4% arevoluntary members and 1.4% are independent workers. Onthe other hand, 66.5% of the funds’ members are men and 33.5% women (Chart 3.2).

3.5 INVESTMENT PORTFOLIO

As ofFebruary29th2008, 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) andActive Report Operations 0.2%(Chart 3.3 and Graph31)

The investments in public debt arethe most important oneswithin these funds. As ofFebruary29th 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 securitiesissued by the institutions supervised by the Financial Superintendency with23.2%, the Institutions supervised by other regulatory authorities with 13.2%, overnight deposits with 12.8%and external investments with 9.3% and (Graph 32)

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)

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)

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)

(1)Libor, Euros and Derivatives net position

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)

(1)Investments: Unit Trust Funds, Mutual Funds, Index Funds and Stocks

(2)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 aremaining 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).

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).

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%.

(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.

Source: Supervised Entities

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).

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).

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.

(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)