1.1 Mandatory Pension Funds Yield

PERFORMANCE OF MANDATORY PENSION FUNDS, VOLUNTARY PENSION FUNDS, UNEMPLOYMENT FUNDS, PAY AS YOU GO REGIME AND ADMINISTRATOR OF PROFESSIONAL RISKS OF THE ISS AUGUST OF 2007

1. MANDATORY PENSION FUNDS

1.1 MANDATORY PENSION FUNDS YIELD

The accumulated yield of mandatory pension funds during the lastthree years, period that is consideredfor the calculation of the minimum yield, was in average of the 13.03% cash annual, equivalent to a7.70% real yield and superior to the demanded minimum yield in 3.23 percentage points. Individually, the funds reached yields that go from 11.96% to 14.88% (graphs 1 and 2).

During the last five years mandatory pension funds obtained anaverage effective annual yield of 13.65%, the equivalent one to a real yield of the 7.63%, whereas the average yield from the beginning of operations to 31 of Augustof 2007 were of the 16.28% annual cash, that corresponds in real terms to 5.10% (graph 3).

(*) Weighed by the daily balance average of the patrimony

(1) May 1994, excepting Skandia that began in March 1995

1.2 VOLATILITY AND EVOLUTION YIELDS

1.2.1 MONTHLY YIELD AND VOLATILENESS

The monthly yield average of Mandatory Pension Funds during last thirty and six months, was between the 12,93% and 16,11% (annual cash), with annualized volatilenesses of 6,25% and 7,19%, respectively. The yield and volatileness of each one of the funds are reflected in graph 4.

1.2.2 VOLATILINESS AND ACCUMULATED YIELD

The accumulated yield average of Mandatory Pension Funds during last thirty and six months, was between the 11.96% and 14,88% (annual cash), with annualized volatilenesses of 2,20% and 2,60%, respectively. The yield and volatileness of each one of the funds are reflected in graph 5.

(*) It corresponds to the accumulated yield of the last 36 months

1.3 VALUE OF THE FUNDS

The value of mandatory pension funds reached to 31 of August of 2007 a value of USD 21.775 millions, inferior in USD2.015 millions the value registered to the 31 of July, that is to say, a8.5% (graph 6 and 7, Chart 1.1).

1.4 AFFILIATED

The number of affiliated with the regime of individual saving with solidarity to the 31 of Augustof 2007 ascended to a 7.582.676, with an increase of the 1.3%, that is to say, 94.819affiliated as opposed to the number reported to 31 of July of 2007. (Graph 8).

Of the total membersofthe mandatory pension funds, 53.9% are active, that is to say, 4.090.048 and 46.1%, that is,3.492.628are inactive. The inactive membersare those that have not carried out quotations in at least the last six months (graph 9).

Of the total of membersof the Individual Saving Regime,56.2% corresponds to non-quoting members, that is to say, to4.264.311people; 43.8%, that is 3.318.365people, are quoting members (graph 10). Meaning by non-quoting members those who are affiliated but are not pensioned yet and that, for some reason, did not realize the mandatory payment for the reported moth.

Of the total number of affiliated with the funds of mandatory pension funds, 83.2% perceive income of less than two minimum wages, 10.7% between have an income two and four minimum wages and 6.1% ofmore than four minimum wages.

55.8% of the affiliated oscillate between 15 and 34 years of age, of which, in this segment, 55.5% are men and 44.5% women.

95.6% of the total number of affiliated with the system correspond to workers with labor bond and 4.4% to independent workers.

As far as the origin of the affiliated, it is important to note that 58.3% correspond to people who entered tothe system, 29.2% come from the Pay As You Go Régime, the 11.9% to transfers between AFPs and 0.6% come from the Government social security funds (Chart 1.2).

1.5 PENSIONERS

To 31 of August of 2007 the Individual Saving with Solidarity Regime has 24.738pensioners, 14.779forsurvival, 5.492forinvalidity and 4.467ofretirement age (graph 11).

51.9% of the pensioners, that is12.847, have chosen the modality of programmed retiree's pension; 48.1%, 11.890pensioners, the immediate life rent and 1pensionerelected the programmed retirement with deferred life rent (Chart 1.3).

1.6 INVESTMENT PORTFOLIO

As of August 31 2007, the value of portfolio of Mandatory Pension Funds reached USD$ 21,768 million, showing a decrease of 8.5% with respect to the end of the previous month, when it was of USD$ 23,790 million.

To the closing of August 2007, 73.7% of portfolio of the mentioned funds, that is to say, USD$16,042 million correspond to investments of fixed income; the 24.7%, USD$ 5,386 million, to investments in equity; the 1.3%, USD$ 286 million, to overnight deposits and the 0.3%, USD$ 55 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 2007, these investment represented the 46.5% of the value total of portfolio (national debt commits the 42.2%, external national debt 1.9% and territorial organizations and decentralized entities 2.4%), followed of the titles emitted by institutions watched by other regulatory authority with 20%, titles emitted by the Institutions watched by the Financial Supervisión that counted on a participation of the 16.3% and the outside investments with a participation a 14.1%.

(Graph 13 Chart 1.4 ).

The 73% of portfolio mention before is denominated in Colombian pesos, the 14% in UVR, the 11.2% in US Dollar, the 1.5% in euros and rest 0.3% in British Pound, Real and Yen. (Graph 14).

Concerning the foreing currency position, it is observed that 55.4% of this position is covered from the exchange rate fluctuation risk. Uncovered portion represents the 5.8% of the total value of the funds (Graph 15 and Chart 4).

Of another part, the 29.7% of portfolio is invested in fixed income issues denominated in colombian peso, 17.7% indexed to CPI issues, the 14% to fixed income in UVR, the 16.2% of portfolio is invested in stocks, 8.5% in Shares (Derived from securitizacion processes, Mutual Funds, Unit trust funds and Index Fund), the 7.3% to the DTF, 4.1% to fixed income in US Dollar, the 0.4% to fixed income in euros, 1.3% Overnight Deposits and the rest 0.8% are titles indexed to fixed income in Real from Brazil, CPI middle income, Libor 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 44.1% are titles emitted by the Nation, the 24.7% are investments with qualification AAA, the 2.8% AA+, the 3.4% AA, 0.9% AA-, 20.4% are investments that do not require qualification and rest 3.8% corresponds to titles emitted by the Fogafin, titles with A+, 1+, A-, BBB+, BBB, BBB-, B, E and Titles of emitters in Liquidation (graph17)

Finally, it is possible to write down that 2.3% of portfolio of fixed income have an inferior maturity to 180 days, the 1.8% between 181 and 360 days, the 5.9% between 361 and 720 days, the 12.2% between 721 and 1080 days, the 15.3% between 1081 and 1440 days, the 10.3% between 1441 and 1800 days, the 4.1% between 1801 and 2160 days, the 23.5% between 2161 and 2880 days, 9.8% between 2881 and 3600 days and the 14.9% 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 pension funds administrated by pension fund administrator societies, fiduciary societies and insurance agencies, to 31 ofAugust of 2007 reachedthe sum of USD 3.110millions, 8.5% inferior to the registered value to 31of July of 2007. (Graph 19).

2.2 AFFILIATED

The number of affiliated with the voluntary pensionsfunds administrated by pension fund administrator societies, fiduciary societies and insurance agencies to 31 of August of 2007 ascended to 488.304, displaying an increase of 1.409members, as opposed to the number reported to the closing of the previous month (graph 20).

Of the total number of affiliated, 47.8% perceive income of less than two minimum wages, 9.2% have an income between two and four minimum wages and 43% ofmore than four minimum wages.

66.6% of the affiliated oscillate between30 and 54 years of age, of which, in this segment, 50.9% are men and 49.1% women.

70.6% of the total number of affiliated with the system correspond to workers with labor bond and 29.4% to independent workers.

2.3 INVESTMENT PORTFOLIO

As of August 31 2007, 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$ 3,130 million, showing a decrease of 8.5% with respect to the end of the previous month, when it was of USD$ 3,420 million.

At the end of August 2007, 62.9% of portfolio of the these funds, USD$1,968 million corresponds to fixed income investments; 18%, USD$ 563 million to investments in equity, 18.2%, $569 million dollars to overnight deposits and 1%, $30 million dollars to net position in derivatives. (Graph 21 and Chart 2.1.1).

The titles emitted by Institutions watched by the Financial Supervisión is the most significant investment portfolio of these funds. At August 31 2007 these investments represented 27.1%, followed by the outside investments with the 23%, Debt public investment 18.7% (national debt commits 15.4%, external national debt 0.8% and territorial organizations and decentralized entities 2.5%), followed of the overnight deposits with the 18.2%, and issues by of institutions watched by other regulatory authority with the 11.9% (Graph 22 and Chart 2.1.1).

The 75.9% of portfolio mention before is denominated in Colombian pesos, the 18.2% in US Dollars, the 3.2% in UVR, the 2.5% in Euros and the rest 0.3% in British pound, Reales Yen, and Canadian Dollar (Graph 23).

Concerning the foreign currency position, it is observed that 49.9% of this position is covered from the exchange rate fluctuation risk. Uncovered portion represents 10.5% 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 18.2% to overnight deposits, the 13% indexed to CPI, the 11.3% to the DTF, 10.9% in Shares (Derived from securitization processes, Mutual Funds, unit trust funds, and Indexed Funds), the 10.6% in fixed income denominated in US Dollar, the 7.1% of portfolio is invested in stocks , the 3.2% to fixed income in UVR, and the rest 1.1% are fixed income issues denominated in Euro, Canadian Dollar, titles indexed to Libor, CPI middle income and net position in derivatives.(Graph 24 and Chart 2.1.2).

Of another part, the 35% of portfolio of fixed income have an inferior maturity to 180 days, 8.3% between 181 and 360 days, 11.9% between 361 and 720 days, 12% between 721 and 1080 days, 11.4% between 1081 and 1440 days, 7.5% between 1441 and 1800 days, 2.5% between 1801 and 2160 days, 3.7% between 2161 and 2880 days, 5.3% between 2881 and 3600 days and the 2.3% have a maturity superior to 10 years (Graph 25 and Chart 2.1.3).

3. UNEMPLOYMENT FUNDS

3.1 YIELD

Between31Augustof 2005and31Augustof 2007, the funds obtained anaverage yield of 4.47% cash annual, equivalent to a real yield of the -0.48%. It is important to emphasize that these yields oscillated between 3.61% and 6.23% (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 1.90% annual cash. In average, the funds surpassed this minimum yield in 2.57 percentage points.

3.2. YIELD AND VOLATILENESS

3.2.1 MONTHLY YIELD AND VOLATILENESS

The monthly yield average of the unemployment funds during last the twenty-four months, was between the 4.90% and 7,91% (annual cash), with anualizadas volatilenesses of the 5,72% and the 4.83% respectively. The yield and volatileness of each one of the funds are reflected in graph 27.

3.2.2 ACCUMULATED YIELD AND VOLATILENESS

The accumulated yield average of the unemployment funds during last the twenty-four months, was between the 3.61% and 6,23% (annual cash), with anualizadas volatilenesses of the 3,79% and the 3.62%, respectively. The yield average and volatileness of each one of the funds is reflected in graphs 28.

3.3 VALUE OF THE FUNDS

The funds reacheda value of $1.886millions to 31of Augustof 2007; a12.3% inferior to the registered value to 31 of July (graphs29 and 30).

3.4 AFFILIATED

The number of affiliated with the funds on 31of August of 2007 was 4.129.922, displaying a decreaseof 1.6%, that is, 66.742affiliated as opposed to the number reported to 31of Julyof 2007. (Graph 31).

Of the total members, 96% correspond to dependent workers, 2.5% to voluntary members and 1.5% toindependent workers. Onanother hand, 65.1% of the members of the funds are men and 34.9% women (To see Chart 3.2).

3.5 INVESTMENT PORTFOLIO

As of August 31 2007, the value of portfolio of the unemployment funds reached USD$ 1,903 million, showing a decrease of 11.9% with respect to the end of the previous month, when it was of USD$ 2,160 million

To the closing of August 2007, the 81.4% of portfolio of the mentioned funds, that is to say, USD$ 1,549 million correspond to investments of fixed income; the 17.9%, USD$ 341 million to investments in equity, the 0.7%, USD$ 13 million to overnight deposits and 0.02%, 0.4 million 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 2007, this investment represented the 52.6% of the value of the total of portfolio (national debt commits the 45.6%, external national debt the 1.6% and territorial organizations and his decentralized the 5.5%), followed by the Institutions watched by other regulatory authority with the 18.8%, the titles of institutions watched by the Financial Supervision with the 16.6%, the titles emitted and investments in the outside with the 11.1% and overnight deposits with the 0.7%(Graph 32)

The 74.7% of portfolio in mention are denominated in Colombian pesos, the 14.3% in UVR, the 9.5% in US Dollar, the 1.1% in euros, the 0.1% in real, and the rest 0.2% in yen (Graph 33)

Concerning the foreing currency position, it is observed that the 55.1% of the same one are covered from the exchange rate fluctuation risk and that the discovered part represents 4.9% of the total value of the funds (Graph 34 and Chart 4)

On the other hand, the 32.2% of the portfolio is invested in fixed income issues denominated in Colombian pesos, the 24.3% indexed to CPI, the 14.3% to fixed income in UVR, 9.2% in Shares (Derived from securitization processes, Mutual Funds, unit trust funds, and Indexed Funds), 8.7% of portfolio is invested in stocks, 8% to DTF, 2.1% in fixed income in US Dollar, 0.3% are fixed income issues denominated in euro, and the rest, 1% are titles in Real, Libor, overnight deposits and net position in derivatives. (Graph 35 and Chart 3.4)

As far as the classification of portfolio by credit risk, it is observed that the 47.1% are titles emitted by the Nation, the 27% investments with qualification AAA, the 6.2% AA+, the 3.9% AA, the 12% are investments that do not require qualification, and rest 3.7% corresponds to titles emitted by Fogafin, titles with qualification AA-, A+, 1+, BBB+, BBB, BBB-, B, titles with distant qualification and Titles of emitters in Liquidation (Graph 36)

Finally, it is important to write down that the 1.4% of portfolio of fixed income have an inferior maturity to 180 days, the 5.5% between 181 and 360 days, the 8.1% between 361 and 720 days, the 19.3% between 721 and 1,080 days, the 17% between 1,081 and 1,440 days, the 10.6% between 1,441 and 1800 days, the 4.6% between 1801 and 2,160 days, the 18% between 2,161 and 2,880 days, the 10.3% between 2881 and 3.600 days and the 5.2% have a maturity superior to 10 years (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 August 2007 it reported a balance of USD1.208,5 million dollars, inferior value –USD112,6 million dollars in relation to the registered one at July of 2007, which means a decrease of the -8,52% (graphical 38). The total of reserves to August of 2007 is distributed thus: Retirement Age USD1.137,3 million dollars, Invalidity USD7,0 million dollars and Survival USD64,2 million dollars (chart 5).

Source: Supervised Entities

4.2 AFFILIATES

According to the numbers sent by the administrator entities of the mentioned Regime, for June and July of 2007, the total number of affiliates was of 6.092.235 and 6.096.216, respectively, showing a growth of 3.981 affiliated, representing 0,07%. “CAJANAL”´s number is included taking into account preliminary information, and “FONPRECON”´s data is in process of evaluation is composed as follows: In June 2007, 106 correspond to Law 4th of 1992 (Members of the “Congreso de la República”) and 613 to Law 100 of 1993 (Administrative Personal of the “Congreso de la República” and of the “Fondo de Previsión Social”); in July 2007 the distribution was: 109 and 619, respectively (graph 39).

(1) According to preliminary information

(2) In June 2007: 106 correspond to Law 4th of 1992 and 613 to Law 100 of 1993; in July 2007 the distribution was: 109 and 619, respectively. (Figures in verification)

Source: Supervised Entities

Source: Supervised Entities

The total amounts who quote in July 2007 ascended to USD 123.241 thousands of dollars. The variations by genus, of total affiliates, between the months of June and July of 2007, are the next. (See in chart 6, the detail by each Administrator)

In July of 2007, of the total of affiliates with the “ISS”, 37,3% are active, that is to say, 2.246.646 and 62,7%, that is, 3.782.216 are inactive. Inactive affiliated are those that did not make the obligatory payment in at least the six last months.

From the total of affiliates for each of the administrators of the Pay As You Go Regime in July 2007, without including “CAJANAL” and “FONPRECON”, 31% corresponds to people which quote, representing 1.876.298; and 69% corresponds to people which do not quote, representing 4.159.190. It is understood like people who do not quote to those affiliated and not-pensioners yet, who for some reason, with they did not do the mandatory payment during the month for which is reported (graph 40).

Source: Supervised Entities

4.3 PENSIONERS

The number of pensioners that reported by each-one of the administrators to July 2007 was 968.808, presenting a rise of 5.446 pensioners with respect to June 2007, representing 0.57% (graph 41). Of this total, 711.565 correspond to Oldness, 38.419 to Invalidity and 218.824 to Survival (chart 7). With relation to the number of pensioners by the genus, 570.906 are men and 397.902 are women (graph 42).

In “CAPRECOM”, of the 22.148 pensioners to July 2007, 13.628 are pensioners prior to the entrance in use of Law 100/93; 8.369 are pensioners in use of Law 100/93 concurs Organization, FONCAP and others; 151 in the Advance Plan of Pensions (PAP) to employer responsibility. From the 2.032 pensioners reported by “FONPRECON”, 805 correspond to Law 4th of 1992 (Ex-members of the “Congreso de la República”) and 1.227 to Law 100 of 1993 (Administrative Personal of the “Congreso de la República” and of the “Fondo de Previsión Social”).

According to article 33 of Law 100 of 1993, 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 must at any time have contributed with 1.100 weeks. Whereas for the women the age of the retirement is 55 years, but the weeks of the contribution continue being equal, meaning 1.100 weeks at any time.

(1) CAPRECOM: In July 2007: 13.628 are pensioners prior to the entrance in use of Law 100/93; 8.369 are pensioners in use of Law 100/93 concurs Organization, FONCAP and others; 151 in the Advance Plan of Pensions (PAP) to employer responsibility. (Numbers in evaluation)

(2) FONPRECON: In June 2007: 810 correspond to Law 4th of 1992 and 1.221 to Law 100 of 1993; in July 2007 the distribution was: 805 and 1.227, in the same order. (Figures in verification)