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									                                                             INVESTMENT REGIME FOR THE MANDATORY PENSION FUNDS - TITLE IV CHAPTER IV CIRCULAR BÁSICA JURÍDICA
                                                                                    (Last modification, according to External Circular 50 - 2008)

                                                                                                                                                             Global Maximum Limits (Regarding the
 CHAPTER IV                                                                 Investment Type                                                                                                                                  Minimum Ranking
                                                                                                                                                                      Value of the Fund)
1.1              Domestic Issuers' Securities
1.1.1            Public Debt                                                                                                                                                     50%
1.1.1.1                Domestic and Foreign public debt issued or guaranteed by the nation.                                                                                                                                         N/A
1.1.1.2                Other securities issued in regard to Law 80/93 and Decree 2681/93                                                                                         20%                                          Investment grade
1.1.2            Fogafin (Financial Institution Guarantee Fund) and Fogacoop (Credit Union Guarantee Fund)                                                                       10%
                                                                                                                                                                                                                                     N/A
1.1.3            Colombian Central Bank (Banco de la República)                                                                                                                  N/A
1.1.4            Bonds and Mortgage Securities and Securitizations collaterized by mortgage loans                                                                                40%                                          Investment grade
1.1.5            Securitizations collaterized by an instrument other than mortgage loans                                                                                         20%                                          Investment grade
1.1.6            Debt securities issued, guaranteed or accepted by entities supervised by the SFC                                                                                30%
1.1.6.1                Discounts on Public Contracts
                                                                                                                                                                      1.1.6.1 + 1.1.6.2 = 10%                                        N/A
1.1.6.2                Mortgage discounts
                                                                                                                                                                                                                              Investment grade
1.1.6.3                Other debt securities
                                                                                                                                                                                                               Issuer or financial instrument if that is the case
1.1.7            Debt securities issued by entities not supervised by the SFC                                                                                                    30%                                          Investment grade
                 Open-end collective portfolios without permanence clause and without participating shares. Not including Collective Portfolio Outlines                                                       Investment grade - According to debt regulatory
1.1.8                                                                                                                                                                            5%
                 (to speculate).                                                                                                                                                                                                   mandates
                 Open-end collective portfolios with closed-end or staggered permanence clause and without participating shares. Not including                                                                Investment grade - According to debt regulatory
1.1.9                                                                                                                                                                            5%
                 Collective Portfolio Outlines (to speculate).                                                                                                                                                                     mandates
1.1.10           Participating Shares                                                                                                                                            40%
                           Stock shares with high and medium trading liquidity, stock-market collective portfolios, ADRs, GDRs and stock shares of
1.1.10.1
                           privatization or capitalization processes when the nation takes part in the process                                                                                                                       N/A
1.1.10.2                   Stock shares with low and minimum trading liquidity, ADRs and GDRs                                                                                    5%
                           Open-end collective portfolios without permanence clause, and with participating shares. Not including Collective Portfolio                                                        Investment grade - According to debt regulatory
1.1.10.3                                                                                                                                                                         5%
                           Outlines (to speculate).                                                                                                                                                                             mandates
                           Open-end collective portfolios with closed-end or staggered permanence clause, and with participating shares. Not including                                                        Investment grade - According to debt regulatory
1.1.10.4                                                                                                                                                                         5%
                           Collective Portfolio Outlines (to speculate).                                                                                                                                                        mandates
1.1.11           Private Capital Funds (Decree 2175/07)(1)                                                                                                                       5%                                                N/A
1.2              Securities issued by foreign entities                                                                                                                           40%
1.2.1            Debt securities issued or guaranteed by foreign governments or foreign central banks                                                                                                               Investment grade - Sovereign Risk
1.2.2            Debt securities issued, guaranteed or accepted or originated by foreign banks                                                                                                                               Investment grade
1.2.3            Debt securities issued, guaranteed or originated by foreign entities other than banks                                                                                                                       Investment grade
1.2.4            Debt securities isseud or guaranteed by multilateral credit organizations                                                                                                                                   Investment grade
                 Participations in representative index funds of commodities, fixed income stock shares including ETFs and global mutual investment                                                             Investment grade- According to regulatory
1.2.5            funds (referring to collective portfolios outlines), when the main goal of those funds is to invest in stock shares, debt securities or                                                        mandates (90% of fixed income securities)
                 balanced. (2)                                                                                                                                                                                     N/A for stock shares and index funds
1.2.6            Stock shares, ADRs and GDRs (3)
                                                                                                                                                                                                                                     N/A
1.2.7            Overseas Private Capital Funds (4)                                                                                                                              5%
1.3              Other assets
                                                                                                                                                                                  5%
                                                                                                                                                              Not including the deposit balances of the
1.3.1            Overnight deposits in domestic or foreign Credit Institutions                                                                             amounts received by contributions, capital and
                                                                                                                                                                                                                                     N/A
                                                                                                                                                            interest maturities during the last 30 working
                                                                                                                                                                                 days
1.3.2            Colombian Central Bank (Banco de la República) payable deposits                                                                                                 10%
1.3.3            Active and simultaneous repurchase agreements (repos)
1.3.3.1                Active and simultaneous repurchase agreements (repos) on admissible investments                                                                           10%                                     According to security type
                       Active and simultaneous repurchase agreements (repos) negotiated within the Agricultural Stock Exchange Market (Bolsa
1.3.3.2                                                                                                                                                                          3%                                                  N/A
                       Nacional Agropecuaria)
1.3.4            Domestic and Foreign hedging products                                                                                                      According to the securities that are part of it                   Investment grade
1.3.5            Temporary equity transfer                                                                                                                                     30%
   Chapter IV                                                                                                      OTHER INVESTMENT LIMITS
                                                                                                                                                                   1.1.10 + 1.2.6 + 1.2.5* = 40%
                                                                                                                                                              * Not including the commodities and
3.15             Participating shares
                                                                                                                                                             fixed income index funds, neither debt
                                                                                                                                                                          security funds
                 Global investment limit
3, Paragraph 1
    and 2
                                                                                                                                                              Global Maximum Limits (Regarding the
CHAPTER IV                                                                    Investment Type                                                                                                                              Minimum Ranking
                                                                                                                                                                        Value of the Fund)
3, Paragraph 1
    and 2      Regarding the securities endorsed, issued or guaranteed the global limit must be charged to the group or security type which corresponds to the entity that endorses issues or guarantees the security, in a guaranteed or accepted
               In the case of the hedging products, they are considered as debt securities with changeable income and for the global limit, it must be charged to the group or the security type which belongs to the issuer of each of the components
               Individual Limit by issuer
               Up to 10% of the fund's value on securites issued by each issuer, including its agencies and holdings, its headquarters (with its own agencies and holdings).
       4       This limit does not apply on securities issued or guaranteed by the nation, the Colombian Central Bank (Banco de la República) and the repurchase agreements made through the Clearing House of the Agricultural Stock Exchange
               For the calculation of the individual limits in the case of the securities endorsed, accepted or guaranteed, the guaranteed proportion will be used to calculate this limit for the guarantor and the non guaranteed or accepted proportion
               In regard to the securities derived from securitizations, the individual limit will be charged to the total value of each Autonomous Financial Trust.
                In the case of the hedging products, whose components correspond to different counterparts, but the same was acquired to other entity that acts as the seller and is not liable for its payment, the individual investment limit must be
               Issuance Limits
       5       UP to 30% of any securities issuance, including the securities that come from securitizations.
               This limit does not apply on CDT (Fixed Term certificates of deposits) and CDAT (Fixed Term saving certificates of deposits) issued by credit institutions neither on securities issued or guaranteed by the nation, the Colombian
               Shareholding Limits
       6
               Up to 10% of the securities and up to 10% of the Boceas (Mandatorily-convertible bonds into common stock) which are being traded.
               Investment limits on Affiliated Shareholders*
       7       Up to 10% for the investments within the managers' affiliated shareholders
               Investment limits by issuer and by shareholding are reduced to 5% when they are related to securities whose issuer, endorser or originator of a securitization is affiliated with the manager
               The limit by issuance is calculated taking into account the effectively done issuance (secondary) on entities or persons not affiliated with the fund's manager (primary)
       8       Transactions with derivatives
               With the resources that are part of the Mandatory Pension Funds, investments in derivatives are allowed, if they fulfill the following risk limits:
                Investments in derivatives for hedging purposes must fulfill the requirements regarding the documents and the effects that in the future will have the effectiveness rate of the hedge referenced in Chapter XVIII of the Circular Básica
                Contable y Financiera (External Circular 100/1995)
                Limits of such hedge transactions can be settled by the managers with the investment policies, duly approved by the board of directors
                The sum of the hedge positions in foreign currencies, with a net valuation, through such instruments, can not exceed the market value of the fund’s foreign currency investments
                The sum of the non-hedged investments in foreign currencies that a Mandatory Pension Fund can hold can not exceed thirty percent (30%) of the fund’s value
                Nevertheless, the Pension Fund Managers, with the resources of the Mandatory Pension Funds, could acquire from foreign investors structured products that involve credit derivative financial instruments, as long as they fulfill all the
                requirements demanded by the Superintendencia Financiera de Colombia in Chapter XVIII of the Circular Básica contable y Financiera. In the same way, foreign exchange operations are regulated by the Resolución 8 of 2000 of the
                Directive Board of the Banco de la República (Colombian Central Bank), modified by the Resolución Externa 7 of 2008 idem, and other rules that modify or substitute it.
                The Mandatory Pension Fund Managers can negotiate derivatives with speculation purposes. This must be done according to the two (2) following modalities methods: i) Purchase of Call or Put options; and ii) strategies that
                combine the purchase of call or put options and of other basic derivative(s), as long as all the instruments involved in the strategy have the same underlying asset and maturity date.
                The sum of the paid premiums and the maximum risk for the open-end transactions with derivatives, with speculation purposes according to this section, as the risk value materialized as a consequence of such transactions that
                were closed, during the last twelve (12) months, can not exceed one percent (1%) of the fund’s value, valued at the close of each month.
                Authorized chambers of counterpart’s central risk
                America                                                                                                                               Europe                                         Asia
                The Canadian Depository for Securities Limited (CDS), Toronto, Ontario                                                                   LCH. Clearnet Group Ltd                          Hong Kong Exchanges and Clearing Limited (HKEx)
                The Depository Trust & Clearing Corporation, New York                                                                                    EuroCCP (European Central Counterparty Ltd)      Singapore Exchange Limited (SGX)
                The Options Clearing Corporation (OCC), Chicago, Illinois                                                                                Eurex Clearing AG                                Tokyo Stock Exchange (TSE)
                OMX                                                                                                                                      SIS x-clear AG
                Chicago Mercantile Exchange Clearing House. (CME Clearing)                                                                               MEFF
                Contraparte Central de Valores de México S.A.                                                                                            Oslo Clearing ASA
                The Brazilian Clearing and Depository Corporation (CBLC), São Paulo                                                                     NOS ASA
                Cámara de Riesgo Central de Contraparte                                                                                                  ClearnetSBFSA, Paris

								
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