PRESS RELEASE

Regulatory announcement: Colombia's financial services regulator

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Monday, November 20, 2017

Circular of the Financial Superintendence of Colombia

(Published in English through a machine translation)

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CIRCULAR LETTER 86 OF 2017

(November 10)

To: LEGAL REPRESENTATIVES AND FISCAL REVISORS OF THE PENSION FUNDS ADMINISTRATION AND REMITTANCES.

Reference: Mandatory minimum profitability of the short and long-term portfolios of the unemployment funds and the types of mandatory pension funds, conservative, special for programmed, moderate and higher risk retirement.

Dear sirs:

In accordance with the provisions of article 101 of Law 100 of 1993, modified by article 52 of Law 1328 of 2009, the pension fund and unemployment fund management companies must guarantee affiliates a minimum return for each of them. the types of mandatory pension funds and portfolios of the severance funds, which will be determined by the National Government.

In compliance with the foregoing, articles 2.6.5.1.1 and 2.6.9.1.7 of Decree 2555 of 2010, established that the Colombian Financial Superintendency must calculate and disclose a mandatory minimum return for each of the types of funds available. mandatory pensions and portfolios of the unemployment funds, in the terms indicated in said decree.

Similarly, articles 2.6.5.1.5 and 2.6.9.1.5 of the aforementioned Decree 2555 determined that compliance with the mandatory minimum profitability for each of the types of mandatory pension funds and portfolios of the unemployment funds will be verified. monthly by the Financial Superintendence of Colombia, for the periods of calculation established in articles 2.6.5.1.4 and 2.6.9.1.4 of the aforementioned decree 2555.

Taking into account the above, this Superintendence is allowed to inform:

Annual Cash

Mandatory minimum profitability of the short-term portfolio of the unemployment funds for the period from July 31 to October 31, 2017

3.34%

Mandatory minimum profitability of the long-term portfolio of the unemployment funds for the period October 31, 2015 to October 31, 2017

5.57%

Minimum mandatory profitability for the conservative fund type for the period October 31, 2014 to October 31, 2017

6.37%

Minimum mandatory profitability for the type of special retirement fund programmed for the period from October 31, 2014 to October 31, 2017

6.71%

Minimum profitability for the moderate fund type for the period October 31, 2013 to October 31, 2017

5.45%

Minimum return for the highest risk fund type for the period October 31, 2012 to October 31, 2017

5.17%

Cordially,

LUIS FELIPE JIMENEZ SALAZAR

Deputy Superintendent for Pensions.