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8:30 Chairman’s Recap

8:45    AETNA’S PENETRATION OF THE LATIN AMERICAN PENSION FUND MARKET

Sergio Baeza Valdes, Chairman, AFP Santa Maria S.A. (Chile)

Aetna’s Chilean operation provides a wide range of insurance and financial services, and is building on the success of one of its subsidiaries, Santa Maria, which is one of the first private pension fund administrators. The enviable status Aetna enjoys in Chile began in 1981 when the government transferred the nation’s social security system to the private sector. Santa Maria is now Chile’s fourth largest pension fund administrator, managing $4 billion for approximately 1 million customers. In 1993, the year Peru privatized its pension fund, Aetna Chile joined with the Weise Group and the ING Group to form Peru’s leading pension administration company, AFP Integra. To take advantage of the tremendous opportunity presented by privatizing Mexico’s pension system, Aetna & AFP Santa Maria, S.A., joined with Bancomer in another joint venture, the new pension administration company, Administradoras de Fondos para el Retiro Bancomer, will benefit from Aetna’s expertise in privatizing the Chilean and Peruvian pension systems and from Bancomer’s extensive banking franchise.

This comprehensive session will provide you with an in depth analysis of one of the most powerful foreign insurance companies to entrance into the Latin American pension fund market.

9:35   THE AFP DIVERSIFICATION STRATEGY: GENERATING GREATER RETURNS IN THE CHILEAN PENSION FUND MARKET

Gonzalo Valdes Budge, President, AFP Summa SA

Since abandoning its bankrupt, state-run social security system 16 years ago, Chile has enrolled its entire working population in 15 private pension fund companies known as administradoras de fondos de pensiones. The AFPs collect 10 percent of an employee’s gross monthly salary and invest the money mainly in domestic bonds and stocks, promising to return to the contributors enough of an income to subsist in retirement.

The funds have helped to finance the privatization of Chilean industry and have virtually created the domestic corporate bond market. Their assets under management - $30 billion at the end of last year – are equivalent to 41 percent of Chile’s gross domestic product, and by 2000 that figure is expected to jump to fully half of the GDP. The AFPs have such a dominant role in the Santiago stock exchange that they own more than 10 percent of all Chilean equities and are responsible for about one quarter of all the transactions on the exchange.

As AFPs are now allowed to invest in foreign stocks, U.S. mutual fund managers and investment bankers are flooding into Santiago hoping to pick up part of the AFP business. During this enlightening presentation, you will learn how these powerful Chilean funds, plan to cut costs and diversify their portfolios to generate greater returns, without destabilizing their local equity market. This session will focus on:

• Soliciting assistance from the government in changing the laws affecting asset allocation and participant turnover which is weakening the current system
• Determining an appropriate timeline for the investment diversification process , and entrance into global equity markets
• Becoming aware that any large scale shift of foreign equities is going to have to take place slowly
• Examining the potential for success of a dual portfolio; offering one with a higher percentage of stocks for younger members and a more conservative mix for older members
• Joining forces with foreign pension fund companies to create a larger, more diverse private pension program

10:30 Networking Refreshment Break

11:00   UNDERSTAND THE IMPACT OF PRIVATE PENSION FUNDS ON THE CHILEAN MUTUAL FUNDS

Gonzalo Valdes Budge, President, AFP Summa SA

• Identify the impact of the private pension system on the development of the capital market and other savings markets such as insurance products and mutual funds
• Capitalize on the formation of a new breed of foreign investment funds which circumvent direct investment yet offer greater security than riskier equity investments
• Analyze the roles of both open and closed-ended funds which require the creation of distinct legal entities to advise and administer the two types of funds:

Open-ended mutual funds

• Bank-sponsored and marketed primarily to the retail segment and to corporate clients for cash management purposes
• Distributed through retail bank branches and brokerages
• Custody for open-ended funds is handled by a central depository (DCV), the Central Bank or the brokers executing the transactions
• Growth is projected to continue at 20-25% annually with the development of the "equity culture"

Closed-ended funds

• Sponsored by both banks and asset management boutiques, and marketed to insurance companies and AFPs
• Funds capture significant market share (more than 50% in the case of securities funds) by forming alliances with brokerages
• Growth will correspond with institutional demand, and is therefore likely to take place in the foreign investment component

12:00 Networking Luncheon for Speakers & Attendees

1:00   THE "FANNIE MEX" PROJECT: CAPITAL ADVISORS CREATE A NEW INVESTMENT VEHICLE FOR MEXICAN PENSION FUNDS

James Hass, Partner, Capital Advisors U.S./ Mexico

Capitol Advisors is advising the country’s housing authority on how to take advantage of both local pension cash and foreign investor interest to develop a market for mortgage-backed securities. Nicknamed Fannie Mex, the scheme will be tailored to meet demand by Mexican pension funds - which were recently privatized in a major reform and will be growing by US$4 billion to US$5 billion a year – for longer term securities. This in turn will increase international interest because investors know there will be a local market in which they can resell their securities. That sort of instrument could revolutionize Mexican capital markets. In Mexico, the center of gravity for maturities of local instruments has been about six months, but that is all about to change. The pension funds will not be willing to invest in short term instruments for long. Until recently, it has been the other way around, as issuers have been looking for long-term financing.

This session will focus one of the most innovative and successful business strategies used in the Mexican pension fund arena. You will develop a thorough understanding of the Mexican regulatory and economic climate, and learn first hand how this ingenious investment vehicle may revolutionize Mexican capital markets.

1:50   SIEMBRA AFPJ: THE CITICORP NETWORK EXTENDS ITS PRESENCE IN THE ARGENTINE PENSION FUND MARKET

Ricardo Guitart, CEO, Siembra AFPJ (Argentina)

• Understand the unique history and current structure of the Administradoras de Jubilaciones y Pensiones
• Identify the operational and administrative edge which Citicorp exercised in the penetration of this evolving marketplace
• Examine the inter-relations between institutional investors (life insurance companies, pension funds, and investment funds) and the functioning of Argentine financial markets
• Explore the increasingly strong link between institutional investors and the banking system
• Evaluate how pension funds will generate substantial reservoirs of medium and long term credit in Argentina

2:40 Networking Refreshment Break

3:10   THE PETROS, CENTRUS AND BRASLIGHT PENSION FUNDS CASE STUDY: THE GROWTH OF THE COMPLEMENTARY SOCIAL SECURITY MARKET IN BRAZIL

Luis Patricio do Prado Cintra Filho, Director, Boucinhas & Campos Consultores (Brazil)

• Define the term "complementary pension fund," and evaluate its efficacy as a guarantee to the post-retirement acquisition of power among Brazilian professionals
• Identify the benefit trends within the Brazilian corporate landscape and determine how the pension funds, Petros, Centrus And Braslight adapted to the rapidly changing environment
• Review the operating model to decrease administrative costs to a level compatible with the plummeting revenues that characterized the highly inflationary Brazilian economy of the late 80’s and early 90’s
• Measure the increase in preference for defined contribution or mixed plans which offer the sponsoring companies more security over the defined contribution plans
• Examine the Brazilian government’s perspective on using social security reform as an opportunity to require state-owned companies now maintaining a complementary pension fund to shift from the defined-benefit to the defined contribution type of plan
• Explore the potential economic impact of the complementary pension fund system, and identify their contribution to fund the country’s economic process

4:00   INVESTMENT OPPORTUNITIES ABOUND AS VENEZUELA’S PENSION FUNDS OPENS THEIR DOORS TO EXTENDED STOCK SELECTIONS

Christina Blassi, Citibank (Venezuela)

Hernando Diaz, Attorney at Law, Steel Hector & Davis, S.C. (Venezuela)

The public announcement of The Venezuelan government’s intention to enact a Pension Retirement Fund Law has potential investors on "alert mode," as the business opportunities seem to be very promising. In accordance with the Pension Bill, funds obtained from employer and employee contributions will be administered by Pension Administration Institutions (PAIs). The bill also states that investment grading agencies registered with the Venezuelan Securities Commission will determine which investments may be considered "low risk". Investment of funds will be limited to securities or titles duly approved by Venezuelan authorities and offered only in Venezuela.

This enlightening presentation will explore the recent developments and potential impacts of the highly anticipated Venezuelan pension fund legislation. You will learn the most effective methods in which to operate effectively in the Venezuelan pension fund market under the forthcoming regulations.

4:50 Conference Conclude