IDB RETIREMENT PLANS

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IDB RETIREMENT PLANS
March 15, 2001 AFP Association of Chile and FIAP
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STAFF RETIREMENT PLAN

• Fund Objective
• To generate a real return
• of 4.5, i.e. after inflation
• and management and custody fees.

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STAFF RETIREMENT PLAN Asset Allocation as of
December 31, 2000

Inflation-sensitive investments include real
estate, commodities, and inflation- indexed
bonds.
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STAFF RETIREMENT PLAN

• Fund Structure
• External investment managers
• Four U. S. equity managers.
• Three non-U.S. equity managers.
• One currency overlay manager.
• One fixed income manager.
• Three real estate managers.
• One commodity index futures manager.
• One cash reserves manager.
• 
  
  
  Internally managed portfolio
• U. S. Treasury Inflation Protection Securities.

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STAFF RETIREMENT PLAN

• Fund Structure
• U.S. Equity Sector
• One Passive, Large Capitalization Manager.
• Three Active, Mid-to Small-Capitalization
  Manager, balancing Value and Growth Attributes.

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STAFF RETIREMENT PLAN

• Fund Structure
• Non-U.S. Equity Sector
• One Passive, Large Capitalization Manager.
• Two Active Managers, balancing Value and Growth
  Attributes.
• One Active Emerging Markets Manager.
• One Currency Overlay Manager.

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STAFF RETIREMENT PLAN

• Fund Structure
• Fixed Income Sector
• One Active, Core-Plus Manager, investing
  primarily in high quality U.S. fixed income and
  opportunistically in non-U.S. and high yield
  instruments.

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STAFF RETIREMENT PLAN

• Fund Structure
• Inflation Sensitive Sector
• Two private equity, real estate managers.
• One publicly-traded REIT (real estate investment
  trust) manager.
• One commodity index futures manager.
• One internally managed U. S. Treasury Inflation
  Protection Securities portfolio.

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STAFF RETIREMENT PLAN

• Fund Custody
• The Northern Trust Company is the Banks Global
  custodian for Retirement Plan Assets.
• Services provided
• Plan and investment accounting.
• Performance Analysis.
• Guideline Violation Alert system.
• Online account review system.
• Securities Lending.

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STAFF RETIREMENT PLAN Fourth Quarter 2000
Returns are annualized, before the deduction of
fees.
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Risk Management

• Market Risk
• Credit/Concentration Risk
• Operational Risk
• Legal Risk
• Liquidity Risk

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IDB RETIREMENT PLANS
March 15, 2001 AFP Association of Chile and FIAP