UNCONSOLIDATED STRUCTURED ENTITIES

12 Months Ended

Dec. 31, 2022

Disclosure of unconsolidated structured entities [abstract]

Disclosure of unconsolidated structured entities [text block]

NOTE 32 – UNCONSOLIDATED STRUCTURED ENTITIES

The term "unconsolidated structured entities" refers to all structured entities that are not controlled by Grupo Aval. Grupo Aval enters into transactions with unconsolidated structured entities in the normal course of business to facilitate customer transactions and for specific investment opportunities.

The table below shows the total assets of unconsolidated structured entities in which Grupo Aval had an interest at the reporting date and its maximum exposure to loss in relation to those interests:

Nature and risks associated with Grupo Aval’s interests in unconsolidated structured entities

	Grupo		Investment funds
	Aval’s managed		managed by
December 31, 2022	Investment funds		other entities (Nexus)		Total
Grupo Aval’s interest-assets
Investments at fair value through profit or loss	Ps.	4,427,288	Ps.	1,602,297	Ps.	6,029,585
Other account receivables		29,862		—		29,862
Total assets in relation to Grupo Aval’s interests in the unconsolidated structured entities		4,457,150		1,602,297		6,059,447
Grupo Aval’s maximum exposure (*)	Ps.	4,457,150	Ps.	1,602,297	Ps.	6,059,447

(*) Represent 2.05%, respectively of the Grupo Aval’s managed funds total assets.

	Grupo		Investment funds
	Aval’s managed		managed by
December 31, 2021	Investment funds		other entities (Nexus)		Total
Grupo Aval’s interest-assets
Investments at fair value through profit or loss	Ps.	3,883,313	Ps.	1,136,358	Ps.	5,019,671
Other account receivables		29,567		—		29,567
Total assets in relation to Grupo Aval’s interests in the unconsolidated structured entities		3,912,880		1,136,358		5,049,238
Grupo Aval’s maximum exposure (*)	Ps.	3,912,880	Ps.	1,136,358	Ps.	5,049,238

(*) Represent 1.37%, respectively of the Grupo Aval’s managed funds total assets.

In the normal course of operations, Grupo Aval has trust companies that manage collective investment funds and assets of third parties where the managing trustees receive commissions. Additionally, Grupo Aval’s subsidiary Fondo de Pensiones y Cesantias Porvenir manages mandatory pension funds and defined contribution plans. For management services provided by Porvenir, commissions received vary according to the performance of each fund or asset managed.

The obligations of these entities in the administration of these assets are obligations of means and do not guarantee the results. The maximum exposure risk of loss is determined by the possible failures in the administration of the funds by the amount of the returns that manages and the return of the results of assets the clients.