Colombian AFPs add to North American, emerging-markets and Asian equities in November

Colombian AFP pension managers added to North American, emerging-market and Asian equities in November as stocks rallied on hopes that vaccines against COVID-19 will help restore global economic activity.

The buying came as the S&P 500 surged 10.7% amid progress for the vaccines, as well as Joe Biden’s triumph in the US presidential election.

“We project that after a few tough winter months ahead, vaccination strategies should allow for a robust economic recovery next year from Q2 onwards,” Barclays said in a Nov. 27 note to clients.

In all, cross-border funds and ETFs attracted USD 1 billion from the Colombian AFPs in November. Equity funds picked up USD 883 million in assets while fixed-income funds shed USD 53 million.

Cross-border funds and ETFs finished the month with USD 25.1 billion in Colombian pension assets under management.

Jumps in North American, emerging-market and Asian equities

Across categories, North American equity saw the biggest inflows in November, taking in USD 353 million for USD 7.5 billion in total AUM. 

Industrial Select Sector SPDR led inflows among North American equity funds, attracting USD 169 million in November; the fund posted a positive return of 15.9% in the month.

The next-biggest inflows went to emerging-markets-equity funds, which absorbed USD 273 million in November for USD 6.1 billion in total AUM. 

iShares MSCI Emerging Markets gathered the most assets for that category, taking in USD 302 million in November; the fund posted a positive return of 9.2% in the month.

Asian equity funds, meanwhile, picked up USD 185 million to end the month with USD 3.3 billion.

Market leaders

Among top brands, iShares added USD 492 million from the AFPs in November, giving it USD 11.5 billion under management and a 45.8% market share.

Number two Vanguard shed a modest USD 7 million, to end the month with USD 2.5 billion in AUM and a 10% market share.

State Street held onto third place after USD 165 million came in, for USD 2.4 billion in total AUM and a 9.6% market share.