Afores will be able to invest up to 30% in alternative products. Greater investment in national projects such as energy and infrastructure will be encouraged.
Generational funds could favor alternative assets
The government's proposal on generational funds has gained some consensus in the market and closely aligns with ideas presented by the AFP Association. It also has the potential to unlock greater long-term investment opportunities for pension managers.
AFPs emerge strengthened after enactment of pension reform
Despite the entry of new players, several measures are being considered to increase contributions to the individual accounts of their participants.
Bidding process for participants gains broad support from economists
The mechanism is included in the pension reform but there are a range of proposals on what form it should take.
At the end of July, processing of new pension withdrawals begins
Although there is some consensus on the inconvenience of this mechanism, the appearance of certain populist enticements could influence the process.
Fast-track passage of pension reform could end up in the Constitutional Court
The government has already announced a corrective bill to resolve some shortcomings not analyzed by the House of Representatives.
Bravo Commission 2.0 faces skepticism amidst controversy in pension reform debate
The pension reform remains stalled in the Senate Labor Committee amid intense political negotiations.
Congress approves pension reform
The legislation now goes to the president who could return it to Congress, although he is expected to sign it. The main issues for AFPs are new players, the productivity fee and the end of withdrawals.
Senate passes pension bill and lower house has a deadline of June 20
The bill maintains four pillars and designates Banco de la República as manager of the public pension fund.
Analysts doubt that President Boluarte will veto the seventh retirement bill
Internal political and governance situations are likely to push the executive into signing a bill that was passed with a large majority and multiparty support.