The increase would be made in four installments through January 2015. According to Latin Asset Management estimates, the increase translates directly to an additional USD 195 million in potential cross-border flows per month.
Peru’s AFPs can now invest up to 20% in alternatives
August 15, 2014 by
AFPs can now invest up to 15% of their type 2 moderate portfolios and 20% of their type 3 aggressive portfolios in alternatives, without weighing against the overall equity limit. The previous limit was a scant 3%, and was being fully utilized.
Details of AFP minimum-return proposal nearing release
August 8, 2014 by
The proposal aims to stimulate greater portfolio diversification by AFPs, whose investments are currently concentrated in domestic public debt and local equity, by increasing exposure to foreign assets.
Sura: Afores need to expand foreign investments
July 24, 2014 by
Enrique Solórzano (photo), head of investments at Afore Sura, said that the Siefores representing younger people should adopt the investment models of countries such as Chile and Peru, which allow a higher rate of investment in equity than in bonds, as a means of increasing returns.
Consar expects pension managers to follow Afore Banamex’s model on mandates
July 16, 2014 by
In an interview with Fund Pro Latin America, Carlos Ramirez Fuentes (photo), president of the Consar, said that "Increases in both the contribution rate and the foreign investment limit are important changes to be discussed," adding, "we are concentrating a lot of risk in one basket by leaving 80% of savings in a single country."
Will a state-run Chilean AFP invest like its private peers?
June 27, 2014 by
In theory, investment in certain strategic state enterprises could get priority, along with support for the country’s monetary policies. Fund Pro Latin America investigates the range of possibilities.
CCR loosens diversification rules for funds offered to local AFPs
June 16, 2014 by
The Commission raised the maximum percentage that mutual and closed-end investment fund portfolios can hold in the instruments of a single issuer or group. In so doing, it allows AFPs to purchase funds that are slightly less diversified.
Private-fund investors likely to flock to mutual funds in wake of tax changes
June 11, 2014 by
Local mutual funds, which fall under the Unified Fund Law, will be taxed at 10%, while President Bachelet's (photo) tax reform will strip private investment funds (FIPs) of their 35% exemption from the corporate tax rate. The FIP segment is worth around USD 15 billion.
Panel recommendation on AFP benchmarks could force additional offshore allocations
June 2, 2014 by
A committee of experts is set to opine on how to set minimum-return benchmarks, and also weigh in on the government's proposal to stimulate the outflow of dollars by encouraging additional cross-border exposure on the part of the AFPs.
Most multifamily offices exempt from onerous registration requirements
May 28, 2014 by
It is estimated that multifamily offices manage about USD 3 billion, approximately 10% of the amounts managed by traditional single family offices, belonging to the richest families in Chile.
