By Ryan Dube
LIMA, Peru--Peru's private pension-fund managers would like to
see the Central Reserve Bank of Peru be more aggressive in raising
the limit on how much they can invest abroad.
Earlier this year, the central bank increased the limit that the
private pension funds, known as AFPs, can invest outside Peru to
32% of total assets under management from 30%.
The move was in part aimed at easing appreciation pressures on
Peru's sol, which strengthened 5.4% against the U.S. dollar in
2012.
Central bank President Julio Velarde said recently that there
could be further increases to the limit this year.
The head of Peru's private pension-fund association, Luis
Valdivieso, said that the increase was good, but too "timid."
Mr. Valdivieso said during a news conference on Thursday that he
would like to see further increases, which could improve the
returns on investments and lower risks for pension-fund
holders.
"With more diversification, we have less risks," he said. "There
aren't enough financial instruments for AFPs to invest in
[Peru]."
There are currently four private pension-fund managers in
Peru.
Over the past 10 years, the AFPs' assets under management have
soared as Peru's economy posts strong growth.
The AFPs now manage slightly more than 100 billion soles ($38.79
billion), compared to PEN22.1 billion in 2003 and PEN87.3 billion
in 2010.
"We hope that this trend continues," Mr Valdivieso said.
AFP Horizonte SA (HORIZC1.VL) is owned mainly by Holding
Continental and Spain's Banco Bilbao Vizcaya Argentaria SA. (BBVA,
BBVA.MC)
Of the pension funds, AFP Integra SA (INTEGRC1.VL) is owned by
Colombia's Grupo de Inversiones Suramericana SA. (GIVSY,
GRUPOSURA.BO). AFP Profuturo's main shareholder is a unit of Bank
of Nova Scotia,(BNS, BNS.T) while Prima AFP is controlled by Peru's
Credicorp Ltd. (BAP, BAP.VL).
Chile's Habitat is in the process of running an AFP in Peru.
Write to Ryan Dube at ryan.dube@dowjones.com
