Peru Pension Funds Enjoy Asset Surge
Peru’s private pension funds have shaken off losses from the global crisis and are now experiencing sustained growth. Assets are projected to double in four years.
by Lucien Chauvin
Perus pension funds (AFPs) managed $25.6 billion at the end of April, up from $23.9 billion at the end of 2009, according to the banking and insurance regulator (SBS). This represents a full recuperation from the lows of the global financial crisis, which helped drag private pension system assets down to $15.6 billion at end-2008.
"We recuperated and are now in a strong period of growth," says Pedro Flecha, president of the Association of Private Pension Funds (APPF). "The international crisis did not affect the financial sector here, but the crisis hurt our economy," he adds.
At $25.6 billion, assets managed by Perus four AFPs are equivalent to 18% of GDP and 75% of internal savings. Flecha says research carried out by the APPF determined that investment by AFPs contributed nearly one point to Perus accumulated GDP growth in the past decade....
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