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.
"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
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.
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....
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.