by Lucien Chauvin
Room to Expand
Peru’s pension system is growing exponentially, leaving managers scrambling for investment options. Infrastructure investments, foreign assets and a deeper equity market may help.
Assets under management in the Peruvian pension system have
almost doubled in the last three years and could increase by
another 67% over the next two years as the middle class swells
on the back of the country’s recent economic boom
and fears over newly elected President Ollanta Humala start to
But with limited investment options at home, fund managers are
placing their hopes on infrastructure investments, the new
integrated Andean equity market (MILA) and regulatory changes
that allow them to buy more foreign assets.
Shopping centers are not typically associated with
retirement plans, but Peru’s fast growing retail
sector is one of the best signs for the country’s
private pension funds that they will be seeing significant
changes in the coming years.
The spread of shopping centers is an indicator that
there is a growing middle class, especially in the provinces.
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