September 1, 2010
by Taina RosaWhen Colombian pension funds implement a new multi-fund system slated to take off in September, savers will be able to choose between funds that assume a range of risks. They can opt for aggressive, equity-focused investment, or more conservative models mostly buying fixed income.
Fund contributors will make their selection according to age and risk appetite. Since 70% of Colombian workers are under the age of 40 and are widely expected to choose a more aggressive profile, the new structure is expected to create more demand for equity.
"The Colombian population is young, which makes one think that affiliates of pension funds would prefer their investments to be focused more o
Colombian pension funds are set to implement a multi-fund structure that allows savers to calibrate investment by risk appetite. The move should boost AFPs’ investment in equity.