Peru Raises to 32% Limit on Foreign Investments for Pension Funds

By Robert Kozak

LIMA--The Central Reserve Bank of Peru on Friday increased the limit for investing abroad by private pension funds, or AFPs, to 32% from a previous 30%.

The central bank says this represents an about $750 million extra that the AFPs can invest in international markets.

At the end of December, the AFPs had 29.3% of their portfolios invested abroad.

Peru's private pension funds have pressured the government to allow them to invest more abroad.

The previous increase was in September 2010, when the limit was increased to 30% from 28%.

There are four AFPs currently operating, while Chile's Habitat recently won an auction to manage the funds for new entrants in the market for two years.

AFP Horizonte SA (HORIZC1.VL) is owned mainly by Holding Continental and Spain's Banco Bilbao Vizcaya Argentaria SA. (BBVA, BBVA.MC)

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)

-Write to Robert Kozak at [e-mail]