Peru Authorizes Intercorp to Create Private Pension Fund

By Ryan Dube

LIMA, Peru--Peru's government has authorized financial holding company Intercorp Financial Services Inc. (IFS.VL) to create a private pension fund.

The Superintendent of Banking, Insurance and Private Pensions published a resolution Thursday in official gazette El Peruano giving Intercorp the green light to set up private pension fund AFP Interactiva.

The authorization comes as the government is overhauling the private pension system to widen coverage, attract new fund managers and reduce commissions.

Intercorp is the main shareholder of Interbank, which is Peru's fourth largest bank. It also owns insurance company Interseguro, as well as a supermarket chain, among other assets.

Peru currently has four private pension funds, which manage about $35 billion and are important players in the domestic bond and stock markets.

These are AFP Horizonte SA (HORIZC1.VL), which is owned mainly by Holding Continental and Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC); AFP Integra SA (INTEGRC1.VL), owned by Colombia's Grupo de Inversiones Suramericana SA. (GIVSY, GRUPOSURA.BO); AFP Profuturo, whose main shareholder is a unit of Bank of Nova Scotia (BNS, BNS.T); and Prima AFP, controlled by Peru's Credicorp Ltd. (BAP, BAP.VL).

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