The Central Reserve Bank (BCR) agreed to raise the foreign operating investment limits of the Private Pension Fund Managers (AFPs), in order to diversify their portfolios. Thus, the former investment limit of 46% will increase to 46.5% as of February, and to 47% as of March.

Due to this measure of the issuing authority, the AFPs will have an additional US$500 million to invest in financial instruments in international markets as of March 1.

It is worth mentioning that on January 19, 2018, the four AFPs operating in Peru had invested 44% of their portfolios abroad, below the operating limit set at 46%.

The BCR has been gradually raising the foreign operating limit for the investments of the AFPs since November 2006. At that date, the maximum the AFPs could invest abroad was 10.5% of their portfolios.

Source: https://elcomercio.pe