FIAP > Destacados Boletines > The pension funds of FIAP countries have recovered much of their value during the pandemic
7 July, 2020
The pension funds of FIAP countries have recovered much of their value during the pandemic
As we said, and as evidenced in previous crises, drops in the value of the funds do not entail losses. Losses will be effective only for those who must sell their assets to retire, those who are mostly in more conservative funds with less volatility, and those who react hastily to the crisis by opting out of funds with higher risk levels.
This has been demonstrated, once again, with the recovery of the value of the pension funds after their sharp fall in March. The value of the funds in the Latin American region in April, 2020, rose to USD 517,608 million, an increase of 4.4% compared to their value in March, and a loss of 1.3% compared to November, 2019. In other words, the funds have recovered USD 21,598 million of the initially observed devaluation of USD 28,208 million.
Without minimizing or ignoring the depth of this crisis and the uncertainty of its duration, one must rest assured that through the pension funds, members will continue to own the safest assets, whose value should recover when this crisis ends, as occurred in previous crises.
