Colombian AFPs Increase Overseas Investment

Pension funds managed by Colombian AFPs are increasing their investment in foreign countries. This is especially true of the more conservative funds, which stepped up overseas investment by marginally more than 8% in July compared with the previous month.

The distribution of Colombian AFPs investment in foreign funds remained stable in July, although the amounts being invested by fund managers are rising. Conservative funds stepped up investment abroad by 8%, high-risk funds by 5.43% and moderate-risk funds by 4.64%, according to the latest figures released by the Financial Superintendence.

Of Colombian AFPs' total moderate-risk investment abroad (some US$8.616bn), 25.6% is invested in mutual funds and international equity investment funds, about 18.78% in equity index funds, 9.61% in commodity index funds and 3.48% in commodity funds. International balanced funds and bond index funds make up less than 1% of overseas investment.

In July, equity index funds accounted for 35.2% of conservative pension funds' overseas investment, a higher figure than in the previous month when they accounted for 34% of capital invested outside the country. Mutual funds' and international equity investment funds' shares made up 21% of investment, with 10% going to commodity index funds and 6.76% to international money market funds.

High-risk pension funds showed almost the same pattern, with equity index funds accounting for 38.33% of overseas investment, equity investment funds for 24.15% and commodity index funds for 10.9%.

 

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