Profitability of AFP funds would close the year in positive

According to the latest figures from the Superintendency of Banking, Insurance and AFP (SBS), private pension funds have returns of between 1.03% and 24.43% measured at 1 year; while considering the 3-year yield, it ranges between 2.89% and 7.54%.

Taking into account the trend and with a view to the end of the year, Gino Bettocchi, vice president of investments AFP IntegraHe pointed out that the profitability of the funds will remain positive. “We are already close to the end of the year. We would say that returns should close the year in line with what we are seeing. We do still have a positive forward outlook when it comes to risky international markets. In fact we are going to see episodes of volatility, but not as strong as COVID-19. Although we believe that the return line or path should be similar to what we see now ”, he explained.

For its part, Jean Pierre Fournier, investment manager of AFP Integra, explained that international factors are the ones that have the greatest impact on the profitability of affiliate funds, either due to the economic growth of developed countries or due to the expansionary policy decisions of the main banks central, such as the US Fed.

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In that sense, Bettocchi explained that precisely the progressive rise in the reference rates of the central banks of different countries is impacting the performance of fund 1, which is generally managed by fixed income. “Fixed income grew well above expectations. And now that the rate level is normalizing, going forward it is expected that returns in fixed income will be more moderate than what was seen previously, “he noted.

AFP profits

Aldo Ferrini, general manager of AFP Integra, He explained that it will also be a positive year for the profits of the AFPs, despite withdrawals of pension funds.

“In 2020 there was a significant slowdown. Due to the rebound effect of last year, there will be an increase of 10% to 15% in income and a recovery of profits compared to last year, ”he said.

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Withdrawal of funds

More than S / 66,000 million were withdrawn from private pension funds in the 18 months that this exceptional measure was allowed to give more liquidity to families in the context of the health crisis due to the COVID-19 pandemic. This represented a third of the total funds managed by the AFPs.

The word

Aldo Ferrini, managing director of AFP Integra

“It has been a very busy year, especially due to the elections in Peru, but despite that the results of the funds are quite good, at least in two of the three funds.”