During the past year, the profitability of three of the four funds managed by the AFPs dragged losses that affected only their affiliates.
On the other side of the coin, the administrators continued to receive strong income, to the point that their profits exceeded S/471 million, 13% higher than what was seen in 2020, according to the Superintendency of Banking, Insurance and AFP (SBS).
However, just at the close of the first semester of the current a full recovery is observed in all fundswhich receive the savings of just over 9 million active affiliates.
In detail, Fund 0 — the only one that obtained positive figures in 2022 and that brings together those who are about to retire — registered an accumulated nominal return as of June of 7.27%.
While Fund 1, designed for affiliates over 60 years of age, had a yield of 12.30%.
9 million affiliates is the number of contributors within the AFP’s. Photo: diffusion
Fund 2, created for young and middle-aged affiliates (45 to 60 years old), reported a positive performance of 6.07% at the end of June; and, for its part, Fund 3 —which presents the greatest volatility— was the one with the lowest nominal return, with 0.76%.
For Arturo García, professor of Finance at ESAN Graduate School of Business, the recovery of the financial markets influenced the improvement of the annualized nominal profitability of the pension funds in the Peruvian market.
Only funds 2 (-0.47%) and 3 (-0.92%) are close to recovering what was lost in 2022.
AFPs always win
The four administrators obtained a profit of S/248 million 367.000 during June of this year, which represents a growth of 12.4% compared to the same period of 2022, when the net profit was S/220 million 911,000.
Garcia explains that the profits from the AFP They are supported by an increase of S/40.6 million in the other income item, which is made up of profit from the legal reserve and financial income, thanks to the recovery of the financial markets since the last quarter of 2022.
According to the financial statements of the AFPs, it is detailed that for the concept of commissions paid by affiliates they received S/577 million 378,000 at the end of the first half of 2023, 4.1% less than the first six months of the previous year, a period in which income of S/602 million was obtained.
By company, Prima AFP reported a net profit of S/94 million 842,000, 22.54% more than in the first half of 2022, when it registered S/77 million 394,000.
Finally, Profuturo earned S/65 million 082,000 and AFP Integra had a profit of S/64 million 558,000, while AFP Habitat obtained profits of S/23 million 885,000.
Managed portfolio fell 8.9%
As of June 2023, the portfolio managed by the AFPs amounted to S/111,603 million, a decrease of 8.9% compared to the same month last year, which was S/121,498 million.
According arturo garciathis drop is explained by the withdrawal of up to 4 UIT from pension funds, which was authorized in May 2022.
Most of the managed portfolio of the AFPs is in Fund 2, with S/74,008 million, followed by Fund 1, with S/17,989 million. Meanwhile, S/14,283 million was reported in Fund 3 and Fund 0, which is recommended for people older than 65 years, S/5,322 million was registered.
The numbers
- Prima AFP’s profit grew 22.5% in the first half of the year, it was the AFP that earned the most.
- 6.07% is the nominal return to June of Fund 2.
Infographic – The Republic
Source: Larepublica
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