Peru AFPs Offered Alternatives

Peru’s local pension fund administrators (AFPs) continue to benefit from the liberalization of the rules governing their investment universe. The country’s banking regulator (SBS) has said it is planning to let them invest directly in alternative investments, such as covered funds, later this year. Since March they have been able to invest in these instruments indirectly. This year, for the first time, the country’s five AFPs have also been allowed to invest in sub-investment grade securities (below BBB-).