AFP Horizonte to offer lowest rate in pension industry

Tuesday, August 16, 2005

Peruvian private pension fund manager AFP Horizonte will offer the industry's lowest commission at 1.45%, a company official confirmed.

The rate will be available for those affiliates that sign up for a three-year plan, while those who choose not to sign up for the long-term deal will still see their commissions lowered, but to 1.95%. The new rates will come into effect in October.

Horizonte's previous commission rate was 2.25%, and "was very competitive, but recent announcements have changed the industry," the official told BNamericas.

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Horizonte's plan must be approved by the country's banking and insurance regulator SBS, according to the official.

Last week, pension fund AFP Integra lowered its commission to 1.8% and the industry's newest player AFP Prima opened up for business with a rate of 1.45%.

Peru's other AFP's, ProFuturo and Unión Vida, charge 2.45% and 2.27%, respectively.