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Peruvian private pension fund manager AFP ProFuturo has become the third AFP to lower commission rates in the last two weeks, local daily Gestión reported.
ProFuturo will offer three separate commission rates for its affiliates, instead of the flat 2.45% rate offered previously. The lowest rate offered by ProFuturo, 1.45%, matches the lowest rate in the industry, will be for those affiliates who sign up for a three-year plan, at 1.45%. Those affiliates who sign up for one year will be charged a rate of 1.85%, and those who do not sign up for any long-term deal will be charged 1.98%.
"With these commissions, we are going to break open the market," ProFuturo's CEO Mariano Paz Soldán was reported as saying.
Last week, two of the other four private pension fund managers in Peru, AFP Integra and AFP Horizonte, also lowered their rates. Integra lowered its rate to 1.8% for all affiliates, while Horizonte announced a 1.45% rate for those affiliates that sign up for a three-year plan and 1.95% for all others.
The newest player in the industry AFP Prima opened for business on August 8 with a 1.50% rate.
Peru's other private pension fund manager, AFP Unión Vida, charges a rate of 2.27%.