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- ING Administradora de Fondos de Pensiones y Cesantías S.A.
- Asociación Colombiana de Administradoras de Fondos de Pensiones y de Cesantías
- Administradora de Fondos de Pensiones y Cesantías Protección S.A.
- Horizonte Compañía Administradora de Fondos de Pensiones y Cesantías S.A.
- Skandia Pensiones y Cesantías S.A.
- PORVENIR S.A.
- Citi Colfondos S.A. Pensiones y Cesantías
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Pension | Government/RegulationsResearch Reports
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MeneameColombia's finance ministry has included the creation of a multifund pension system in an upcoming financial reform to diversify pension investments, an official from financial regulator Superfinanciera told BNamericas.
Financial regulator head Augusto Acosta recently said the reform would mainly focus on developing a regulatory framework for capital markets and regulate risk management of investment portfolios
By law, all Colombian workers must be affiliated at a private pension fund manager (AFP) or with the social security system. Today the AFPs only manage one pension fund and must guarantee a minimum return for their affiliates.
The regulator is now fine-tuning a proposal to start a system in which AFPs could offer affiliates a family of three funds with different risk profiles.
The final draft of the reform is yet to be defined and will not be sent to congress this year, the spokesperson said.
"We don't see congress approving the financial reform before 1H07, and therefore multifunds are unlikely to begin operating before 2008," pension fund association Asofondos VP Rodrigo Galarza told BNamericas.
Recent local stock market losses and higher interest rates on treasury bonds called TES hurt AFPs' investment returns in May and June and show the need to develop a multifund scheme, local investment firm Corficolombiana research manager Andrés Restrepo told BNamericas.
Chile was the first Latin American country to create a multifund system in September 2002, with five different fund options. Over the last few years, Mexico and Peru have launched similar systems.
"We believe that developing a multifund system will certainly create value for AFPs but that before legislating, it is important to give AFPs time to set up the right technology and satisfy customers," AFP Colfondos president Jaime Humberto López told BNamericas.
The other five AFPs operating in Colombia are BBVA Horizonte, Porvenir, Protección, Santander and Skandia.
The AFPs managed 36.9tn pesos (US$15.6bn) in assets at end-June.
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