Cenbank raises AFPs investment cap

Peru's central bank has lifted to 9% from 7.5% the offshore investment levels for the country's private pension fund managers, AFPs, local daily El Commercio reported. The central bank board of directors unanimously approved the resolution to extend the AFPs' offshore investment portfolios despite the absence of the monetary authority's chairman Richard Webb and director Daniel Schilowsky, the paper said. AFPs can now invest up to 10% of their assets offshore, dependant on central bank approval. Peru's congress last month approved legislation raising offshore investment caps for the country's pension fund managers from 10% to 20% with the central bank given the responsibility to determine the definitive limit. AFP association chairman Alfonso de los Heros told local press earlier this year that the offshore investment ceiling should be raised to the proposed 20% of total assets in order to provide AFPs with access to new investment alternatives that the local capital market cannot presently provide. De los Heros added that the pension system should not be held to such strict investment limits given that individuals can invest up to 100% of their assets abroad.