Private pension funds post 12.5% ROE

Peru's private pension fund managers, AFPs, saw an estimated return on equity (ROE) of 12.5% in 2002, local daily Gestion quoted AFP Integra investment and finance director Jorge Ramos as saying. Last year's good results are attributable to a healthier domestic economy and the fact that most AFP funds were invested on the local market, Ramos said, adding the projections for 1Q03 are also very promising. "This level of profitability is difficult to obtain in any part of the world," he said. "It is not only a good return based on local standards, but internationally as well." Stricter risk control as a result of the region's financial crisis also helped AFPs' bottom line, Ramos added. Looking ahead to this year, he mentioned the need to approve legislation creating multiple investment categories that AFPs could offer affiliates.