Uruguay's AFAP assets grow by strong double digits in year ended July

Assets managed by Uruguay's four private pension funds (AFAPs) hit 213bn pesos (US$10.0bn) as of July 31, up 19% compared to the same time in 2012, according to figures from the central bank. AFAP's investment portfolios are heavily tilted to government-backed securities. This has allowed them to weather the latest turmoil in global stock markets. However, the AFAPs posted an average annual gross return on their funds of only 0.73% in the 12 months through July, down from 2.91% in the previous 12-month period, the figures show. State-owned República AFAP remained the largest player, managing 56% of total assets at the end-July. AFAP Sura, owned by Colombian holding Grupo Sura, came in second with 18%. Brazil's Itaú Unibanco (NYSE: ITUB) and Venezuelan state-owned development bank Bandes control the remaining two AFAPs, Unión Capital and Integración, with market shares of 17% and 9%, respectively.