GLOBAL - International mutual fund managers will draw significant new investments from Latin American institutional investors over the next five years, thus compensating for continued weakness in the increasingly competitive private investor segment, according to consultants Cerulli Associates.
The report, titled Cross-Border Fund Distribution in Latin America, estimates US$5bn is held in cross border fund assets by Latin American institutions, but Cerulli reckons Latin American pension funds, mutual funds and insurance firms will allocate more than US$50bn by the end of 2007 to international mutual funds. A bit less than half will come from Chile’s AFPs.
The future pensions of Chilean workers will be financed out of a fixed part (10%) of their gross pay, to be individually deposited in investment funds. These funds are managed by private companies known as Asociaciones de Fondos de Pensiones (AFPs), which were specially created for this purpose and are strictly regulated by the State.
Mexico’s AFORE pension managers will likely account for 10% of the total, said Cerulli.
In 1997 a new privatised, government-mandated retirement system came into existence in Mexico. Within this system, private companies called Administradoras de Fondos de Retiro (AFORE) manage pension funds for workers who joined the labour force on or after 1 July, 1997. Each worker chooses an AFORE to receive the 6.5% of wages paid by his/her employer. The government contributes another 5.5%.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.