PERU - Peru's central bank will probably raise the limit on how much private pension funds can invest abroad to 30% from 28% "very soon," said Alejandro Perez-Reyes, investment manager at Peru's second- largest private pension fund AFP Prima.
Pension funds may also ask Congress to change a law that set the 30% ceiling, Perez-Reyes told reporters in Lima today. The bank today said it increased the limit to 28% from 26% previously, enabling funds to invest another US$500m internationally.
"The bank will raise the limit as soon as we're near the current ceiling," said Perez-Reyes, who oversees $7.8bn.
"We need to diversify our investments, as it's risky to have everything in the same basket."
Peru's four pension funds, which have invested 30% of the total $26bn fund in stocks, are seeking to invest more abroad after the Lima General Index lost 12% since late April.
The pension funds have to date invested 23.6% of their portfolio abroad, mainly in stocks, according to the Andean country's banking regulator.
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