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Pension funds allowed greater equity investments
Investment restrictions on pension funds have been loosened, allowing fund administrators to invest up to 40 percent of their assets in local and foreign stock, as well as in private investment funds.
Key details
The changes announced by Colombia’s pension fund regulator on February 18, 2008, allow pension fund administators to:
- Invest up to 40 percent of their assets in equities investments (either local or foreign). The old caps of 20 percent in foreign equities and 30 percent in local equities are no longer valid.
- Allocate up to 5 percent of their assets in private investment funds.
- Devote a portion of their investments to American Depository Receipts, Global Depository Receipts and Exchange Traded Funds provided that the investments are considered investment grade in the country in which the investment fund is located.
March,
2008
The information included in this report is general information only and should not be relied upon without further review by the appropriate professional advisers. Watson Wyatt is not a law firm or an accounting firm and is not engaged in providing legal, accounting or tax services or advice.
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