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.
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 The old caps of 20 percent in foreign equities and 30 percent in local equities are no longer valid.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.