The nominal return in August on Salvadoran pension funds was 3.50%, but because inflation reached 6.82%, the loss of value to contributors savings was 3.32%.
The cause of this is ascribed to the inability of pension fund managers of to invest in assets other than those specified securities issued by the Salvadoran state, which supposedly are low risk, but which pay very low interest rates . "The Law of Pension Savings System (SAP) does not allow pension funds, made up with savings of contributors to the system, to be invested abroad."
Referring to a bill currently under consideration in the Legislature, the Superintendent of Financial System, Victor Ramirez, said: "In the case of El Salvador, it says that pension funds be placed in low risk sovereign securities, with returns that are not very high but at least better than the titles that are traded here." The SSF expects that the adoption of the law the AFP will give them new options for investing their members money and that this will led to improved performance. "
Source: laprensagrafica.com
More on this topic
February 2010
The Securities Commission (Sugeval), is preparing regulation to enable venture capital funds to conduct public offerings.
In Costa Rica there are several venture capital funds, but they are private and cannot perform public offerings. The regulation to allow them to do it could be ready in a couple of weeks.
July 2010
This fund would consolidate all the shares owned by the State of Panama in several companies.
The government of Panama has requested proposals on how to organize this fund to three investment banks: Merrill Lynch, J.P. Morgan and Macquarie Capital.
“Panama’s Finance Ministry reported that this proposal is being analyzed, and explained that the fund will be state-owned, as it would be made of assets owed by the State of Panama”, reported Prensa.com. “Authorities are also considering administering the fund through a holding company”.
January 2012
Aldesa introduced an investment fund made up of $100 shares to finance the Ad Astra Rocket Company, which is developing a plasma engine for space travel.
A press release by Aldesa states that the fund, entitled “the Aurora Fund”, will be administered by INS SAFI investment and will invest in shares of the Ad AstraRocket Company, which was founded and chaired by astronaut Franklin Chang Diaz.
May 2011
Four businesses have acquired part of the investment fund management company .
The sale of this subsidiary of Interbolsa is the latest in the list of changes and restructuring experienced by the Group since 2009, when it closed its money exchange office.
From that point on the company has undergone several changes, from the closure of the stock exchange office in April 2010 to the liquidation of its office in Panama, which operated under the company name IB International.
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