The research puts total AuM for the four administradoras de fondos de pensiones (AFP\/Afore) systems at $574bn at the close of 2019. Including Brazil\u2019s complementary pension system, which also had a positive year, total regional AuM stands at $1.05trn.<\/p>\n\n\n\n
Flows into the AFP\/Afore pension managers in Chile, Mexico, Colombia, and Peru reflect a gradual upward trend that mimics increasing formality in labor markets and higher salaries. The inflows are also among the most reliable in Latin America.<\/p>\n\n\n\n
While cross-border mutual funds were the clear winners in 2019\u2014adding $11.7bn in total allocations to end the year at $87bn\u2014exchange-traded funds (ETFs) are steadily accumulating assets.\u201d<\/p>\n\n\n\n
\u201cContributions into AFP\/Afore systems of Mexico, Colombia, Chile, and Peru are obligatory and deducted directly from worker paychecks,\u201d according to Thomas Ciampi, director of Latin Asset Management, Cerulli\u2019s Latin American research partner.<\/p>\n\n\n\n
\u201cFor cross-border managers, they represent opportunity for strategic expansion.\u201d While cross-border mutual funds were the clear winners in 2019\u2014adding $11.7bn in total allocations to end the year at $87bn\u2014exchange-traded funds (ETFs) are steadily accumulating assets. At year end, assets gained more than $8bn from the year before. The research projects demand in cross-border securities to remain strong, with gains of 12%-13%, compared to 8% for domestic vehicles. By 2024, the securities could reach 21% of the industry total.<\/p>\n\n\n\n
Latin American private pensions fuel cross-border demand: report<\/p>","protected":false},"author":4,"featured_media":877,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[],"class_list":["post-876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n