"There are not enough securities available to the pension funds in Peru – I think that they should definitely be allowed to diversify further. They need to do what Chile has done and increase the amount they invest in their neighbouring countries," says Walter Molano, head of research at BCP Securities.
The total pension savings pool in Peru is about $20 billion and contributions to the system are growing by 45% a year. This rate of growth is leading to a bubble in the stock market. The Lima stock exchange has surged by more than...
