Peru and Mexico are being forecast as the next Latin American countries to open up to international fund managers. A report by research group Cerulli Associates claims the evolution of the pensions systems in the two countries points to a greater appetite for foreign equities, increasing the need for international managers.
Looking farther afield The pension systems of both Peru and Mexico are one-fund systems, investing only in domestic securities. Cerulli argues that as annual returns on domestic bonds fall short of the 8% to 10% that is required, and as local equities are volatile, international investment will become an “increasingly viable alternative”.
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