July 14, 2017 / 12:10 AM / a year ago

UPDATE 1-Peru central bank to let pension funds to invest more abroad

(Adds details, context)

LIMA, July 13 (Reuters) - Peru’s central bank said on Thursday that it was raising the foreign investment limit for the country’s private pension funds to 46 percent of assets managed from 44 percent now.

The ceiling will increase to 45 percent on Monday - allowing $444 million additional funds to be invested abroad - and then to 46 percent starting Aug. 17, the bank said in a statement.

The pension funds, known as AFPs in Peru, collectively manage about 145.3 billion soles ($44.5 billion), according to data from the banking regulator updated last week.

Four private pension funds operate in Peru: Banco de Credito’s AFP Prima, Sura’s AFP Integra, Scotiabank’s AFP Profuturo and Habitat’s AFP Habitat.

The central bank said it was raising the limit to encourage AFPs to diversify their investments. The limit has been raised gradually from 10.5 percent in 2006. (Reporting by Teresa Cespedes and Ursula Scollo; Editing by Sandra Maler and Bill Trott)

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