AFP assets up 6% on profits, affiliate increase

Total funds under management at Peruvian pension fund managers, or AFPs, rose 6% in the first quarter to US$8.3bn compared to the same period 2004, local financial daily Gestión reported. Some 30% of the growth in pension assets came from the profitability of the fund managers and 70% from an increase in affiliate contributions, the report said. Total returns on pension investments are expected to grow 5-9% this year according to AFP managers, Gestión reported. Pension returns grew 2% through the first four months of the year due to a strong stock market. Total affiliates increased 2.3% to 3,474,395 at the end of April on the back of an increase in formal employment.