Expectations of a drop in inflation and as a consequence of the interest ratesas well as a greater appetite for emerging market assets generated good news for affiliates of private pension funds in the first semester.
And in the case of Colombiathe public debt valuationDue to the perception that investors have about the infeasibility of government initiatives, it also contributed so that the balance of savings belonging to more than 18.9 million workers recorded records, both in its maximum earnings, and in the historical accumulated amount, reaching $381.5 billion.
(Record of worker savings in private pension funds).
Returns recorded in the first six months were $31.8 billion (and in June alone, $10 billionsome); in the last five years they reached $112.9 billion, while historical earnings (28 years) were $259 billion.
For 29 years, pension fund administrators have managed workers’ savingsreporting earnings that, on total savings, weigh almost 70%.
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This is reflected in the figures provided by Asofondosthat brings together the four pension fund administrators (Colfondos, Porvenir, Protección and Skandia).
The affiliates of these administrators, who these days received their quarterly extract, can review it and verify the positive performance that their funds have had, said the union.
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Santiago Montenegro Trujillo, President of Asofondosrecalled that “only the system based on savings and capitalization allows workers to receive significant returns over time, let’s remember that it is a benefit that is only available in pension funds”, and reiterated that, although the short-term results are exceptional, it is important that affiliates always review in their statements the profits that their funds have had in the long term, “excellent performances”.
He added that “In the markets there is a perception of the proper functioning of the democratic institutions in Colombia and of the solidity of the counterweights to the executive power”.
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He assured that in some very specific situations, it was the case of 2022, devaluations occurred, but, as has happened in the past, The management of the AFPs in a favorable environment made it possible to resume the positive and growing path of savings since Januaryas reflected in the extracts that are already reaching affiliates.
The union reiterated its call for in-depth discussions of the pension reform project, with facts and figures at hand, and with a sense of responsibility when deciding whether to opt for a savings scheme, with improvements, that adequately responds to current and future generations; or if, on the contrary, it is reversed, irremediably destroying what has been achieved up to now.
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assured that The results show the superior benefits of a capitalization system over medium premium systems.
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