Colombia Removes Foreign Investment Cap for Pension Funds
Colombia's government revoked before implementation a decree that capped foreign investments by private pension funds at 30%.
The funds manage about 579 trillion pesos ($179 billion), while foreign investments account for roughly 48% of their portfolios, or 278 trillion pesos ($85.8 billion).
The previous rule would have required more than 100 trillion pesos ($30.9 billion) of capital to be repatriated.
The government said removing the cap would give funds greater diversification opportunities, while the previous measure risked causing a sharp appreciation of the peso and artificially increasing domestic asset prices.
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