According to the figures from the Financial Superintendency, on the performance of the mandatory pension and severance funds managed by Porvenir* in terms of profitability, It is observed that between January and November it generated returns of $29 billion, a profitability of 15.9% ea on average (weighted by assets under management).
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Alonso Angel, vice president of Inversiones en Porvenir said that “2024 has been a year of excellent returns, due to the management carried out by the company, which has allowed us to take advantage of the favorable performance of the local and international financial markets, which have benefited from the resilience of the global economy and the reduction in their reference rates, which have been implemented by most central banks throughout the planet”.
This flexibility in financial conditions, which has given impetus to the global economy and has benefited the markets, has been possible due to the decrease in inflation.
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Returns are essential in the construction of pension savings since the balance of the individual savings account is not only made up of the sum of the contributions made by the member and the employer, but also the returns generated by the management of the AFP which, in the long term, reach in some cases up to 70% of the value of the individual account.
According to Angel “In the administration of our members’ resources, the investment regime defined by the Financial Superintendence is complied with, which allows the resources managed in the mandatory pension and severance fund to be invested in different fixed-income and variable-income financial instruments in Colombia. and abroad”. He adds that the management in the administration of resources allowed him to obtain returns between 8.9% and 13.3%, for the accumulation period used by the Superfinanciera for the calculation of Minimum Return.
For its part, as of October, Protección obtained, in the funds it manages for severance pay, mandatory pensions and voluntary pensions, $20.1 billion in returns. Layoffs reached a total of $953,000 million. These returns, which have been paid into the accounts of Protection workers and clients, demonstrate the importance of keeping these resources saved, said the AFP.
The mandatory pension savings managed by Protección reached $18 billion pesos in returns.
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Juan Pablo Espinosa, Vice President of Protection Risks and Finance, said that for example, in the last year the moderate fund has earned 10 points above inflation: 14.74% ea In voluntary savings and investment management, the managed voluntary pension portfolios reached returns of $1.1 trillion.
Finally, Colfondos reported a sustained growth trend in the last 12 months, achieving a nominal net profitability of 17.76% in the Conservative portfolio, 21.76% in the Moderate portfolio, and 25.06% in the Higher Risk portfolio.
Holman Rodríguez Martínez
*The Porvenir company is part of the business group that controls the company Casa Editorial EL TIEMPO, to which Portafolio belongs.
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