Best Practices in PPP Financing Latin America - e-Institute - World ...

Day 1 - THIRD SESSION
• The development of a capital market in Chile has played
an important role when encouraging financing in public
infrastructure.
• Evaluation is an important factor to be considered in
infrastructure financing. Evaluation of securities 6 must be
accurate and transparent to encourage pension funds to
invest in proper financial instruments.
Colombia
Nowadays Colombia has 9.5 million affiliated persons to
Private Pension Funds, and pension savings are near 19%
of GDP. The main contributors are young people, between
15 and 35 years old. Yet Juan Pablo Arango pointed out
that the system is unable to grow due to informality in the
economy. Nearly 65% of the working population of Colombia
is employed in the informal sector.
Pension funds initially invested in public debt, which nowadays
is only 35%. Currently, the portfolio has diversified in bonds of
financial agencies and demand deposits; however, the greatest
growth is in participative securities (domestic shares) and in
foreign investment. The profitability rate of funds is 11%.
The main change in the pension funds system is the inclusion
of multifunds, including three funds for accumulation stage
and one special fund for scheduled retirement. However,
the Law did not allow for the allocation of the higher risk
fund to those who did not express their choice, representing
a limitation for the development of this plan. Affiliated
members during this accumulation stage that fail to express
their choice are designated to a moderate risk portfolio, except
for those individuals who are about to reach the minimum
pension guarantee age who will gradually be assigned to the
6. The Pensions Superintendece of Chile carries out valuation of Bonds.
- 39 -