Costa Rica News – Pension funds have undergone a huge change in just one year. They have doubled the amount they invest abroad.
The figure jumped from ¢94,000 million last May to ¢182,300 million this May.
The various pension fund operators surveyed listed reasons for investing the money abroad. The most pressing reason was that Costa Rica is perceived as at risk by international rating agencies, based on deterioration in the fiscal deficit.
The ratings are better abroad, as is the return. There is a real annual return of 0.5 percent abroad. On top of that, there is the idea that variety of investments leads to greater security.
The main idea is that operators are looking to improve performance and diversify risks.
The Costa Rica Social Security Fund and the administrator if Disability, Old Age, and Death have also begun discussing investing abroad.
