Ecuador’s public pension fund is lowering its portfolio risk by limiting government debt purchases and boosting corporate and home lending, Global Pensions reports. The fund, Banco del Instituto Ecuatoriano de Seguridad Social (BIESS), may also begin issuing personal credit cards and start offering tax-deferred retirement savings plans, as per Omar Serrano, the representative for workers on the BIESS’s board.
The BIESS will reduce holdings of government bonds 10% points to 45% of its portfolio, or $3.79 billion, by the end of 2011. The fund, which manages about $6.92 billion for the nation’s Social Security Institute, will increase loans to companies by about 7.4% to $627 million this year and partner with foreign companies in local projects to increase investment guarantees.
Click here for the story from Global Pensions.
