In real terms the actual return of pension funds in El Salvador is still negative.
The nominal return in August on Salvadoran pension funds was 3.50%, but because inflation reached 6.82%, the loss of value to contributors savings was 3.32%.
The cause of this is ascribed to the inability of pension fund managers of to invest in assets other than those specified securities issued by the Salvadoran state, which supposedly are low risk, but which pay very low interest rates . "The Law of Pension Savings System (SAP) does not allow pension funds, made up with savings of contributors to the system, to be invested abroad."
Business Magazine América Economía presented its 2009 ranking for the industry, along with an analysis of its key aspects.
América Economía's 2009 Pension Fund Administrator ranking lists the top 100 Latin American operators. Three are from Central America: Confía and Crecer from El Salvador, 46th and 50th, and Costa Rica's "Popular Pensiones", in the 96th position.
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