Reasons why private funds are analyzing legal actions against decree limiting pension savings investment

TL;DR

Asofondos warns Decree 0369 will harm pension fund profitability and future pension amounts.
The decree limits overseas investments, compromising the principle of diversification.
Restricting foreign investment will lead to lower returns and reduced benefits for workers.
Asofondos states the decree contradicts the fiduciary duty of pension administrators.
The association claims the decree is based on a mistaken diagnosis of AFP investment decisions.
Asofondos believes local market limitations, not excessive foreign investment, hinder growth.
The government's stated goal of financing national investment needs is not the purpose of pension funds.
The General Comptroller's Office has also warned about reduced diversification leading to lower returns and system sustainability issues.
Administrators have six months to present an adjustment plan to the Financial Superintendence.
AFPs are analyzing the decree's scope and considering legal actions and potential conflicts with existing laws.

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