Fact check: experts and regulations debunk Petro on AFP "capital flight"
A new episode of half-truths, questionable, and even false statements was staged by President Gustavo Petro on his X account. This time, the president pointed to an alleged flight of pension savings abroad by pension fund administrators (AFP).
TL;DR
- President Gustavo Petro claimed pension fund administrators (AFP) are rapidly moving pension savings out of the country, labeling it "capital flight."
- Experts and regulations state that AFP investments abroad are regulated and supervised, aimed at diversifying portfolios and optimizing returns for approximately 20 million Colombians.
- AFP are authorized to invest a significant portion of funds overseas, up to 70% depending on the portfolio type, with all current limits being met.
- The movements of capital abroad are subject to regulatory controls and are not discretionary decisions by administrators.
- While over $2.4 billion has moved abroad in two months, this figure mixes different types of AFP-managed resources, and isolating mandatory pension funds does not show over $2.4 billion leaving in 2026.
- Affiliates accept the management of their assets under existing regulations, with about 75% of members choosing portfolios that allow for significant international investment.