A PFR2 tsunami and the market’s sink-or-swim moment

Local investment professionals reject the criticism that they are too conservative. The debate over changes to the pension fund rules, has been raging for years and at times accusations have been traded between the regulators and the investment professionals managing billions of Pula on behalf of the pension funds.

Known formally as the Pension Fund Rule 2 or PFR 2, the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) statute previously required pension funds to invest at least 30% of their assets locally. By May, that figure equalled P38.2 billion.