Colombia removes 30% cap on foreign pension fund investments

The Colombian government has issued Decree 1490, which eliminates the 30% cap on foreign investments for mandatory pension funds. This decision reverses a previous restriction established in April 2026 that limited how much private pension administrators (AFPs) could allocate to international markets.

Minister of Finance Miguel Gómez Martínez stated that the measure aims to protect Colombian workers' savings by allowing for better portfolio profitability and diversification. The Ministry noted that a fixed global limit could reduce the ability to manage risk and liquidity effectively. By removing the cap, administrators can now pursue higher returns in various international markets based on technical criteria rather than geographic restrictions.

The new decree also voids the requirement for administrators to present gradual adjustment plans to the Financial Superintendence of Colombia to comply with the previous limit. Officials emphasized that the change was made to prevent material negative effects on pension savings and that existing oversight and control mechanisms remain in place.