||**Table 10:**Investmentfloors by country,August2007|
|---|---|
|**Country**|**Description of investment floor regulations**|
|Argentina|The 2007 pension reform instituted a requirement to invest a minimum of 5 percent and a<br>maximum of 20 percent of the portfolio on debt instruments that support productive or<br>infrastructure projects in Argentina.|
|Costa Rica|Minimum of 15 percent of pension funds must be invested in mortgage securities, with<br>returns of at least the average return of the mandatory complementary pension system.|
|El Salvador|Minimum of 30 percent of pension funds must be invested in securities issued by the Social<br>Housing Fund (_Fondo Nacional de Vivienda_, FSV) in the 1<sup>st</sup>year of the system’s operation,<br>decreasing by 1 or 2 percent per year until reaching 10 percent from the 15<sup>th</sup>year on.|
|Mexico|Minimum of 51 percent of pension funds assets must be invested in inflation-linked or<br>inflation protected securities (only for Basic Fund 1).|
|Uruguay|Pension fundsmustinvest40 to 60 percent oftheirassetsingovernment securities.|
|Sources: SPV|S, SUPEN, El Salvador’s Pension Supervisor, OECD (2006a),_Banco Central del Uruguay_.|

<!-- Start of picture text --> Figure 15: Chile: Investment limits and observed portfolios, 1981-2001 (percent)<br>(a) Domestic (b) Foreign<br>100 20<br>80<br>15<br>60<br>10<br>40<br>20 5<br>0<br>0<br>1980 1983 1986 1989 1992 1995 1998 2001<br>1980 1983 1986 1989 1992 1995 1998 2001<br>Observed, fixed-income Limit,fixed-income<br>Observed, fixed-income Limit,fixed-income<br>Observed, variable income Limit variable income<br>Observed, variable income Limit variable income<br><!-- End of picture text --> Source: Based on data from SAFP and on Berstein and Chumacero (2006a).

**Table 11:** <u>Chile: Average age, wage, balance and size per fund, December 2006</u>

|**Indicator**|||**Fund**|||
|---|---|---|---|---|---|
||**A**|**B**|**C**|**D**|**E**|
|Average age (years)|32|30|44|58|47|
|Average wage (1,000 Pesos)|514|322|345|355|395|
|Average balance (1,000 Pesos)|13,745|3,137|6,311|6,697|10,941|
|Number of affiliates (1,000)|861|3,443|3,320|760|57|
|Numberofactive contributors (1,000)|548|1,462|1,252|176|36|

Source: SAFP.

**Table 12:** Chile: Real annual rate of return per fund, 2002-2006002-20062-2006006 <u>(percent)rcent)cent)nt)t)</u>

The asset allocation of Chilean **Table 12:** Chile: Real annual rate of return per fund, pension funds is consistent with the 2002-2006002-20062-2006006 <u>(percent)rcent)cent)nt)t)</u> **<u>Fund 2002 2003 2004 2005 2006</u>** objectives of multi-fund schemes. The <mark>A 0.68</mark><sup>a</sup> <mark>26.94 12.86 10.71 22.25</mark> risk-return decreases systematically B -0.52<sup>a</sup> 16.02 10.26 7.32 18.83 from Fund A to Fund E (Table 12). As <mark>C 2.98 10.55 8.86 4.58 15.77</mark> of December 2006, Fund A, which was D -1.03<sup>a</sup> 8.94 6.80 2.84 11.46 designed to offer the highest risk-return <mark>E</mark> <u><mark>8.90 3.34 5.44 0.94 7.44</mark></u> Notes:<sup>a</sup> Period October 2002 to December 2002. combination, allocated the largest shares Source: SAFP . of its assets in foreign assets (53.1 percent) and domestic equity (22.2 percent). Fund E, known as the “safe fund,” allocated its assets almost exclusively in domestic fixed-income instruments (99.7 percent). Fund C 27