Summary: International investors were the main buyers of nominal Soberanos in August, buying just over PEN2.1bn and accounting for 82% of all gross inflows during the month. Interestingly, insurers were the second-largest buyers, accounting for most of the remaining 18% of gross inflows. Banks and pension funds were the largest sellers, at a combined PEN1.06bn and accounting for 87% of gross outflows. Public funds made up the remaining 13% of gross outflows. The net issuance of nominals in August amounted to PEN1.35bn (+1.09% MoM). Pension funds reduced duration during the month with holdings being pared in longer-dated tenors into shorter-dated tenors such as 2032s and 2033s, while international investors’ repositioning was more mixed, favouring 2032s, 2035s, and 2040s.
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International investors were the dominant buyers in August, increasing their holdings of Soberanos by PEN2.1bn to a total holding of just under PEN80bn, from PEN77.8bn in July. This was an increase of 2.64% MoM in nominal holdings, relative to market growth of 1.09% MoM. As a result, international investors’ percentage ownership of of total bonds outstanding increased by 0.9pp, and is now c.44.7%, building on the upward trend from a 35.5% low in March 2024.
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Pension funds were net sellers of Soberanos in August, at a net total of PEN0.5bn, taking their holdings from PEN18.3bn to PEN17.9bn. Local pension funds own virtually 10% of the Soberanos market, up from a historical low of 7.8% in September 2024, but still in the 6th percentile historically since 2012 amid persistent withdrawals from the AFP system since 2020; the pre-COVID level was closer to 27% market ownership.
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Local banks were the largest sellers in August, with their holdings falling from PEN56.4bn in July 2025 to PEN55.8bn. Ownership fell to 31.2% of outstanding bonds in August, from 31.8% in July. Overall, local bank holdings have generally been falling and remain well below the June 2024 high of 40.3%. This is a welcome development, as it has been supported by a recovery in the holdings of international investors and local insurance companies.
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Public funds sold roughly PEN0.2bn in August. Holdings fell on a rounded basis to PEN7.05bn in the month, from PEN7.21bn in July, with ownership falling slightly to 3.94% of the total Soberanos market in August, from 4.06% in July.
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Insurance companies were the second-largest buyers in August (after international investors), with their allocation increasing by PEN0.4bn to PEN16.2bn, which drove holdings to 9.05% of the total Soberanos market in August, from 8.87% in July.