Summary: International Investors were the main buyers of nominal Soberanos in October, purchasing just over PEN1.4bn and accounting for 94% of all gross inflows during the month with holdings now at 44.6%. Pension funds ended the monthly largely flat with holdings remaining at around 10.5% despite the recent approval of the 8th pension withdrawal. Overall gross outflows were minimal with local investors selling a total of just PEN135mn. The net issuance of Soberanos in October amounted to PEN1.4bn (+0.74% MoM). Pension funds reallocated away from ’33s and ‘35s to ‘34s and 37s in the belly and continue to boost their holdings of ’37s. International investors mainly reallocated and rebalanced their holdings from short-end and long-end positioning towards the belly of the curve in ‘32s, ‘33s and ‘35s.
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International investors were the main buyers in October, increasing their holdings of Soberanos by PEN1.4bn boosting their holdings to c.PEN81.7bn and representing an increase of 1.75% MoM in nominal holdings relative to the market growth of 0.75% MoM. As a result, international investors’ percentage ownership of total bonds outstanding rose by 0.4pp and now stands at c.44.6% from 44.2% in September.
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Pension funds mainly focused on portfolio reallocation only purchasing PEN 89mn of Soberanos in October, taking their holdings from PEN19.2bn to PEN19.3bn. Local pension funds own virtually 10.5% of the Soberanos market, up from a historical low of 7.8% in September 2024, but still in the ninth percentile historically since 2012 on 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 small sellers in October with a PEN50mn net reduction in their holdings but remaining at roughly PEN56.9bn in October 2025. Ownership slipped slightly to 31.1% from 31.3% of outstanding bonds in October from 31.2% in August. Overall, local bank repositioning along the curve was more an inverse of the repositioning of pension funds and international investors. The reallocation of banks pushed more towards the shorter and longer end of the curve.