PROSPECTS FOR ARGENTINE PENSION FUND INVESTMENT IN REAL ESTATE

In 1993, in line with a series of market-oriented economic reforms, Argentina passed a law allowing the creation of private pension funds. By July 1995, after 11 months in operations, private pension funds had accumulated around $2bn of contributions. Earlier that same year, a law was passed facilitating the securitization of mortgages and the creation of real estate investment funds. Several residential mortgage securitization projects are expected to be completed in 1996. In line with worldwide trends, Argentine pension funds are expected to allocate resources into real estate debt and equity investments. This thesis analyzes the case for Argentine pension fund investment in real estate. In order to do so, it first examines the Argentine economy and capital markets that constitute the investment environment under which pension funds operate. Then it discusses the pension fund industry and regulations that influence managers ' investment decisions, the commercial real estate market, and the prospects for residential mortgage securitization. Building upon this, the last section discusses the potential contribution of real estate debt and equity investment to pensio