Although there is some consensus on the inconvenience of this mechanism, the appearance of certain populist enticements could influence the process.
Analysts doubt that President Boluarte will veto the seventh retirement bill
Internal political and governance situations are likely to push the executive into signing a bill that was passed with a large majority and multiparty support.
Global ETFs raked in USD 400 million from Chilean AFPs in February
Active funds fared much worse in the month, with the exception of money-market funds. High-yield products were hit hardest.
Peru discussing a seventh withdrawal of AFP savings
Meanwhile, several plans of consolidating pension schemes and even eliminating the AFPs are also being tossed about.
Chilean AFPs boosted cross-border allocations by USD 1.3 billion in January
Chilean AFP pension managers started the year with a hefty increase in their international exposure. Bond funds attracted the largest net flows.
March could be critical for pension reform in Peru
The government’s announcement on pension reform has been clouded by new bills for a withdrawal of funds from AFPs.
Chilean AFPs finished 2022 with added flows to mutual funds and ETFs
After three straight months of net outflows, the pension managers made purchases of USD 295 million during the month of December.
International bond funds captured Chilean AFP investments in November
Pension funds increased their international debt portfolio by a total of USD 250 million in November 2022. Products specializing in the high-yield segment led subscriptions.
Global bond funds attracted AFP allocations in October
Even though AFPs continue shedding positions in cross-border funds and ETFs, global bond funds took in USD 136 million in new money in October.
Chilean AFPs continued to shed positions in international funds and ETFs in July
Among equity products, redemptions totaled USD 672 million in the month, while fixed-income products lost USD 357 million.