Undersecretary of Social Security, Christian Larraín, said the pension reform would likely limit the role of these managers, but hopes remain.
In May, AFPs cut back their international allocations
The largest redemptions were in the high-yield bond segment, totaling USD 309 million, followed by funds specializing in European equities with USD 161 million.
Fifth withdrawal fails, clearing path for deeper pension reforms
Separately, the government presented a constitutional reform to protect individuals' accumulated pension assets against expropriation.
Chilean AFPs favored international fixed-income funds in April
Bond funds received placements totaling USD 320 million, with funds specializing in emerging markets outperforming.
AFPs soured on international equities in March
Funds specializing in equities in both the Asian and European markets sustained the heaviest redemptions, losing USD 859 million and USD 686 million, respectively.
Emerging-equity products were the choice for Chilean AFPs in February
By product type, ETFs received a total of USD 982 million in net subscriptions, while active funds shed USD 251 million.
Peru’s economy ministry warns about further weakening AFP system
The Congress is still pining for an additional withdrawal that could be approved in the second quarter of 2022.
Not dead yet: Chilean Congress still pushing for fifth pension withdrawal
Seven withdrawal bills will begin to be processed in the next few days, some for 10% and others for 100%. The executive is urging patience.
In election month, Chile’s AFPs increased their liquid positions
In December, Chilean AFPs dismantled USD 1.6 billion of their positions in cross-border funds and ETFs. The equities segment suffered most from the redemptions.
Chilean AFPs showed strong bias for passive vehicles in January
ETFs received the largest portion of subscriptions, totaling USD 870 million, while redemptions were USD 834 million from active funds and USD 615 million from money-market funds.