Chile Rewrites the Rules for How Pension Funds Invest
8 Articles
8 Articles
Chile Widens Pension Funds Investment Flexibility in Final Rules
Chile’s pension regulator published the final version of a new investment regime for pension funds, known as AFPs, giving managers greater flexibility over asset allocation and wider performance-deviation bands than in the draft rules published in July.
Finally, the Superintendency of Pensions (SP) published last night the Pension Fund Investment Regime and that will enter into force on April 1, 2027, in the context of the Provident Reform. With this, the and are characterized by grouping the members of the system by age groups. A ... Continue reading "Now by age: Government publishes how the generational funds that will replace the multifunds will be"
The regulator made changes to the standard in initial consultation, such as widening the width of the deviation bands in which AFPs may move at the time of investing, or with respect to the limits for alternative assets. It also establishes a mechanism that provides greater flexibility in exceptional situations.
Limits for alternative assets increased in the first three stages of new generational funds and ranged from 25%
Entity explained that the new system will start operating on April 1, 2027 and contemplates 10 funds organized according to the age of the members, with a risk exposure that will progressively decrease as they approach the retirement age.
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