The report revealed that $68bn out of $148bn in total Chilean pension fund assets have been invested offshore to date and more could follow when rules on the amount of money Chilean pension funds can invest overseas are relaxed later this year.
According to Strategic Insight, Chilean pension fund managers will see the proportion of funds that may be invested overseas rise from 70% to 80% in the third quarter of this year, potentially paving the way for further offshore investments.
Daniel Enskat, head of global consulting at Strategic Insight, said: “Offshore investing has helped lift Chilean pension assets post-crisis. After a temporary dip during the financial crisis in 2008, Chilean pension assets rebounded in 2009, recovering the previous losses. Since then, they surpassed their previous record to reach an all time high.”
The top 10 offshore equity and bond funds in Chilean pension funds as of quarter one of 2011 accounted for 24% and 19% in total offshore assets, respectively, led by Fidelity, Franklin Templeton, JP Morgan, Vanguard, SSgA and Schroders.
The report also showed that five of the top 10 equity funds in Chile have an Asia focus, followed by Latin America as a region, the emerging markets and the US.