Chile’s Superintendency of Pensions reported that as of the end of the second quarter, the total value of assets under management of the country’s pension funds reached $190.07 billion, which represents an increase of 13.2% compared to the same period last year.
As of Q2, the funds’ investment in Chilean national assets represented 59.6% of the total assets under management, and were concentrated mainly in fixed income instruments. Meanwhile, foreign investments make up 40.4% of the total assets managed.
The quarterly report gives an overview of the investments of the pension funds, and breaks them down by domestic and international investment. The domestic investments are sorted by instrument, issuer, and transactions, while the international investments are sorted by instrument, issuer, foreign fund manager, geographical area and country, currency, and transactions.
Chilean investments accounted for $113.38 billion of the total assets under management in the second quarter, of which 83.1% was invested in fixed-income instruments. The main issuer of the fixed-income investments was the General Treasury of the Republic, where 32.3% of national investment is concentrated, or 19.3% of the total investment of the pension funds.
During the quarter, pension funds made net purchases of instruments at the national level of $2.16 billion, of which $1.84 billion was in net purchases of fixed income instruments, and $324 million of net purchases was in instruments of variable income.
The Superintendency said the pension funds’ overseas investments reached $76.68 billion as of June. Equities were the main component of the foreign investment portfolio, with a 65.6% share of total assets abroad. The diversification by geographical area in the second quarter of 2017 shows that 32.7% of overseas investment is registered in emerging markets, 63.8% in developed markets, and 3.5% in other areas. Approximately 30.1% of foreign investment is registered in North America. The US remained the main destination country for investments, although its share of total assets decreased to 12% from 13.8%.