Wednesday , April 21 2021

Pension funds in October register their second consecutive month with losses



09 Pension funds

The monthly report on pension supervision, which corresponds to October, found that all leased assets were negative in the tenth month of the year and added assets by US $ 191,273 million.

The most significant losses were recorded by assets A (risk) with a decrease of 3.97% and B (risky) by 3.16%. Fund C recorded a fall of 2.12% in the meantime. Assets D (conservative) recorded a decline of 1.05% and a fund E (more conservative), contracted 0.68%.

These losses are explained by the negative returns on investments in foreign equity instruments and Chilean shares, in addition to their local debt positions.

This is taking into account the decline in the profitability of US MSCI indices (8.99%) and emerging (10.94%) and monthly returns on local IPSA shares (5.78%).

In October, pension funds are adding their second month, followed by losses, as this scenario took place in September.

Regarding profitability, since 2002, when they started with multiparty, A and B reached an average of 6.05% and 5.13%. Fund C's profit was 7.93%; while the most conservative assets are the average of cumulative returns of 4.22% and 4.49%.

This decrease in profitability is also associated with an increase in interest rates on national fixed-income instruments.


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