The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Sovereign wealth funds: Copper lifts Chile’s reserves

Funds move to more aggressive investment strategies.

Chile is on the verge of implementing a new, less conservative investment programme for its two reserve funds.

In the next month, the ministry of finance is expected to select international consultants that will advise on the investment strategies for the reserve funds, whose income derives from copper sales. Callan Associates, Mercer, Russell Investment Group, Strategic Investment Solutions, Towers Perrin and Wilshire Consulting are the six firms competing for the role.

"We are starting to look for higher returns from our funds," says Eric Parrado, international finance coordinator at the ministry of finance in Chile. "Now, with outsourcing the management of the equity and corporate bond portion of these funds, we are taking the first steps towards optimal asset allocation with a longer investment horizon than our central bank international reserves."

In the past 12 months, in line with rapid growth in copper prices, Chile’s funds have grown to $17 billion from about $3.5 billion. This has encouraged the ministry to explore new investment strategies and move away from traditional central bank investments in liquid, short-duration, high-grade securities required for immediate economic stabilization. So far, the Chileans have outlined plans to move all funds into non-peso investments, with up to 15% going into equities and a further 20% into corporate bonds.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree