CHILE Trends and Developments Contributed by: Felipe Díaz Toro, Victor Riadi and Ignacio Ruiz Rodríguez, EDN Abogados
Investment Funds in Chile: An Introduction The investment fund industry in Chile is influ - enced by several noteworthy trends and devel - opments. Flows and assets under management (AuM) Debt funds There has been a significant shift in net flows towards debt funds. Positive cumulative flows were recorded in 2024, in contrast to outflows in 2023. According to the Chilean Association of Mutual Fund Managers’ 2024 report (the “MMFF 2024 Report”), During November 2024, the mutual fund industry recorded CLPM1,372,614 of net flows [note: CLPM = Chilean Pesos in millions], accumulating CLPM16,583,909 until November of that year, which represents 21% of the average monthly effective assets for the month, which for November 2024 reached CLPM78,056,113. Similarly, flows in series dedicated exclusively to voluntary pension sav - ings (APV) recorded net flows of CLPM19,969 in November 2024, bringing the year-to-date total to CLPM200,411. By the end of November, assets allocated to voluntary pension savings had reached CLPM4,161,101. This growth in flows indicates increasing investor confidence, likely driven by improvements in economic indi - cators. Foreign investment The Central Bank of Chile reported foreign direct investment (FDI) figures for September 2024, which showed that in the first nine months of that year, Chile received a net flow of USD11.76 billion, an amount 5% higher than the average for the January-September period of the last two decades (since 2003). However, between January and September 2024, accumulated FDI reached USD11.76 bil - lion, exceeding by 5% the average of the last 20
years for this period. Meanwhile, a report by the Capital Goods Corporation (CBC) in the second quarter of this year projected that 77% of private investment in Chile by 2028 will come from for - eign companies. In addition, for the first time in history, exports of services in Chile exceeded USD2.5 billion, with an accumulated growth of 18% through November 2024, reaching USD2.518 billion. This milestone reflects progress in diversifying Chile’s export portfolio, highlighting services such as aeronautical maintenance, logistics support, software development, digital anima - tion and specialised consulting in mining and medical sciences. The United States led as the main destination for these services, with USD839 million, followed by Peru (USD436 million) and Colombia (USD185 million), markets that together accounted for 58% of total exports. Product developments Structured funds Structured investment funds have experienced notable growth, with 11 financial institutions now offering 70 different products. The MMFF 2024 Report highlights that these funds cater to low-risk preferences and have seen a steady increase in participation. Their appeal lies in their ability to offer customised risk-return profiles, often incorporating capital protection features tailored to specific investor needs. This growth underscores the demand for financial prod - ucts that provide stability in volatile markets, and demonstrates the industry’s innovation in addressing diverse investor appetites and risk tolerances.
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