Managers expected to win in Chile pension change
By Drew Carter | June 7, 2011 2:22 pm
Boutique institutional firms as well as large money managers stand to benefit from flows from pension funds in Chile as restrictions on domestic investments are eased, according to a new study by Strategic Insight Global.
About 46% of Chile’s $148 billion in pension assets already is invested internationally, according to the study, “Spotlight on Latin America: Chile as Cross-Border and DC Retirement Market.” In the third quarter of 2011, restrictions on overseas investments — now at 70% of an account that can be invested outside Chile — will be eased to 80%.
“The offshore growth has benefited a number of international fund managers … both the ‘Davids’ and ‘Goliaths’ of fund management,” according to the study.
Large managers such as Fidelity Investments, BlackRock (BLK) and Franklin Templeton (BEN) run $8.7 billion, $5.9 billion and $4.9 billion of Chilean pension assets, respectively, while boutiques such as La Compagnie Financiere Edmond de Rothschild and Van Eck Associates manage $800 million and $300 million, respectively, according to the study.