Managers expected to win in Chile pension change

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.