Certain Chile-based retirement plans can invest an additional 3 percentage points each in alternative assets, following a decision to raise investment limits by the country's central bank.
The Banco Central de Chile said Wednesday that four of the five types of retirement plans in Chile — Fondos A, B, C and D, with A being the most risk-taking and D the most conservative — can now invest more in alternatives. The move was announced to help to diversify investments and improve risk/return prospects.
Fondo A may now invest 13% in alternatives, up from the previous limit of 10%, set in 2017. Fondo B's alternatives exposure was increased to 11% from 8%; Fondo C to 9% from 6%; and Fondo D to 6% from 5%.
The investment limit for Fund E, which is very conservative in its investment approach according to the Superintendencia de Pensiones in Chile, was maintained at 5%.
