Investment funds in Chile grew 22% in 12 months, surpassing US$35 billion

RIO DE JANEIRO, BRAZIL – The assets managed by the Chilean mutual fund industry reflect the impact of the rising dollar in the third quarter at the local level.

The vehicles reached a total of US$35.173 billion in assets under management as of September 2021, according to data delivered on Monday by the Chilean Association of Investment Fund Administrators (Acafi).

Read also: Check out our coverage on Chile

Meanwhile, growth in pesos was 2.5%. This figure implies a drop of 3% in dollars with respect to June 2021, which is strongly influenced by the exchange rate, which registered an increase of 11.8% in the quarter. However, this represents an increase of 22% in dollar terms, compared to September 2020 results.

According to the Acafi report, assets under management were spread across 662 different funds, of which 68% corresponded to direct investment funds.

In the third quarter of the year, 33 new investment funds were created, which managed US$325 million.

“It is good news that the industry continues to expand, despite the scenarios of economic uncertainty, which speaks very well of the strength of our industry. Considering the challenging 2022, the investment will be key to the country’s economic recovery, financing the creation, development, growth, and consolidation of all types of businesses and activities, in addition to its consequent contribution to the generation of more and better jobs,” comments Acafi’s president, Luis Alberto Letelier.

ALTERNATIVES LEAD THE WAY

Among the 33 new funds created during the third quarter, there was a strong trend towards the alternative world, focused on private debt and real estate funds, to the detriment of the equity sector, which fell by 17% in total assets under management.

The group of funds that showed the highest percentage growth in assets under management in the quarter is the forestry and agricultural funds, which as of September 2021, managed assets of US$650 million, double that of June 2021.

“What we continue to observe in the industry is a growth of investment in alternative assets, both in Chile and abroad, where investment fund managers have demonstrated significant knowledge. In the face of turbulent market scenarios, this type of asset is attractive for the search for long-term returns. We expect investment in local funds to continue to grow, the incorporation of ESG criteria in investment processes, and a healthy diversification of the portfolios of these funds by type of asset and region,” Letelier said.

With information from Diario Finenciero