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Daniel Enskat As part of the sweeping reforms introduced by the Chilean government to improve the nation’s financial system, Chile has allowed its pension funds to increase allocations to overseas portfolios from 70% to 80% in the third quarter of this year.
This move is expected to provide a strong opportunity for international hedge fund managers, according to the latest study by Strategic Insight Global, a global fund management consultancy firm with offices in New York, London, and Hong Kong.
The study, authored by Daniel Enskat, Head of Global Consulting at Strategic Insight, entitled: 'Chile in the Spotlight’, examined the asset gathering opportunities for international fund managers in the region.
"As a result, $68bn out of $148bn in total Chilean pension fund assets have been invested offshore to date, benefiting a range of large and boutique fund managers," stated Enskat, who added, "offshore investing has helped lift Chilean pension assets post-crisis. After a temporary heavy dip during the financial crisis in 2008, Chilean pension assets rebounded in 2009, recovering the previous losses. Since then, they have surpassed their previous record to reach a new all-time high."
Highlights from the study include:
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