Mon, Oct 24, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Moody’s upgrade points to reopening of the Chilean pension market to Irish UCITS

Wednesday, January 22, 2014
Opalesque Industry Update - It’s been a rocky road for Dublin over the past few years, but last month’s exit from the European Union-International Monetary Fund bailout and last Friday’s welcome news that Moody’s would follow Fitch and S&P by upgrading Irish sovereign debt to investment grade status will help smooth the path for Irish UCITS to get back on the “general investment” list for Chilean pension funds.

In late August 2011, the Chilean Pensions Regulator, the Comisión Clasificadora de Riesgo (the “CCR”), moved Irish UCITS to its Restricted Investments List following the downgrade of Irish sovereign debt to below investment grade status. The CCR rules (Article 15 of CCR Decision No. 32) requires a credit rating for the fund domicile of A by at least two of the three major rating agencies (see Dechert Newsflash, Irish Domiciled UCITS Moved to Restricted Investments Status by Chilean Regulator).

The Chilean pension fund industry is an important market for UCITS and the restriction on investment in Irish UCITS by Chilean pension fund investors was a competitive disadvantage for Irish UCITS.

However, it now looks as if this market will reopen following the upgrade, coupled with a recent modification to the CCR rules which now permit the CCR, in exceptional circumstances, to approve the sovereign rating of a country not meeting the requirements by considering the characteristics that have led to non-compliance.

Dechert understands that members of the CCR had informally stated the CCR was prepared to consider Ireland as a fund jurisdiction meeting the credit requirements once Ireland was rated BBB or greater by all three major credit rating agencies. In these informal statements, the CCR also indicated that the especially robust supervisory capability of the Central Bank of Ireland has been a factor in their willingness to provide Ireland with special consideration.

The Moody’s upgrade means that this condition has now been met and we expect managers of Irish UCITS will now restart their applications to register their UCITS in Chile.

Dechert monitors regulatory and market developments in Chile and more than 80 jurisdictions globally as part of our comprehensive service for supporting the cross-border distribution of investment funds.


Press Release


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa