Sun, Feb 25, 2018
A A A
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.

Dechert

Press Release

BM

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. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  2. Opalesque Exclusive: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  3. Institutional Investors - Hedge funds regain their appeal for a $57 billion asset manager, Private credit strategies in stratosphere[more]

    Hedge funds regain their appeal for a $57 billion asset manager From Bloomberg.com: With volatility back on the radar, one of the Nordic region's biggest asset managers is considering relying a bit more on hedge funds to help oversee his portfolio. Mikko Mursula, the chief investment off

  4. Investing - All aboard for hedge funds as trade tide lifts shipping, Hedge funds pile into Time Warner in bet on merger success[more]

    All aboard for hedge funds as trade tide lifts shipping From Reuters.com: Forced to abandon ship after mistiming their investments five years ago, hedge funds are venturing back in a bid to profit from growing global trade flows. Around 90 percent of traded goods by volume are tran

  5. Investing - Hedge funds turn short on tech just as stock rally takes off, After biggest short, speculators slash bearish US bond bets as supply deluge looms[more]

    Hedge funds turn short on tech just as stock rally takes off From Newsmax.com: A key group of investors has just missed out on the biggest tech-stock rally since 2014. Hedge funds and other large speculators turned net short on Nasdaq 100 Index futures for the first time in 21 months, ac