Ministry of Finance announces state funds will include stocks and corporate bonds

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LONDON. -  The International Finance Coordinator for the Ministry of Finance, Eric Farrado announced today that Chile has begun to diversify the portfolios of two state-owned investment funds containing more than $17 billion U.S. dollars, by incorporating stocks and bonds.

The change will reduce the country’s current investments in money market financial instruments.

“We are moving towards a new strategy”, Farrando stated at a conference on sovereign funds in London.

Farrado maintained that by the end of the year, 15% of both portfolios belonging to the Pension Reserve Fund and Stabilization Fund will be invested in stocks, while 20% will be devoted to corporate bonds.

The Pension Reserve Fund currently has assets valued at approximately $1.6 billion USD, while the Stabilization Fund is valued at some $15.5 billion USD.

Currently, 30% of the funds are invested in money market financial instruments, while the rest of the portfolio is devoted to sovereign bonds.