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.