The Chilean regulator has approved a wide range of equity and bond funds for investment by the country’s pension funds in its latest report.
The approved list from the Comisión Clasificadora de Riesgo (CCR) included US and Asian equity funds, as well as US and Euro bond funds, and a thematic fund.
The CCR is the regulator which rates and approves the instruments Chile’s six AFP pension giants are able to invest in.
In total 17 mutual funds were approved for inclusion on the CCR’s list in March, two from local asset managers and the rest from international groups. The two local mutual funds are Credicorp Capital Deuda Corporative LatAm Investment Grade and Latam Corporate Investment Grade.
Among the international players, the biggest winner of the inclusion process is Manulife Asset Management who had eight funds approved. The regulator also approved six ETFs, five of which are BlackRock iShares.
The CCR also opened up a new avenue of potential revenue for the AFP’s direct investment team after authorizing stocks that are issued or traded on the Taiwan Stock Exchange.
The mutual funds it has approved are as follow:
|Fund Name||Fund manager|
|AXA Rosenberg US Equity Alpha||N/A|
|HSBC Euro Liquidity||N/A|
|HSBC GIF Global Corporate Bond||Mohamed Siddeeq|
|Manulife American Growth||Emory Sanders (Citywire +)|
|Manulife Asian Equity||Kenglin Tan|
|Manulife Asian Small Cap Equity||Linda Csellak|
|Manulife Dragon Growth||Kai Kong Chay|
|Manulife Global Equity||Paul Boyne|
|Manulife Healthcare||Mindy Perry|
|Manulife India Equity||Marco Giubin|
|Manulife US Bond||Howard Greene (Citywire +)|
|Nordea 1 – US Corporate Bond||Lou Cohen|
|UBAM EM Investment Grade Corporate Bond||Denis Girault|
|UBAM Convertibles Euro 10-40||Jean-Edouard Reymond|
|UBAM Convertibles Europe||Jean-Edouard Reymond|
The ETFs the CCR has approved are as follow:
- iShares MSCI Global Gold Miners ETF
- iShares 0-5 Year High Yield Corporate Bond ETF
- iShares 0-5 Year Investment Grade Corporate Bond ETF
- iShares Edge MSCI Multifactor USA ETF
- iShares Global Consumer Discretionary ETF
- WisdomTree International LargeCap Dividend Fund
The regulator also removed a number of funds from its approved list for failing to meet its inclusion criteria:
- BTG Pactual Global Optimization Fondo de Inversión (falling below $20m in AUM)
- BCI de Negocios Dólar Latam Investment Grade
- Lazard Thematic Global Fund (concentrated ownership)
- Legg Mason QS MV European Equity Growth and Income (falling below $100 million in AUM)
- Pioneer Core European Equity (merged into other strategy)