Chile’s pension funds join global gold ETP rush

Chilean pension funds have been given the go-ahead by the country’s financial regulator to invest in gold exchange traded products for the first time. The relaxation is part of a brace of reforms in Latin America, alongside Brazil’s decision to allow cross listings of overseas exchange traded funds in the form of depositary receipts, that could help breathe new life into the region’s stuttering ETF industry.

Meeting decarbonization goals by 2050 would add $31bn to Chile’s economy

Last April, the Government presented to the UN Climate Change the update of the Nationally Determined Contributions (NDC) to comply with the Paris Agreement, where the main goal is to reduce emissions until achieving carbon neutrality by 2050. In this context, the World Bank prepared a study to analyze the macroeconomic effects of the implementation of the decarbonization plan, which concludes that meeting the goal will allow Chile to increase the level of potential Gross Domestic Product (GDP) by 4.4%, which would mean adding $31 billion to the economy.

AquaChile seeks financial restructure after $245 mn capital increase

AquaChile has called an extraordinary shareholders meeting for 29 October to vote on a $245 million capital increase and to realign the financial structure to incorporate companies acquired in 2018. Chile’s salmon sector saw significant consolidation in 2018, with national food giant Agrosuper buying 67% of AquaChile in an $850 million deal. The same day that deal was announced, AquaChile acquired Salmones Magallanes and Pesquera Eden for $255 million.

Government and ChileVamos evaluate proposal for new distribution of 6%

The Government worked hard to shape the guidelines for the pension reform project being discussed in the Senate's working committee. The design on which work is being done would originate from ChileVamos as a counter-proposal to the proposals presented by the opposition towards the end of July. The distribution of the 6% additional contribution is being considered: allocating 2% to individual accounts, 2% to savings and 2% to insurance. The latter would include longevity coverage, with the aim of ensuring the pension of those who survive the most in the mortality tables.

Chilean market analysts maintain 5.5% drop in GDP forecast for 2020

Chilean financial analysts are maintaining their forecast of a 5.5% drop in gross domestic product (GDP) for 2020, reported by the Central Bank of Chile. According to the bank's Economic Expectations Survey, analysts continue to expect the economy to recover with 4.5% growth in 2021 and 3% increase in 2022, as forecast in September's survey. Regarding the Monetary Policy Rate, the survey projected it will remain at 0.5% over the next 17 months, then rise to 0.75%.