“The recovery in profitability of multi-fund investments has occurred in the face of various crises such as the invasion of Iraq (2003), subprime (2008) and the COVID-19 pandemic,” the AFP association said in a release.
Through a statement issued by AFP Association, The agency said that the pension scheme “He overcame some complicated situations” And the current crisis the sector is experiencing is no exception.
“In the face of various crises, the profitability of multi-fund investments has recovered. Experience has shown that this occurs even when the return on investment has fallen in value,” the text begins. .
The letter talks about the difficult times Chile and the rest of the world have gone through, creating a context that has also caused economic consequences.
Examples of this are the pandemic, the war in Ukraine and, finally, inflation and declining global economic activity.
“Our country suffers from instability and uncertainty affecting local economic actors. Nevertheless, the history of multi-funds shows that pension funds recover through crises,” said AFP. the association said.
“Pension funds have to be evaluated over the long term. The data show that over a long period of time, all funds are back in the positive,” he says. Robert Fuentes research manager Life.
Pension fund managers, on the other hand, were alleged to have invested 1% of their reserves.This translates to some $1.6 billion, for “Corresponding with the minimum profit”.
AFP Association for Funds Exchange
“In the midst of turbulence, i.e., multi-fund billionaire losses, a hasty change of funds can cause a decline that is difficult to recover from,” the agency said.
“As long as the product remains in the fund’s portfolio, even if it falls in value, it has a chance to recover.
They went on to say, “Pension funds are long-term investment vehicles. For this reason, the ultimate balance of management must be done over the long term.”
“As of September 30, 2022, in the last 12 months only Fund E has shown substantially positive results. concludes.