The Research Department of the Chilean Association of AFPs published Multifunds Newsletters Nos. 49 and 50, in November 2015 and January 2016, respectively (only the Spanish version). Below is a brief overview of both of them.

Multifunds Newsletter No. 49 – November 2015

This newsletter highlights the following facts:

1. In October 2015, all the funds obtained nominal positive returns, completely reversing the drop in September.

2. The multifunds have obtained an annual average return of 8.9% from 2002 to date.

3. More than half of the fund is in Chile where there is a preference for domestic fixed income instruments, whereas foreign invest is mostly in equities.

4. The United States is the foreign market to which most resources have been allocated, 15.8% of the total. US shares returned 17.1% in pesos by October.

5. In the January-October 2015 period, the riskiest A Fund achieved returns of 8.3%, and the most conservative E fund, 4.9%.

Multifunds Newsletter No. 50 – January 2016

This newsletter highlights the following facts:

1. The five types of pension funds closed 2015 with positive returns, achieving a nominal average annual rate of 6.4%, with figures higher than the Global Equity Index (MSCI World nominal local currency), despite the severe turbulence that affected economies and capital markets, especially in the last few months.

2. The accumulated funds of members who began contributing to the AFPs in 1981 comprise a total of 26% in contributions, and the remaining 74% in return earnings. Thus, the AFP system has fulfilled its task of transforming savings into available funds for pensions, obtaining annual average returns of UF + 8.6% in 34 years, and an annual average nominal return of 8.8% since the beginning of the Multifunds (Sept. 2002) to date.

3. To December 2015, the fund accumulated the equivalent of USD 154,711 million, belonging to the 9.9 million members enrolled in the System. As a result of the returns during the year, the savings of workers increased by USD 9,102 million. Foreign equities were the instruments that most contributed to the positive result.