Chile Pension Reserve Fund
|Chile||US$ 5.9 Billion|
Transparency Rating: 10
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Firm Investment Style: Index
Entity Structure: Fund
Population Est.: 17.2 million – 2013
Wealth Per Capita Est.: $343
The Pension Reserve Fund (PRF) was established on December 28, 2006 with an initial contribution of US$ 604.5 million.
It was set up in response to Chile’s new demographic scenario characterized by an increase in life expectancy and the growth of senior citizen population, adding on yet another challenge for the Government in terms of greater future retirement expenditures and the need to guarantee basic solidarity pensions to those who were not able to save enough for their retirement.
|Strategy & Objectives
The aim of the Pension Reserve Fund is to address an expected future government pension liability shortfall. As a Savings Fund, it takes a longer-term view and has the responsibility of enabling a transfer of wealth from one generation to the next for the purpose of future sustainability. This means it has a higher risk profile and can invest in a broader range of asset classes.
*The Chilean sovereign wealth funds were historically aggregated into one profile.