Last Friday, June 11, the third session of the Financial Committee was held in 2021. The instance began with an analysis of the costs incurred by the managers of the Pension Reserve Fund concerning the transactions carried out in the third quarter of 2020, period that coincided with the withdrawal made in said fund. Based on the above, the members of the Committee were able to corroborate the low costs incurred by the managers and learn about alternatives that exist in the market to carry out this type of analysis.
Next, Nomura, entity responsible for investing part of the investment portfolio of the Pension Reserve Fund, presented about its organization, investment process, and main results obtained in the High Yield bond mandate during 2020 and the first half of 2021. Nomura also analyzed the markets' current situation, highlighting the Covid-19 pandemic effects. The members of the Financial Committee thanked the presentation and the work done. This meeting is part of the external managers’ annual presentations to the Committee to give an account of their management.
Subsequently, the members of the Committee analyzed the proposal of the Technical Secretariat on a modification of the eligibility criteria of the asset classes Treasury Bills and Sovereign Bonds, both from the Economic and Social Stabilization Fund and the Strategic Contingency Fund. After exchanging opinions, the Committee recommended accepting said proposal, suggesting that an evaluation should be carried out after one year from the beginning of its implementation.
Finally, the members of the Committee analyzed the main results of both Sovereign Funds and the composition of their portfolios concerning their benchmarks.
External and autonomous, the Finance Committee is made up of professional experts with extensive experience: José De Gregorio (president), Cristián Eyzaguirre (vice president), Ricardo Budinich, Jaime Casassus, Martín Costabal and Paulina Yazigi.