Frequently Asked Questions

Both funds have different and specific objectives. On one hand, the purpose of the PRF is to complement the financing of fiscal obligations derived from de Universal Guaranteed Pension, the basic solidarity disability pension and the solidarity disability pension contribution.

On the other hand, the ESSF was created to maintain a steady level of government revenue, funding fiscal deficits that may occur in periods of low growth and/or low copper price. This helps to reduce fluctuations in fiscal spending across the economic cycle.


Both funds were created through the Fiscal Responsibility Law of 2006, which established the regulations and institutional framework for the accumulation, management and operation of the fiscal savings generated from the application of the structural balance rule.

The PRF received its first contribution of US$ 604.5 million on December 28, 2006. The ESSF was initially funded on March 6, 2007 with US$ 2.580 million, of which US$ 2.563 million came from the Copper Revenue Compensation Fund


Based on the Fiscal Responsibility Law, contributions for the funds come from fiscal surpluses, which are very dependent on the price of copper and economic growth. However, the PRF must receive a minimum contribution of 0.2% of GDP of the preceding year regardless of the effective fiscal revenues, and up to a maximum of 0.5% of GDP of the preceding year. Notwithstanding the above, the PRF may be funded from other Treasury’s assets or from the ESSF itself.

The ESSF could receive deposits each year where there is a fiscal surplus. It receives the resulting positive balance from the difference between the fiscal surplus and the contributions to the PRF. Also the ESSF could receive contributions come from sovereign debt, previews, or others authorized by law.


The PRF must receive an annual minimum amount equal to 0.2% of the previous year’s GDP. If the effective fiscal surplus exceeds that amount, the contributions can be increased up to the amount of the surplus, with up to a maximum of 0.5% of the previous year’s GDP. Yearly deposits into the fund should only be made until the fund’s size reaches 900 UF (inflation adjusted currency units). The law also includes the possibility of making extraordinary deposits from the ESSF.

The ESSF receives each year the remainder of the effective fiscal surplus after payment to the PRF. Repayments of public debt (including recognition bonds) and advanced payments to the ESSF during the previous year may, however, be subtracted from this contribution.

Payments to the PRF must be made during the first half of the year. Payments to the ESSF must be made before the end of the year. Notwithstanding the above, payments to the ESSF may be made in advance, anticipating future required contributions.


In accordance with decrees in force, the Minister of Finance can commend the management of the funds to the Central Bank of Chile, as well as External Managers, in compliance with investment guidelines established by the Ministry of Finance.

Currently, all the resources of the ESSF are managed by the Central Bank of Chile. In the case of the PRF, the Central Bank of Chile manages the part of the fund that is invested in sovereign fixed income and the rest of the resources are managed by private institutions.

Each asset class in which the funds are externally managed is entrusted to two different asset managers. This is done with the view to diversifying and being able to compare between them.  In the case of Corporate Bonds, it is managed solely by UBS Asset Management Inc, following the exit of Credit Suisse in December 2022. High Yield Bonds are managed by Black Rock Institutional Trust Company and Nomura Asset Management. U.S Agency MBS are managed by Western Asset Management Company and BNP Paribas Asset Management. Finally, the equity portfolio is managed by UBS Asset Management Inc. and Mellon Investments Corporation.


The funds are invested according to different guidelines compatible with each fund specific objectives.

The PRF is invested in fixed income instruments issued by sovereign issuers as well as sovereign related entities (multilateral agencies, municipalities, state owned companies, among others) and as a whole they account for 65% of the fund. The PRF is also invested in fixed income issued by private corporations (20% of the fund) and equity (15% of the fund). Fixed income instruments must have an investment grade rating, and the portfolio can only be invested in securities that are part of the corresponding benchmarks. The PRF’s strategic asset allocation would be gradually adjusted according to its new investment policy approved in November of 2017, based on the Financial Committee’s recommendations. The new strategic asset allocation is the following: 23% in fixed income instrument issued by sovereign issuers and sovereign related entities, 5% in Inflation linked bonds, 13% in corporate bonds, 40% equity, 6% in US Agency MBS, 8% in High Yield Bonds, and finally 5% in Real Estate.

According to the current investment policy, the majority of the ESSF is invested in sovereign fixed income (92.5%), of which 77.5% is invested in sovereign instruments issued by the U.S., Germany, Japan and Switzerland, and 15% in banking deposits in institutions with a credit rating of at least A-. The remaining 7.5% is invested in equities.


The ESSF resources can be used at any time with a view to supplementing the funds necessary to finance the public expenditure in case of fiscal deficit. In addition, it could be used for the amortization, regular or extraordinary, of public debt and also for funding the PRF when the Minister of Finance decides so.

Law N°21.419, which created the Universal Guaranteed Pension, modified in January 2022 the PRF withdrawal rule established in the Fiscal Responsability Law. Thus, as of 2022, the amount of PRF resources that may be used annually must be less than or equal to 0.1% if the previous year's GDP.

Withdrawals and contributions from the ESSF and the PRF are formalized by Ministry of finance decrees.


The Financial Committee (FC) is an external independent body. Its purpose is to advise the Minister of Finance at his request in all matters related to the investment of both the PRF and the ESSF.


Article 13 of the Fiscal Responsibility Law provides for the existence of a Financial Committee to advise the Minister of Finance when deciding how fiscal assets are invested.


The Financial Committee currently is composed of a team of professionals with extensive experience in the areas of finance and economics:







Current Members Position Incorporation Date Departure   Date
José De Gregorio Rebeco President sept-14 -
Cristián Eyzaguirre Johnston Counselor mar-10 -
Vice-President sept-11
Jaime Casassus Vargas Counselor sept-14 -
Ricardo Budinich Diez Counselor aug-16 -
Martín Costabal Llona Counselor aug-07 -
Paulina Yazigui Salamanca Counselor aug-18 -
Past Members
Igal Magendzo Weinberger Counselor sept-14 aug-18
Eduardo Walker Hitschfeld Counselor aug-07 aug-16
Arturo Cifuentes Ovalle Counselor aug-11 aug-14
President jan-14
Rodrigo Valdés Pulido Counselor feb-14 apr-14
Eric Parrado Herrera Counselor aug-11 mar-14
Klaus Schmidt-Hebbel Dunker Counselor sept-09 jan-14
President aug-11
Andrés Bianchi Larre President aug-07 aug-11
Ana María Jul Lagomarsino Vice-President aug-07 aug-11
Andrés Sanfuentes Vergara Counselor aug-07 mar-10
Oscar Landerretche Moreno Counselor aug-07 jun-09

Committee meetings are held regularly and constitute the primary opportunity for the Committee to discuss and analyze its recommendations to the Finance Minister. Before each session, the FC’s Technical Secretariat sends to the Committee’s Chair and Vice Chair a proposal of the main topics that will be discussed in the next meeting. The agenda is defined based on the feedback received. The Technical Secretariat is responsible for presenting each point of the agenda and third parties may be invited if a more specialized opinion is needed. The presentation and any background information is provided in advance of each meeting. The results and main positioning of the sovereign funds’ portfolios are reviewed in each session. In addition, other topics may be discussed such as possible modifications to the investment policies or implementation status of these policies. Also, the Committee meets with each of the asset managers responsible for investing the sovereign wealth funds at least once a year. Once the session is over, the President approves the press release that contains a summary of the meeting. This press release is published in the Ministry of Finance’s website.

Notwithstanding the above, Committee members remain in contact between meetings, and may exchange information and points of view by email. In addition, the Committee has invited experts and financial institutions in order for them to share their point of views and experience.


The decree law creating the Committee establishes a formal requirement for the committee to gather at least once every semester. However, in past years, the committee has been in session more than the minimum required, in order to be able to fully carry out its mission.


The International Finance Coordinator is the Financial Committee’s counterpart and liaison with the Finance Ministry, and also supervises the Sovereign Wealth Funds unit which operates as FC’s Technical Secretariat.


The Minister of Finance established the Sovereign Wealth Funds Unit by resolution in July, 2009. This Unit was set up to support him in the activities related to the investment and management of the funds. This Unit is responsible for supervising the asset managers of the different asset classes, acts as the Technical Secretariat of the Financial Committee, and prepare the monthly, quarterly and annual reports of the Sovereign Wealth funds that inform about the status of the funds to the National Congress and the general public.


The primary functions of the Financial Committee are to provide advice in relation to the long-term investment of the funds, such as defining strategic asset allocation, reviewing the inclusion of new investments, determining adequate benchmarks for the funds, defining allowable limits for active risk, and placing limitations on the types of possible investments; to make specific recommendations to the Finance Minister in relation to: investments, custody, structure and content of reports, bid processes and selection of external managers; and to assist in all areas related to the investment of the funds as requested by the Finance Minister.


The sovereign wealth funds are property of all Chileans. They are a national asset that provides stability in social spending and public investment. Because of this, management of the assets must meet the most rigorous standards for transparency. To guarantee public access to information on the sovereign wealth funds, the Finance Ministry has created this website exclusively for that purpose. This page contains monthly, quarterly and annual reports on the status of the funds, recommendations of the Financial Committee and its annual report, related legislation, and all updated, pertinent information regarding the funds.

Our funds are regarded as one of the most transparent sovereign wealth funds in the world given the high transparency standards that result from our information disclosure policy.  In particular, our funds rank at the highest level of transparency in the “Linaburg-Maduell” index since 2009. This index is prepared by the Sovereign Wealth Fund Institute. Likewise, the Chilean sovereign wealth funds are considered among the most transparent funds in the world by the Peterson Institute for International Economics. In its report entitled "Uneven Progress on Sovereign Wealth Fund Transparency and Accountability", published in October 2016, a new version of the "SWF Scoreboard" was included, which measures the transparency and accountability of the sovereign wealth funds analyzed. On that occasion, the ESSF and the PRF were ranked sixth and seventh out of a total of sixty sovereign wealth funds evaluated, with 91 and 88 points respectively.


The International Working Group (IWG) of the sovereign wealth funds was established to demonstrate to the countries which receive the investments, that these are carried out under strictly economic and financial criteria. That is why, during 2008, the IWG worked on the development of a voluntary set of Generally Accepted Principles and Practices (GAPP) that are based on the following guiding objectives:

Help to maintain the stability of the global financial system, the free movement of capital and investment; comply with all regulations and disclosure requirements in the countries in which they invest; invest on the basis of the economic and financial criteria and under risk and return considerations; and have a transparent corporate governance that provides adequate operational controls, risk management and accountability. The IWG reached an agreement on GAPP’s in Santiago of Chile, September 22th 2008 - called the "Santiago Principles" - and presented them to the International Monetary and Financial Committee (IMFC), the IMF's policy advisory body; in October 2008 in Washington DC.



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