The Financial Committee of Sovereign Wealth Funds (FC) met for the last time this year on Friday December 20th to analyze the Sovereign Wealth Funds in the context of updated fiscal projections. Based on the information provided by the Ministry of Finance,
FC members concluded that the Economic and Social Stabilization Fund (ESSF) will undergo larger withdrawals than previously expected during upcoming years. As a result, the FC requested to the Technical Secretariat to analyze the current strategic asset allocation considering the expected withdrawals from said fund in the upcoming years.
In the case of the Pension Reserve Fund (PRF), the FC recommended to continue converging to the new strategic asset allocation of the PRF, that was defined by the Minister of Finance on late 2017. The FC suggested to review the implementation of the investment policy if the expected size of the fund would change in the future.
Finally, FC members analyzed the results of the Sovereign Wealth Funds, their management, and the main composition of their portfolios.
The FC—an external, independent committee—is made up of the following six experienced professionals and experts: Jose De Gregorio (Chairman), Cristian Eyzaguirre (Vice Chair), Ricardo Budinich, Jaime Casassus, Martín Costabal and Paulina Yazigi.