The multi-funds of pensions register mixed behaviors during June.
As riskier funds lead returns, driven by higher dollar and governor results, the most conservative are hit by interest rate hikes.
According to the Ciedess bulletin, prepared on the basis of data from the Superintendency of Pensions as of June 24, the Fund A and B register increases of 0.92% and 0.54%, respectively; Meanwhile he Fund C presents a variation of -0.63%.
For its part, the most conservative funds obtain negative results of -1.69% on D and -2.11% on E.
Why did this result occur?
According to Ciedess’s analysis, the monthly result of multifunds A and B is mainly explained by for the return on investment in equity instruments, both national and international.
“Despite observing mixed performances in foreign equities, such investments were positively impacted by the rise in the dollar. Markets continue to be affected by the persistent uncertainty regarding the pandemic, where this month in particular the lower mobility restrictions stand out, but the emergence of new, more contagious variants ”, he points out.
In detail, the world index (MSCI World Index) registers a rise of 1.27%; while the Dow Jones and S&P 500 indices obtain results of -0.96% and 1.48%, respectively. In turn, the indices for Europe (MSCI Europe) and Asia (MSCI EM Asia) show mixed results of 0.03% and -1.18% respectively; while the Emerging Markets Index (MSCI EM) presents a variation of -0.64%.
Meanwhile, the The result of the more conservative funds C, D and E, was due to the results of investments in local debt securities, as well as the performance of foreign fixed income instruments.
“It simply came to our notice then rise in interest rates on national fixed income instruments after inflationary pressures and uncertainty regarding a possible withdrawal of 100% of pension funds, negatively impacting conservative funds through capital losses. An increase is observed in the interest rates of the Central Bank bonds at 5 and 10 years, both in pesos and in UF ”, the report states.
So far in 2021
Between January and June there are mixed results for the multifunds.
While funds A and B register gains of 7.11% and 4.17%, respectively; C presents a variation of -1.77%.
The most conservative funds obtained negative results, of -6.87% for D and -9.06% for E.