Chile accounts for the highest investment levels in investment funds domiciled in Luxembourg.
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According to Israel Cuesta, Senior Business & Relationship Development Manager at Fundsquare, who was an informational source for this article:
Israel Cuesta
Senior Business & Relationship Development Manager (Fundsquare)
If we look at the number of new fund share classes being registered for distribution in Chile, combined with the percentage of Management Companies who internationally distribute these products, of the 100 most important companies, 61% sold their funds in Chile.
"If we look at the number of new fund share classes being registered for distribution in Chile, combined with the percentage of Management Companies who internationally distribute these products, of the 100 most important companies, 61% (end of 2020) sold their funds in Chile. In comparison, Peru represents 32% and comes in second place. Chile exceeds big markets like the US, Brazil, and Mexico. Despite characteristic differences, these larger economies tend to privilege national distribution and protect or favour domestic financial products."
Why is Chile on the front line for such investment?
Chile has a population of 18.8 million people and presents the highest revenue per capita in LATAM; this, combined with a robust and highly developed financial system offers great incentives for foreign funds.
Likewise, since the political and social crisis in 2019, many high-net-worth individuals are looking to invest but seek investment outside of Chile. Investing in foreign domiciled funds serves this purpose. Physically, one does not need to leave the country to be able to invest elsewhere and in other markets.
Read the complete article here (Spanish version)
Diario Financiero, April 2021
