1FOCUS22April2019ChileanMonitor:ForeignholdingsofpublicdebtincreaseBreakingupAUMvariationsintoflowsandperformancecomponentsAssetsundermanagement(AUM)ofChileanprivatepensionfunds(AFPs)increasedCLP3.0trn(USD4.9bn)toCLP141.7trn(USD208.5bn)inMarch.TheincreasewasledbyastrongperformanceinalltypesoffundsmanagedbyAFPs(seeFig.1-2).TounderstandtheAUMvariationwithinAFPs,weseparatedthelatestavailableAUMdatabyflowsandperformance.Whenlookingatflows,allocationsintomoreconservativefundscontinuedlastmonth.ThebiggestinflowwasintoTypeEfunds(mostconservativefunds),whilethebiggestoutflowwasfromTypeAfunds(riskiestfunds),inlinewithouranalysis(SeeChileanPensionFunds:bigplayer;watchitclosely).Thus,wefoundthatTypeEfundflowsarenegativelycorrelatedtoTypeAfundflows.FlowsaccountedforCLP0.3trnofthetotalincreaseinAUMduringthemonth.Furthermore,flowswerenotvolatileasusualandwereresponsiblefor~CLP200bnmonthly(seeFig.4).LATINAMERICASTRATEGYPleaserefertoimportantinformationattheendofthereportFOCUSEMERGINGMARKETS|LATAM22April2019AndreDigiacomoFX&IRLatinAmericaStrategy+551138413445SamuelCastroFX&IRLatinAmericaStrategy+551138413492LucaMaiaFX&IRLatinAmericaStrategy+551138413447BancoBNPParibasBrasilS.A.TMKEYMESSAGESNEW:ThetotalstockofChileandebttitlesincreased2.4%q/qand9.3%y/ytoCLP207trn(USD299bn),accordingtothelatestdata.Foreigninvestorsrecordedthebiggestchangeduringthemonth;theirholdingsofChileanpublicdebtincreasedby20.9%y/ytoCLP50trn(USD72.0bnor24.1%oftotal).Assetsundermanagement(AUM)ofAFPsincreasedCLP3.0trn(USD4.9bn)toCLP141.7trn(USD208.5bn).TheincreasewasledbyastrongperformanceinalltypesoffundsmanagedbyAFPs.Themostconservativefundsnowcomprise16.4%ofAFPsAUM,anincreaseof2ppy/y.Despitehigherallocationinmoreconservativefunds,AFPsforeignholdingsroseinalltypesoffunds,accordingtoourportfoliobreakdown.Infixedincome,thebiggestchangeinMarchwasintimedeposits,whichdecreasedby5.7%(USD0.5bn),whileTreasuryinstrumentsincreased3%(USD1.1bn).Whileholdingsoflocalequitiesdecreased3.3%m/m(USD0.7bn),thoseofforeignequities...
