CORRECT:Chile Pension Fund Regulator Limits Investments In Spanish Shares
December 09 2011 - 10:36AM
Dow Jones News
Following Spain's recent sovereign downgrade, Chile's pension
fund risk-classification committee, or CCR, will reduce by half the
investments private pension fund managers can have in
Spanish-listed shares for investment.
Private pension fund managers, known locally as AFPs, are
Chile's biggest institutional investors and held a consolidated
$132.66 billion at the end of September.
The CCR will also limit investments in the Barcelona, Bilbao,
Madrid and Valencia stock exchanges by Chile's private pension fund
managers.
"With the CCR's disapproval of investments in Spanish-listed
shares, AFPs can invest in those shares by only half as much," said
a spokesman for the committee.
In October, Standard & Poor's Ratings Services downgraded
Spain a notch, to double-A-minus, three steps below the top
triple-A rating. Its outlook is negative.
The move followed Fitch Ratings, which downgraded Spain two
notches to double-A-minus, citing an intensifying euro-zone crisis
and weak economic growth.
AFP Provida SA (PVD, PROVIDA.SN), 51.6% owned by Spanish bank
Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC), managed the
largest portfolio among local pension-fund managers at the end of
September.
AFP Habitat (HABITAT.SN) is Chile's second-biggest AFP, followed
by AFP Capital. Capital was created in 2008 after Dutch banking
group ING Groep NV (ING, INGA.AE) bought Banco Santander SA's (STD,
SAN.MC) AFP Bansander and merged it with its AFP Santa Maria.
-By Anthony Esposito, Dow Jones Newswires; 56-2-715-8929;
anthony.esposito@dowjones.com
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