The Financial Committee (FC) met for the first time this year on Friday, March 12th, 2021. On this opportunity, the FC received a delegation from the Central Bank of Chile (CBC), headed by the Manager of the Financial Markets Division. The CBC reported the performance in 2020 and main positions in the Pension Reserve Fund (PRF) and the Economic and Social Stabilization Fund (ESSF). Additionally, CBC presented a chronology of the most relevant activities carried out by the Fiscal Agent in relation to the Sovereign Wealth Funds during 2020, and an update of the main developments in international reserves. The Committee thanked the CBC for its presentation and the work carried out.
Subsequently, the consulting firm RVK, Inc. presented an update of the study of the ESSF’s investment policy, which was resumed after the Committee postponed it in order to incorporate better the impact that the current health crisis could have on the financial assets in which the fund would be invested. The consulting firm exhibited a new proposal for the fund’s strategic assets allocation, incorporating the new market assumptions. In this context, the Committee requested to add in the study the optimization results measuring the returns in dollars, along with other methodological suggestions. RVK will present a new version of its study in April, incorporating comments made by the Committee.
Finally, the members of the Financial Committee analyzed the main results of both Sovereign Wealth Funds and agreed on the pending stages for the preparation of their 2020 Annual Report, which will describe the main activities carried out by the Committee during the past year. This report, in accordance with current legislation, must be delivered to the Minister of Finance and to the Finance Commissions of the Senate and the House of Representatives, as well as to the Special Budget Commission each year during the second half of April.
External and autonomous, the Finance Committee is made up of professional experts with extensive experience: José De Gregorio (president), Cristián Eyzaguirre (vice president), Ricardo Budinich, Jaime Casassus, Martín Costabal and Paulina Yazigi.