CHILE - Chile's Pension Reserve Fund (PRF) and the Economic and Social Stabilization Fund (ESSF) have returned on average 6.9% since their creation in 2006 to December 2009, ministry of finance Andrés Velasco revealed.
The two sovereign wealth funds generated US$2.8bn additional resources, bringing total assets under management for the two funds to $14.7bn at the end of last year.
Velasco said: "We reached these results through a prudent investment policy that allowed us to achieve returns even during the worst financial crisis since World War Two."
PRF had $43.4bn under management at the end of December and received from the state a contribution of $836.7m over the year, which equates to 0.5% of 2008 Chile's gross domestic product. Such contribution is required by Chilean law.
ESSF reached the end of the year with $11.3bn under management. The fund received no state contribution, but helped to finance the country's fiscal stimulus plan with $9.2bn.
The rest of the increase in value was achieved through returns on investments.
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