How are energy investors positioned?
Investing.com -- JPMorgan reported that pension funds have continued to buy into the rally in Chilean equities, with net purchases reaching a record $334.7 million in April, marking the highest monthly inflow since December 2023. The investment in local stocks by pension funds increased their share of total assets under management (AUM) from 7.6% in March to 7.9% in April, although this is still lower than the levels above 9% observed in 2017.
Banco de Chile was the top pick for pension funds, attracting inflows of $105.9 million, outpacing LATAM Airlines (NYSE:LTM) and Cencosud, which brought in $71.9 million and $33.0 million, respectively. On the other hand, the largest divestments were seen in Entel, Engie Chile, and SQM, with outflows of $9.2 million, $7.4 million, and $3.3 million, respectively.
While pension funds increased their holdings in Chilean equities, Chilean mutual funds took a step back, reversing the positive flow trend of recent months with outflows totaling $6.7 million. Despite this, their exposure to local equities rose to 2.6% in April. Mutual funds showed a preference for Enel (BIT:ENEI) Chile, LATAM Airlines, and Falabella Chile, with inflows of $17.1 million, $13.5 million, and $7.8 million, respectively. Conversely, they sold off significant positions in CMPC, Vapores, and Banco de Chile.
In neighboring Colombia, pension funds reversed the recent trend of outflows, becoming net buyers with investments totaling $25.2 million. However, the Colombian market’s average daily trading volume (ADTV) of $34.9 million remained below its 10-year historical average. Meanwhile, Peruvian pension funds reported AUM of $29.3 billion, with 16.9% invested in local equities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.