Chilean pension funds saw returns rebound in October as a drop in US yields narrowed losses on massive interest-rate swap positions that have sparked anger from politicians and undermined faith in the system among savers. The E fund — the more conservative one managed by the pension funds — rose 3.2% last month, paring its decline so far in 2026 to 7.6%, according to data released by the industry association. That compares with the 4.9% decline recorded in September.
The supposedly more volatile C and D funds rose 1% and 1.8%, respectively, in October. The latest results offer some relief to the pension funds, known as AFPs, that have come under intense scrutiny after registering billions of dollars in losses earlier this year on bets that US interest rates would decline.
The AFPs were sitting on about $7 billion in mark-to-market losses as of Oct. 20, down from $10.1 billion at the end of September, pension regulator Joaquín Cortez told lawmakers last month. Roberto Fuentes, head of research at the AFP Association, attributed the performance to a decline in long-term interest rates in both Chile and the United States.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing