Due to the effect of the coronavirus at the international level and the suggestions of changes by third parties, the Corporation for Research, Study and Development of Social Security (Ciedess, linked to the Chilean Chamber of Construction) reported that in July 2021 there was a total of 389,926 transfers between pension funds (7.0% of total contributors and 3.5% of total affiliates for that month).
According to Ciedess, this figure represents a drop of -19.8% compared to the previous month, and an increase of 34.7% compared to the same month of the previous year.
Likewise, the consulting firm detailed in a bulletin that, of the total transfers, 79% correspond to changes in the same AFP (306,306 transfers), while the remaining 21% were movements to another entity (83,620 transfers).
“Since March 2020, there have been strong fluctuations in the returns of multifunds due to the coronavirus worldwide, which, added to the suggestions for changes by third parties, have led to an increase in fund transfers”, pointed out the study center.
Thus, the amounts transferred in July amounted to $ 7,042,904 million, equivalent to 5.0% of the pension funds managed in that month.
Affiliates choose Fund A
According to Ciedess, the fund with the highest number of net transfers (additions minus withdrawals) in July was A, with 59,086 net additions; while fund E registered the opposite case, with -139,997 net movements.
On the other hand, the results of funds B, C and D amounted to 44,542, 37,968 and -1,599 net transfers, respectively.
Between January and July 2021, the fund with the highest number of net transfers is C, with 372,164 net additions; while fund E registers the opposite case, with a net of -439,037 movements. In turn, the results of funds A, B and D were 61,421, 23,213 and -17,761 net transfers respectively.
AFP Capital leads the preferences
According to Ciedess, in July 2021 the AFP that presented the highest number of net transfers (more incorporations than withdrawals due to transfers) was Capital, with 8,003 affiliates respectively; while the inverse case is shown by One, with -15,639 net transfers, being the highest numbers of inflows and outflows for both AFPs respectively.
For its part, the panorama of the last 12 months shows that Uno is the AFP with the best balance, with 37,135 net transfers; while Modelo shows the reverse scenario, with -89,387 net outflows.