The Sovereign Wealth Funds are a cornerstone of the fiscal policy implemented by the Chilean Government. Their objectives are to contribute to macroeconomic stability and to provide public goods with a view to bestowing better opportunities and improving social protection for Chileans. Thus, the Pension Reserve Fund (PRF), established at the end of 2006, seeks to provide financing related to fiscal pension obligations aimed at assisting the poor, while the Economic and Social Stabilization Fund (ESSF), created at the beginning of 2007, seeks to provide funding to cover fiscal deficits and/or pay back public debt.
The institutional framework provides an adequate environment for the funds’ management. Pursuant to what is permitted under law, the Minister delegated their management to the Central Bank of Chile, given the Bank’s experience and reputation in managing Chile’s international reserves. Furthermore, a Financial Committee was set up by the Minister for the purpose of advising him on the design of an investment policy for the funds.
The sovereign wealth funds are the property of all Chileans. They are a national asset that guarantees stability in social spending and future public investment. As such, the funds are managed according to the most stringent transparency standards. Access to relevant information on the sovereign wealth funds is guaranteed to the public through different means of communications, including this website. Chile’s policy on public access to information earned it eighth place among 34 countries with sovereign funds that were evaluated for best practices by the Peterson Institute for International Economics in 2008.
At the same time, the Chilean Government has actively participated in the international debate surrounding best practices for sovereign wealth funds. Accordingly, Chile is a member of the International Work Group of Sovereign Wealth Funds that agreed on a series of principles and practices—the Santiago Principles—at its meeting in Santiago in 2008.