Chilean pension funds face over $10 billion in investment losses

The Chilean Pension Superintendency has reported that valuation losses from derivative operations across the five pension funds reached more than $10 billion as of September 30, 2026. This updated figure significantly exceeds the previous estimate of $7.718 billion, which only accounted for swap operations conducted with foreign banks. The revised total incorporates transactions made with both foreign and local financial institutions.

León Fernández de Castro, executive president of the Association of Pension Fund Administrators (AFP), testified before the Chamber of Deputies regarding a 10.4% drop in Fund E between January and September. He stated that this loss would not result in an equivalent reduction in pension amounts. Instead, the estimated impact on retirements is projected to be between 0.8% for women and 1.8% for men.

Superintendent of Pensions Joaquín Cortez noted that regulatory warnings regarding the increasing use of interest rate swaps and derivatives began in late 2024.