Chile Equity Strategy：Funds Flows Insights~July

Investment Rating - The report does not explicitly state an overall investment rating for the industry but provides individual ratings for specific companies such as Banco Santander (Neutral), Concha y Toro (Buy), and CMPC (Buy) [5][18]. Core Insights - In July, Chilean Institutional Investors, particularly Pension Funds and Mutual Funds, were net buyers of local equities, with net purchases of US$65.3 million and US$34.4 million, respectively [3][4]. - The sectors favored by Pension Funds included Real Estate, Consumer Discretionary, and Materials, with notable investments in Banco Santander, Cencosud, and CMPC [3][5]. - Year-to-date, Pension Funds have net bought US$358 million in Chilean equities, while Mutual Funds have net bought US$339 million [4][5]. Summary by Relevant Sections Pension Funds - Pension Funds had a net buying of US$65.3 million in local equities during July, with total assets under management increasing by 1.7% month-over-month to US$186 billion [3][4]. - The exposure to local equities decreased to 6.4% from 6.6% in June, remaining below the 10-year average of 7.2% [17][18]. - The preferred sectors for Pension Funds were Real Estate, Consumer Discretionary, and Materials, while they were net sellers in the Utilities sector [4][5]. Mutual Funds - Mutual Funds were net buyers of US$34.4 million in local equities during July, with total assets under management reaching US$76 billion, an increase of 2.8% month-over-month [4][14]. - The exposure to local equities remained stable at 2.1%, which is below the 10-year average of 2.7% [17][18]. - The largest inflows for Mutual Funds were seen in Banco Santander, Bci, and Concha y Toro, while outflows were noted in Cencosud and Entel [16][18]. Combined Flows - The largest combined net flows for companies under coverage were in Banco Santander (+US$29.6 million), Concha y Toro (+US$3.7 million), and CMPC (+US$1.8 million) [5][15]. - The largest outflows were recorded for Cenco Malls (-US$1.1 million), Entel (-US$1.3 million), and Parque Arauco (-US$1.7 million) [5][15].