Fynsa
In fixed income, we remain convinced of the merits of UF-indexed strategies, where inflation-linked returns continue to outperform nominal alternatives. In equities, valuations below the 10-year average and the lag in returns relative to Latin America present an opportunity to position oneself ahead of a potential de-escalation of the conflict and the passage of pro-investment reforms promoted by the current government.
In the fixed-income market, we continue to recommend a strategy that is heavily weighted toward the UF index. Meanwhile, we believe that the recent adjustments in the equity market present a good opportunity to position oneself for the remainder of the year.
We believe Chile continues to offer a good entry point toward 2026, with historically attractive real rates, equity valuations below their long-term averages and a discount relative to emerging markets, as well as catalysts that could favor a gradual re-rating of local assets.
Chile continues to offer an attractive risk-return ratio, supported by discounted valuations, attractive real rates and structural catalysts not yet internalized by the market.
The outcome of the plebiscite should have a positive impact on the markets, under the assumption of lower uncertainty and risk premiums in the future due to the expectation of a more moderate new constitution.
