In recent years, local assets have In recent years, local assets have faced a series of factors that have significantly affected their performance and perception. These include the social outbreak, the pandemic, pension fund withdrawals and the constituent processes, all events that have generated uncertainty and weakened confidence in the local economic environment. This combination of factors has led many investors to seek opportunities outside Chile.

Added to this is the strength of the dollar, the good performance of stock markets in developed markets and the growing interest in long-term global issues -such as artificial intelligence and its economic impact-, which have diverted even more attention abroad. Together, these elements have made local assets less attractive in relative terms compared to other investment alternatives.

However, the current international context, marked by growing uncertainty derived from the announcement of new tariffs and trade barriers by the United States, is leading investors to explore opportunities in other markets.

And this time, Chile has answered the call. The IPSA is at all-time highs, consolidating its position as the fifth best performing stock market worldwide in the last twelve months, with an accumulated return of 26.22% so far this year.. In the fixed-income market, the yield curve has resumed a healthier slope, generating attractive return opportunities in both the short and medium-term tranches, where the term premium has been an outstanding factor. term premium has been an important factor.

This scenario is compounded by the appreciation of the Chilean pesoThe appreciation of the Chilean peso, driven by the rise in copper prices and the global weakness of the dollar, also contributed to this scenario. The decrease in political uncertainty political uncertainty, improved investment projections for theinvestment projections for the next few years and a monetary policy rate that is converging to a higher monetary policy rate gradually converging to its neutral level.. All indications are that local economic activity could gradually begin to recover gradually recovering dynamism..

In this context, the invitation is to to take advantage of the momentum that local assets are showingconsidering their yield potential in the coming months in the face of a more volatile international scenario and a local macroeconomic outlook that shows signs of improvement. This moment represents an opportunity to evaluate a diversified diversified positioningaligned with each investor's risk profile and investment horizon.

DISCLAIMER

Ciro Giraldez

Portfolio Manager Fixed Income Fynsa AGF