High inflation is occurring not only in the Chilean market but also internationally —where we’re seeing a decline in the value of the British pound, a rise in the Fed’s interest rate, and a war in Europe— has led to growing uncertainty regarding the coming months, during which investment will affect the performance of both fixed-income and equity markets.

In this context, investor preferences so far this year have shifted, with a increase in investment in alternative assets. Over the past twelve months, assets under management in alternative asset funds have grown by 38.46%. This is primarily due to the type of investment these funds offer, particularly those that invest in real estate assets.

The advantage of alternative real estate funds—compared to fixed-income and equity investments—is that they allow for anti-inflationary strategies, since construction costs and rents are denominated in UF, which protects investors’ purchasing power.

Nationwide, there are now 555 alternative asset investment funds, and 20 new funds have been launched so far this year, demonstrating how this alternative has become one of the most popular options and that the funds are performing well.

By Fernando Galaz, AGF team.