SANTIAGO - Over the last two years, competition for the assets of Chilean pension funds has grown fierce among international money management firms. In the two years ended January 31, assets that the country's AFP pension funds have allocated to foreign instruments have expanded from $150 million to $1.8 billion and the outlook is for that number to rise significantly over the next decade. AFP pension funds are privately run pension funds under government supervision.

While their business has undergone important growth here, very few internationally known firms have set up offices. They have found it more convenient to break into this small but potentially substantial pension-fund market through local representatives, consultants, brokers and others with established relationships among the eight remaining AFPs (Administradoras de Fondos de Pensin) in Chile.

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