SovereignWealthFunds.comEconomic and Social Stabilization Fund (FEES), Chile
Economic and Social Stabilization Fund (FEES), Chile: what it invests in
Geography Global
Economic and Social Stabilization Fund (FEES), Chile: how big it is, and on what basis
In US dollars: about USD 3.885B. Reported in US dollars.
Return 2025 7.49% (USD, net)
Economic and Social Stabilization Fund (FEES), Chile: what it publishes
Published 8 · Partly 2 · Not published 0
Our 10 item score. It measures what is public, not how well a fund is run.
At a glance. FEES is Chile's fiscal stabilisation fund, built from copper-era savings and fiscal surpluses. It held USD 3,885.14 million on 31 August 2026, about 1.0 percent of GDP, almost all in liquid sovereign bonds, money market instruments and US agency mortgage bonds. It finances deficits and debt repayment in hard times; since 2007 it has paid out USD 28.3 billion, more than it received. S5 S6 S3 S1
Key points
- Market value of USD 3,885.14 million at 31 August 2026; USD 3,889.06 million at end 2025. S6 S3
- Returned 7.49 percent in US dollars in 2025 and 1.63 percent a year since April 2007. S3 S7
- Strategic mix: 81 percent bills and sovereign bonds, 4 percent inflation-linked bonds, 15 percent US agency MBS. S4
- Contributions since 2007 total USD 27.76 billion and withdrawals USD 28.29 billion. S5
- Net investment gains since inception reached USD 4.41 billion by August 2026. S6
- No flows in or out during 2025 or the first eight months of 2026. S5
- Audited under IFRS each year; the 2025 statements were signed on 12 June 2026. S3
Interesting facts
Mandate and goals
FEES steadies public finances through economic swings and shocks. It can fund fiscal deficits, the yearly Pension Reserve Fund contribution and public debt repayment. S1
- Maximise the fund's value in pesos during financial stress, when issuing debt would be costly. S4
- Stay highly liquid so money is ready when needed. S4
- Review the allocation for higher returns if the fund grows past 5 percent of GDP. S4
- Return target: No return target; benchmark-based with an ex ante tracking error limit of 25 basis points. S4
How it invests
| Industries | Financial services. Sector agnostic S4 |
|---|---|
| Asset classes | Fixed income, Cash and money markets S6 |
| Stages | Public markets S4 |
| Geography | Global. Benchmarks: US Treasuries, euro Aaa and Aa sovereigns 19 percent, Japan 9 percent, China 3 percent S4 |
| Direct / through funds / co-invest | Yes / No / No S4 S3 |
| Managed in house | 84.8 percent S4 S3 |
| Ticket size | Not applicable; the fund buys liquid bonds against benchmarks. S4 |
| External managers | BNP Paribas Asset Management runs the US agency MBS mandate; J.P. Morgan is custodian S3 |
| Co-investment programme | None S3 |
Asset mix: Sovereign bonds 70.9%, US agency MBS 15.2%, Money market 9.9%, Inflation-linked bonds 4.0% (as of 2026-08-31) S6
Past investments
| Year | Investment | Type | Sector | Stage | Amount |
|---|---|---|---|---|---|
| 2007 | Initial capital from the Copper Stabilisation Fund. Fund created with the old copper fund balance; USD 13.1 billion more arrived in 2007. S1 | State asset transfer | Mining and metals | Not stated | USD 2,580M |
| 2009 | Global financial crisis withdrawal. Largest single-year drawdown, funding fiscal stimulus. S5 | State asset transfer | Financial services | Not stated | USD 9,277.7M |
| 2021 | Pandemic withdrawals. USD 4.09 billion in 2020 and USD 6.20 billion in 2021. S5 | State asset transfer | Financial services | Not stated | USD 10,286.8M |
| 2021 | Equity mandate closed. Equities, managed by UBS, were sold by 27 September 2021. S8 | Sale or exit | Multi-sector | Public markets | USD 462.5M (end 2020) |
| 2022 | Refill from fiscal surplus. Largest contribution since 2008. S5 | State asset transfer | Financial services | Not stated | USD 5,997.7M |
| 2023 | US agency MBS mandate. External mandate run by BNP Paribas Asset Management; 5.87 percent a year since start. S8 S3 | Fund commitment | Multi-sector | Credit | USD 592.2M (Aug 2026) |
Case studies
Using the buffer in two crises S5 S8
- What: FEES paid out USD 9.28B in 2009 and USD 10.29B in 2020 and 2021, then was refilled with USD 6.0B in 2022.
- When: 2009 to 2022
- Size: USD 19.6B paid out
- Why: Fund deficits without costly borrowing when revenue falls.
- Outcome: Value fell from USD 12.2B at the start of 2020 to USD 2.46B at end 2021.
Adding mortgage bonds for yield S8 S7 S4
- What: Equities ended in 2021; a 15 percent US agency MBS sleeve was added in November 2023 under an external manager.
- When: 2021 to 2026
- Size: USD 592M
- Why: Raise expected return while keeping the fund liquid.
- Outcome: MBS returned 5.87 percent a year to August 2026.
Investment process
The Minister of Finance sets objectives, limits and risk rules, advised by the Financial Committee. The Central Bank executes as fiscal agent; the Treasury keeps the accounts and DIPRES handles budget matters. S3
| Committee | Role |
|---|---|
| Financial Committee | Advises the Minister on both sovereign funds S10 |
| Sovereign Funds Unit | Technical secretariat in the Ministry S3 |
- The Ministry sets the strategic allocation and benchmarks. S4
- The Central Bank invests sovereign assets and hires external managers by tender. S4 S3
- J.P. Morgan holds the assets and calculates returns. S3
- Monthly, quarterly and audited annual reports are published. S3
How to approach: No intake route; managers are hired by the Central Bank through tenders. S1
Size and returns
- Headline size: USD 3,885.14M (Fair value of state company holdings, as of 2026-08-31) S5 S6
- In US dollars: about USD 3.885B. Reported in US dollars.
- Audited total assets, end 2025: USD 3,932.1M (Total assets (balance sheet), as of 2025-12-31) S3
- Return, 2025: 7.49 percent (net of costs; minus 1.28 percent in pesos) S3
- Return, 3 years to August 2026: 3.08 percent a year S7
- Return, Since April 2007: 1.63 percent a year S7
- Staff: No dedicated staff; the Ministry's Sovereign Funds Unit and the Central Bank run it S3
- Size over time (USD million): 2020 8,955.24, 2021 2,457.2, 2022 7,514.18, 2023 6,030.11, 2024 3,618.2, 2025 3,889.06 S8
Leadership
| Name | Title | Since |
|---|---|---|
| Jorge Quiroz | Minister of Finance S3 | Not published |
| María Eugenia Wagner Brizzi | Chair, Financial Committee S10 S3 | 2026-01 |
| Jennifer Soto Urra | Vice Chair, Financial Committee S10 | 2022-08 |
| Marco Morales Sepúlveda | Member, Financial Committee S10 | 2024-09 |
| Pablo García Silva | Member, Financial Committee S10 | 2024-09 |
| Gabriela Gurovich Camhi | Member, Financial Committee S10 | 2025-03 |
| Mauricio Larraín Errázuriz | Member, Financial Committee S10 | 2025-08 |
Governance and transparency
- Legal basis: Fiscal Responsibility Law (Law 20.128 of 2006) and DFL 1 of 2006 S3
- Oversight: Ministry of Finance, advised by the Financial Committee; reports to Congress S3
- Auditor: HLB Surlatina Chile (FY2025, IFRS) S3
- Not an IFSWF member; publishes a Santiago Principles self-assessment every two years. S2 S3
- Reports in Spanish and English since 2008. S3
Transparency score: 9.0 of 10 (band 5 of 5). Our own 10-item rubric; see the methodology page.
History
| Date | Event |
|---|---|
| 1987 | Copper Compensation Fund created. S9 |
| 2007-03-06 | FEES created with USD 2,580M. S1 |
| 2009 | USD 9.28B withdrawn. S5 |
| 2021-09-27 | Equity mandate ends. S8 |
| 2022 | USD 6.0B contributed. S5 |
| 2023-11-02 | US agency MBS mandate starts. S8 |
| 2026-01 | María Eugenia Wagner named Financial Committee chair. S3 |
| 2026-08-31 | Market value USD 3,885.14M. S6 |
For family offices
FEES holds only liquid sovereign bonds, money market instruments and agency MBS, with no private assets or co-investments. Its value lies in its open reporting on reserve-style portfolio design. S6 S3
Reports
- Sovereign Funds Annual Report 2025: https://www.hacienda.cl/areas-de-trabajo/finanzas-internacionales/fondos-soberanos/fondo-de-estabilizacion-economica-y-social/informe-anual/informe-anual-fondos-soberanos-2025 S3
- Monthly report, August 2026: https://www.hacienda.cl/areas-de-trabajo/finanzas-internacionales/fondos-soberanos/fondo-de-estabilizacion-economica-y-social/informes-mensuales/informe-agosto-2026/pdf S6
- Returns page: https://www.hacienda.cl/areas-de-trabajo/finanzas-internacionales/fondos-soberanos/fondo-de-estabilizacion-economica-y-social/informacion-financiera/rentabilidad S7
Common questions
Is FEES a copper fund?
It began by absorbing the Copper Stabilisation Fund but is now funded by fiscal surpluses under Law 20.128. S1
How big is it?
USD 3,885.14 million on 31 August 2026. S6
What does it invest in?
Sovereign bonds, money market instruments, inflation-linked bonds and US agency MBS. S6
Who manages it?
The Ministry of Finance directs it; the Central Bank of Chile manages most assets and BNP Paribas Asset Management runs the MBS mandate. S3
When was money last withdrawn?
In 2024, when USD 2.41 billion was drawn. There were no flows in 2025 or January to August 2026. S5
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- Fiscal Stabilization Fund of Peru Peru · USD 3,214.38M
- Macroeconomic Stabilization Fund of Venezuela Venezuela · USD 3M
- Pension Reserve Fund (Fondo de Reserva de Pensiones) Chile · USD 10.71B
All sovereign wealth funds in Latin America and Caribbean · All stabilisation funds · All funds in Chile
Sources
- S1Ministry of Finance of Chile, FEES (Spanish)
- S2IFSWF, members list
- S3Ministry of Finance of Chile, Sovereign Funds Annual Report 2025 (Spanish)
- S4Ministry of Finance of Chile, FEES investment policy (Spanish)
- S5Ministry of Finance of Chile, FEES market value (Spanish)
- S6Ministry of Finance of Chile, FEES monthly report, August 2026 (Spanish)
- S7Ministry of Finance of Chile, FEES returns (Spanish)
- S8DIPRES, FEES executive report, March 2026 (Spanish)
- S9Wikipedia, Economic and Social Stabilization Fund
- S10Ministry of Finance of Chile, Financial Committee members (Spanish)
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