Chile’s pension system is undergoing one of the most profound transformations since its creation. The approval of the pension reform and the start of its implementation have ushered in a new stage marked by higher regulatory, operational and technical requirements, in a context also shaped by demographic challenges, increasing life expectancy and growing expectations from individuals regarding their future pensions.
Against this backdrop, AFP Capital has deployed a management approach focused on combining technical excellence, investment discipline and close engagement with members and pensioners, reaffirming its purpose of supporting people in building their long-term financial wellbeing and improving pensions over time.
A structural pillar for pensions
Investment returns are one of the most decisive factors in determining the final level of pensions. At AFP Capital, this conviction translates into a consistent, rigorous and disciplined investment strategy, based on diversification, active risk management and a long-term view of financial markets.
In 2025, this strategy was reflected in outstanding performance: AFP Capital led annual returns under Chile’s multi-fund investment scheme for Funds A, B and C, while also achieving strong results in Funds D and E. This leadership is not the result of a one-off cycle, but rather of a sustained track record that has positioned the company as a benchmark in the industry and the top performer in terms of returns over the past seven years, generating higher accumulated balances and better pension prospects for those who entrust their savings to its management.
Fund management combines traditional financial criteria with the systematic integration of environmental, social and governance (ESG) factors, strengthening portfolio resilience in the face of market volatility, climate-related risks and structural changes in the global economy.
Pension reform
The year 2025 marked a milestone for Chile’s pension system with the approval of the pension reform. For AFP Capital, this process required anticipating capabilities, adapting processes and assembling interdisciplinary teams dedicated to ensuring a rigorous implementation, meeting new regulatory requirements without compromising operational continuity or service quality.
Success depends largely on the quality of [pension reform] implementation
AFP Capital has consistently maintained that any pension reform must be assessed by its real capacity to improve pensions, and that its success depends largely on the quality of its implementation. In long-term savings systems, technical decisions – such as transition periods, the implementation of benefits that increase final pensions, the new investment regime (including glidepath design), the treatment of alternative assets, or benchmark design – can have significant impacts on future returns.
In particular, AFP Capital has expressed its willingness to actively contribute to the design and implementation of the transition towards generational funds, with the conviction that they can strengthen the long-term logic of pension savings. However, for this shift to translate effectively into higher replacement rates, there are still technical aspects of the law’s implementation that need to be improved.
Accordingly, the company has promoted a technical, prudent and constructive approach during this phase, placing its experience at the service of an implementation process that preserves appropriate incentives, fosters competition for better returns and adequately safeguards the retirement savings of millions of members. AFP Capital has been clear in its public statements that advancing towards higher returns and a more sustainable system will only be possible if the technical issues of the ongoing reform are properly addressed, incorporating the insights and contributions of pension fund managers.
In line with the above, from August 2025 to date, AFP Capital has carried out significant work during the first phase of the implementation of system changes, ensuring operational continuity and delivering the new benefits to members and pensioners in a timely and effective manner.
Moreover, AFP Capital – currently serving more than 1.4 million members and pensioners – benefits from the backing and regional experience of its shareholder, SURA Asset Management, the largest pension manager in the region with 25 million clients. This support enables the company to leverage comparative insights from pension systems across the region, advanced management capabilities and a strategic outlook to ensure a well-executed transition.
Innovation and engagement
Building better pensions requires not only strong investment results, but also clear information, pension education and ongoing support. In line with this vision, AFP Capital has strengthened its value proposition for members and pensioners by incorporating tools that facilitate more informed decision-making throughout the entire lifecycle.
AFP Capital has strengthened its value proposition for members and pensioners
One of the most significant milestones was the launch of the Personalised Pension Report (IPP), which presents clear and understandable information on balances, returns, risk profiles and pension projections. This tool aims to simplify the technical complexity of the pension system, enabling individuals to model scenarios and assess savings and retirement options with greater clarity.
This is complemented by specialised advisory services supported by advanced digital tools, pension simulators and hybrid service channels that combine technology, information security and human proximity.
Operational excellence
The scale of regulatory change and rising service expectations have required a strengthening of operational capacity. AFP Capital has maintained high standards of continuity, service quality and claims resolution, underpinned by international ISO 9001 and ISO 10002 certifications, making it the first and only pension fund manager in Chile to hold both certifications, alongside a robust risk management framework.
In recent years, the company has made decisive progress in its digital transformation, expanding the reach of remote and assisted channels, reinforcing cybersecurity and developing solutions based on data analytics and artificial intelligence. Today, the majority of interactions with members and pensioners take place through digital channels, enabling the scaling of service delivery without compromising quality or traceability.
Foundations of trust
Managing pension savings entails a fiduciary mandate of the highest responsibility. In this regard, AFP Capital operates under a solid corporate governance structure, robust control frameworks and an ethical management approach aligned with the highest national and international standards.
Sustainability is understood as a cross-cutting pillar of management – not only in terms of responsible investment, but also in the way the company engages with its stakeholders, including employees, suppliers, communities and the broader environment. This approach reinforces business stability and trust in the system, both essential elements for long-term savings.
Looking ahead
The pension challenge in Chile is structural and long term. Population ageing, discontinuous employment trajectories and new system rules require pension managers with technical expertise, adaptability and a strong service ethos.
AFP Capital faces this stage from a position of strength, with highly skilled teams and a track record that combines consistent results, investment discipline and a commitment to people. Its objective is clear: to continue managing pension savings with excellence, security and a long-term perspective, contributing actively to a more sustainable pension system and to better pensions for Chileans.
