AFP Capital is leading the new era of Chilean pensions

Chile's pension system has undergone the most profound changes since its inception. The approval of the pension reforms and the beginning of their implementation has introduced a new stage characterized by high regulatory, operational and technical requirements, in a context that is also influenced by demographic challenges, increasing life expectancy and the increase in expectations for individuals regarding their future pensions.

Against these conditions, AFP Capital has adopted a management approach that focuses on combining technical efficiency, investment discipline and close collaboration with members and pensioners, reaffirming its mission to support people in building their long-term financial health and improving pensions over time.

A pillar of the pension structure
Investment returns are one of the most important factors in determining the final level of annuity. At AFP Capital, this judgment translates into a consistent, robust and disciplined investment strategy, based on diversification, effective risk management and a long-term view of financial markets.

In 2025, this strategy was reflected in outstanding performance: AFP Capital led the annual return under Chile's multi-investment plan 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-time cycle, but rather a continuous record that has positioned the company as the highest in the industry for the past seven years with high profitability. accumulated balances and better pension opportunities for those who entrust their managers with their savings.

The management of the fund includes common financial criteria and a systematic integration of environmental, social and governance (ESG) factors, strengthening the portfolio's 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 in the Chilean pension system with the approval of the pension reform. In the AFP capital, this process requires the expected skills, processes to fix situations and to bring together different disciplinary teams dedicated to ensuring a strong implementation, to meet the new regulatory requirements without affecting the continuity of operations or the quality of the service.

Success depends largely on the quality of [pension reform] implementation

AFP Capital has always maintained that any pension reform must be assessed against its true potential to improve pensions, and that its success is highly dependent on the quality of its implementation. In long-term savings plans, technical decisions – such as transition periods, the implementation of benefits that increase final pensions, a new investment strategy (including the glidepath design), the management of other assets, or the valuation design – can have a significant impact on future returns.

In particular, AFP Capital has expressed its willingness to actively contribute to the design and implementation of the transition to productive funds, confident that they can strengthen the long-term concept of pension savings. However, for this change to be successfully translated into higher rates of change, there are still technical aspects of law enforcement that need to be improved.

Therefore, the company has promoted a technical, intelligent and constructive approach during this phase, putting its knowledge at the service of implementing a process that maintains the right incentives, encourages competition with better returns and adequately protects the retirement savings of millions of members. AFP Capital has made it clear in its public statements that the progress towards higher profits and a more stable system will only happen if the technical problems of the ongoing reforms are properly addressed, including the understanding and contributions of pension fund managers.

In accordance with the above, from August 2025 until now, AFP Capital has carried out important work during the first phase of the implementation of system reforms, ensuring continuity of operations and bringing new benefits to members and pensioners in a timely and efficient manner.

In addition, AFP Capital – currently serving more than 1.4 million members and pensioners – benefits from the support and regional expertise of its shareholder, SURA Asset Management, the largest pension manager in the region with 25 million clients. This support enables the company to leverage comparable knowledge from pension systems across the region, advanced management skills and strategic vision to ensure a successful transition.

Creativity 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 to members and pensioners by integrating tools that help make more informed decisions across the life cycle.

AFP Capital has strengthened its proposition for the number of members and pensioners

One of the most notable milestones is the introduction of the Personalized Pensions Report (IPP), which presents clear and understandable information on balances, returns, risk information and pension rates. This tool aims to simplify the technical complexity of the pension scheme, helping individuals to visualize situations and evaluate savings and retirement options with greater clarity.

This is accompanied by specialized advisory services supported by advanced digital tools, pension actors and hybrid service channels that include technology, information security and human proximity.

Good performance
The rate of regulatory change and increased service expectations require strengthening of operational capabilities. AFP Capital has maintained high standards of continuity, service quality and application resolution, supported by international certifications ISO 9001 and ISO 10002, making it the first and only pension fund manager in Chile to hold both certifications, as well as a strong risk management framework.

In recent years, the company has made significant progress in its digital transformation, expanding the reach of remote and assisted channels, strengthening cybersecurity and developing solutions based on data analysis and artificial intelligence. Today, most interactions with members and pensioners take place through digital channels, allowing for increased service delivery without compromising quality or traceability.

Foundations of trust
Managing pension savings involves a highly responsible fiduciary authority. In this regard, AFP Capital operates under a strong corporate governance framework, strong regulatory frameworks and an ethical management approach in line with the highest national and international standards.

Sustainability is understood as a differentiating management pillar – not only in terms of responsible investment, but also in the way a company interacts with its stakeholders, including employees, suppliers, communities and the wider environment. This approach reinforces stability and business confidence in the system, both key factors for long-term sustainability.

Looking ahead
The pension challenge in Chile is systemic and long-term. An aging population, unsustainable employment patterns and new system regulations require pension managers with technical expertise, adaptability and a strong service ethic.

AFP Capital faces this phase from a position of strength, with highly skilled teams and a track record that combines consistent results, investment discipline and commitment to people. Its objective is clear: to continue to manage pension savings in an admirable way, with security and a long-term perspective, to contribute more to a stable pension system and better pensions for the people of Chile.