AFP Cuprum President Daniela Zecchetto has warned of a "significant risk" regarding the implementation of Chile's pension reform, specifically concerning the timing of new regulatory rollouts, according to latercera.com.
In a letter to shareholders included in the company's 2025 annual report, Zecchetto highlighted that while the reform includes progress such as increased individual contributions, the final impact depends on execution.
"The bidding of stock requires special attention. Implementing it at an early stage, in parallel with the launch of generational funds, represents a significant risk," Zecchetto stated, according to the report.
She argued that this simultaneous implementation could undermine the technical benefits of the reform by forcing sub-optimal investment decisions and creating operational friction.
Challenges for 2026
Zecchetto noted that while the legislative debate is largely settled, the industry now faces a massive operational challenge. She identified 2026 as a critical year for defining the regulatory and operational aspects that will govern the long-term functioning of the system.
One of the most significant changes involves the introduction of generational funds. Zecchetto claimed Cuprum possesses the most experience and expertise to operate these funds.
"This is a significant advancement, as, if well-designed, they can translate into better returns and, through that, better pensions," Zecchetto said.
However, she cautioned that the success of these funds depends on maintaining space for professional management and the flexibility to capture long-term returns.
Limiting this management capacity, she argued, would reduce efficiency and weaken a primary driver for improving pension payouts.
Zecchetto emphasized that Cuprum is actively participating in this transition, utilizing the international expertise of its controller, Principal, to navigate markets where this model has already been applied.
