Multifunds Show Strong July Performance, Driven by International Markets
Santiago, Chile – July 28, 2025 – Multifunds experienced a generally positive July, with higher-risk categories leading teh gains, according to a report by CIEDDESS. The positive trend was largely attributed to the performance of international variable income markets and a strengthening dollar.
Funds categorized as high-risk, types A and B, saw returns of 2.58% and 2.03% respectively by July 27th. the moderate-risk fund, type C, also posted a gain of 0.92%. More conservative funds, types D and E, showed mixed results, with type D gaining 0.04% and type E experiencing a slight decline of -0.27%.
Year-to-Date Gains Reflect Broad Market Strength
Looking at the accumulated performance from January to july 2025, all multifund categories have registered positive returns. Funds A and B have achieved returns of 7.02% and 6.27%, respectively, while type C has seen an increase of 5.79%. funds D and E have also contributed to the positive year-to-date trend, with gains of 4.65% and 3.46%, respectively.Notably,the report highlights that funds B,C,and D are on track to achieve their best accumulated returns for the January-July period as 2019.
Key Drivers of July Performance
The strong performance of funds A and B in July is linked to their investments in variable income instruments. Internationally,major stock indices delivered positive returns,bolstered by a slight appreciation of the dollar. Locally, though, the IPSA index experienced a decline.
The report points to global economic developments as significant influences. Uncertainty surrounding trade wars, marked by tariff escalations and trade agreements between the US and other nations, has been a key factor. Together,Wall Street indices like the S&P 500 and Nasdaq have reached past highs. China’s market has also benefited from economic data exceeding expectations and ongoing trade negotiations with the US.The performance of funds D and E is primarily explained by their investments in local debt and international fixed-income instruments. A decline in international fixed-income assets, with the Legatruu index falling by 0.34%, and an increase in local interest rates for long-term fixed-income instruments, which negatively impacted conservative funds through capital losses, were cited as reasons for their more subdued results.