Chile_Economic and Social Stabilization Fund_Executive Summary 2014Q1.pdfVIP

ECONOMIC AND SOCIAL STABILIZATION FUND Quarterly Executive Report as of March 2014 1 EXECUTIVE SUMMARY First Quarter 2014 Market Value US$15.7 billions Net Income US$305.3 millions I. Market Value of the Fund 1.98% 1.98% 2.36% 1.12% 3.66% Last 3 Months Year to Date Last 12 Months Last 3 Years (Annualized) Since Inception (Annualized) Returns in dollars1 Source: Ministry of Finance based on information provided by JPMorgan and the Central Bank of Chile 15.0% 74.0% 3.5% 7.5% Portfolio Composition Banking Sovereign Bonds Inflation Indexed Sov. Bonds Equities 1 Returns reported in this document correspond to the Time Weighted Rate of Return (TWR), unless otherwise stated. Returns for periods greater than one year are annualized. For periods of less than one year, the return corresponds to the change during the period. Net returns reported are net of management fees. 2 Table 1: Quarterly change in market value (millions of dollars) Source: Ministry of Finance, based on information provided by JPMorgan Figure 1: Evolution of ESSF market value (millions of dollars) Changes in Market Value 2014 (US$ million) Q2 Q3 Q4 Q1 Starting Market Value 14,754.65 15,207.83 15,559.49 15,419.13 - Contributions 603.39 0.00 0.00 0.00 21,765.71 Withdrawals 0.00 0.00 0.00 0.00 -9,427.71 Accrued Interest 45.87 45.97 49.75 49.79 2,254.77 Capital Gains (Losses) -195.56 306.08 -189.35 256.12 1,141.95 Admin., Custody and Other Costs (b) -0.51 -0.39 -0.76 -0.60 -10.30 Final Market Value 15,207.83 15,559.49 15,419.13 15,724.43 15,724.43 (b) It includes costs associated with consultants and others. Since Inception(a) (a) The ESSF was established by the merger of the fiscal assets saved under Decree Law N° 3.653 (1981) with those of the Copper Income Compensation Fund. The first payment into the new fund was made on M arch 6, 2007. 2013 7 ,1