JPMorgan-Chile Equity Strategy Money Flowing Out of Time Deposits. Ti...-107731686

JPMORGANLatinAmericaEquityResearch21April2024ChileEquityStrategyMoneyFlowingOutofTimeDeposits.TimeforEquities?Atthebeginningoftheyearwehighlightedthatthehighlevelsofshort-termLatAmEquityStrategyJan.2023interestrateshaddrivenallocationtotimedepositstoahistoricalrecord,closetoDiegoCeledonACFeb.2023US$20bnabovethepre-pandemicaverage(linktoournotehere).Whilethisover-Mar.2023allocationwasjustifiedbythe11.25%levelthatthemonetaryinterestratereached(56-22)425-5245Apr.2023inJuly2023(andthetimedepositrate,forthatmatter),ourthesiswasthatasdiego.celedon@jpmorgan.comMay.2023interestratescomedown,theseresourcesshouldlookforassetswithhigherInversionesJ.P.MorganLimitadaJun.2023returns.Theseincludelocalequities,whichhavebeenoutoffavorfromindividualJul.2023investorsinChile,reflectedinanallocationofthemutualfundsystemofonly2.1%EmyShayoChermanAug.2023oftotalAUMinChileanstocks.AfterseveralmonthsofindividualskeepingaSep.2023stableexposuretotimedeposits,thetrendstartedtoshiftinMarch,withdeposits(55-11)4950-6684Oct.2023heldbyindividualsdroppingbyUS$270mn,likelymarkingthebeginningofaemy.shayo@jpmorgan.comNov.2023normalizationtrend.Coincidentally,inflowsfromthemutualfundindustryintoBancoJ.P.MorganS.A.Dec.2023localequitiesreacheda6-yearmonthlyrecordinMarch,totallingUS$168mnofJan.2024investments(moredetailsonourlastFlowofFundsnote).Look...