Original article: A los afiliados, ni una disculpa: presidente del gremio preocupado por reputación de las AFP tras desplome del Fondo E

President of Pension Fund Association Expresses Concern Over Industry Reputation Amid Major Fund E Collapse

In light of the collapse of Fund E and significant pension losses, the President of the Association of Pension Fund Administrators (AAFP), León Fernández de Castro Peñafiel, has voiced greater concern for the industry’s reputation than for issuing an apology or establishing a compensation mechanism for affected members.

Pension funds have incurred losses totaling $7.7 billion due to investments in U.S. interest rates, with estimated impacts exceeding $11 billion on pension savings. The Fund E, which is viewed as the system’s most conservatively managed fund and includes nearly 770,000 members—over 60,000 of whom are over 60 years old—experienced a real decline of 10.4% from January to September 2026, marking the second worst performance on record, while Fund D saw a drop of 6.38% in the same timeframe.

In an interview with Mesa Central on Canal 13, Fernández was questioned about the crisis and the risks associated with pension savings, opting instead to defend the supervisory mechanisms of the AFP, stating that it is up to the authorities to determine whether any imprudent decisions were made.

According to the association president, no conclusions should be drawn before the investigations are complete.

«The Superintendence of Pensions continuously conducts reviews of all assets, all risks, and all elements related to investment strategy. This is a regular process and must comply with institutional requirements,» Fernández stated, emphasizing the importance of adhering to procedural standards.

«This is what must be addressed today. Any uncertainties need to be clarified; there is an institution that must resolve these matters, and an investigation is underway,» he emphasized in comments reported by Diario U. de Chile.

When asked if the fund administrators acted imprudently by taking certain risks, the president of the association replied: «We should not pass judgment on risk levels until all questions are clarified,» he remarked.

Regarding why the AFPs maintained investments in swaps without any of them or their respective boards opting to divest, he reiterated that conclusions should not be drawn until reviews are completed.

Fernández also stressed that the operations of pension fund administration occur under a regulatory framework that entails supervisory obligations, control, and accountability, meaning investment decisions are not solely based on individual criteria but involve internal structures that must meet regulatory demands.

«These are long-term designs, highly regulated, very structured with corporate governance and strict governance measures,» he explained.

«This is likely the most regulated industry that exists, as it is part of social security, and thus all decisions made have their decision-making bodies, oversight, regulation, and reporting to authorities at all times,» he added, according to the cited outlet.

He also noted that he is unaware of the «internal incentives» of each AFP, distinguishing the role of the AFP Association from the individual decisions each administrator makes concerning fund management.

On the potential for AFPs to voluntarily establish mechanisms for compensating affected members due to losses in the funds, Fernández limited his response to stating that «this is not a union matter«.