Portfolio Tilt

Combining active and passive investment management.

Colbun Companies

In the case of Empresas CMPC S.A. (IPSA: CMPC), it will invest $500 million in its modernization. Bank of Chile (NYSE:BCH), plans to improve their services and technological processes after the merger with the Citi (NYSE:c) by a value of US $100 million. Cencosud (IPSA:CENCOSUD), for its part, will allocate close to $1 billion in consolidating their markets. The other two companies belonging to the top ten of the Santiago values Exchange, Compania de Aceros del Pacifico S.A. (IPSA:CAP), and Colbun (IPSA:COLBUN), also have ambitious expansion projects. CAP S.ainvertira US $1.6 billion to increase its production by more than double, while Colbun has projects for about US $1.5 billion for the next five years. What is leading these firms to carry out such ambitious plans of? expansion? Without a doubt, there are two determining factors depending on the orientation of the company, and who are the strength of the Chilean economy beyond the difficulties which is currently going through, and the search for consolidating the diversification both at regional level and of activities that are being carried out some of the major companies.

In the article for two weeks ago while it seeks to solve the current problems, Chile looks to future, he commented about the Chilean Government’s long-term vision, which ensures that the bottlenecks that may face the economy are minimized. With these companies, who have an interesting perspective, the inverter has a wide variety of opportunities to diversify its portfolio. As comment on them for more than one month the Panorama to invest in Chile is, beyond the short-term problems currently facing the Chilean economy, the macroeconomic fundamentals remain solid.