Magister pleads its financial case

Intervened Chilean pension fund manager AFP Magister has presented its financial case against liquidation before the country's pensions regulator, local daily Diario Financiero reported. Magister has presented a solid financial argument that backs the company's continued capacity to regulate its finances, the paper quoted CEO Rodolfo Pereira as saying. Magister's ailing financial situation was triggered by failed merger negotiations with fellow pension fund manager AFP Planvital, a process that left Magister responsible for the repayment of a US$22mn credit line. Chile's pension regulator had given the fund until July 31 to come up with a solution to its financial strife in order to avoid liquidation. In the case of liquidation, AFP Magister's 110,000 affiliates would be transferred to rival funds. The affiliates are granted a 90-day period to change to the fund of their choice, after which the regulator assigns them a fund.