Chile Fund’s outlook is bright

Article Excerpt

CHILE FUND $15.63 (New York symbol CH) (CWA Rating: Aggressive) is a closed-end fund that invests primarily in Chilean stocks. Prices for copper, a key commodity for Chile, are now at $2.31 U.S. a pound, down from the all-time highs of over $4 U.S. they reached in June, 2008. Chile is a major exporter of copper, particularly to Asia. In fact, it’s the world’s biggest supplier of copper. Chile’s President Michelle Bachelet prudently used high copper prices from 2006 to 2008 to pay off the country’s foreign debt and to save for an economic downturn. As a result, Chile is now able to implement a big economic stimulus plan without taking on debt. This includes public-works projects, tax breaks for businesses and distributing money to its poorest citizens. The fund invests in the country’s biggest companies, including Empresa Nacional de Electricidad (power), Banco Santander Chile (banking), Sociedad Quimiday Minera de Chile (mining) and Empresas CMPC (pulp and paper). Chile Fund is now trading at…