Mutual funds recover lost ground

Chile's mutual fund industry is gradually recovering ground lost due to the war in Iraq and the scandal surrounding local financial services group Inverlink, local daily Estrategia quoted Scotia Sudamericano Fondos Mutuos CEO, Ivonne Merino, as saying. According to Merino, investors have shown renewed confidence in mutual funds as international waters calm and the country's financial system recovers to a semblance of normality following scandals involving Inverlink executives. Inverlink was intervened earlier this year on fraud charges involving the theft of financial instruments from state development agency Corfo and espionage at the central bank. The scandal rocked the local financial establishment and led to the resignations of former central bank chairman Carlos Massad and securities and exchange regulator Alvaro Clarke.