Chile cenbank ups limits on pension fund investments

SANTIAGO, Nov 30 (Reuters) - Chile's central bank said on Friday it agreed to raise limits on private pension fund investments abroad to 40 percent from 35 percent, in-line with a an announced schedule.

The central bank said in a statement that the new limits, which are meant to help distribute risk for pension funds, would come into effect as of Dec. 18.

"The rise in maximum investment limits should contribute to the divsersification of risks for pension funds," the bank said.

According to the plan announced by Chilean President Michelle Bachelet in May, pension funds would be allowed to invest up to 40 percent in months five through eight after the law was enacted, and will be permitted to invest up to 45 percent after the ninth month. (Reporting by Antonio de la Jara; Editing by Tom Hals)