Remember when the options-pricing pioneer Robert Merton won the award in 1997 a year before his hedge fund Long Term Capital Management imploded and almost took down the world financial system?
The Chilean system has given a boost to the country's fund-management industry, and subsidiaries of American fund managers have captured as much as a third of that new market, according to Celfin, a local subsidiary of Salomon Brothers.
Another 3% of the workers' pay is kept back to pay the management fees, which are regulated, and to finance a disability insurance fund for the system as a whole.