Local mutual funds, which fall under the Unified Fund Law, will be taxed at 10%, while President Bachelet's (photo) tax reform will strip private investment funds (FIPs) of their 35% exemption from the corporate tax rate. The FIP segment is worth around USD 15 billion.
Santiago Zarauza is the new head of Latam distribution at HMC Capital
June 11, 2014 by
Zarauza joins the firm, which has raised close to USD 1 billion in Chile for global managers, after a successful period with JP Morgan Funds.
Panel recommendation on AFP benchmarks could force additional offshore allocations
June 2, 2014 by
A committee of experts is set to opine on how to set minimum-return benchmarks, and also weigh in on the government's proposal to stimulate the outflow of dollars by encouraging additional cross-border exposure on the part of the AFPs.
Pension managers replace equity with mutual funds and ETFs
May 28, 2014 by
Local experts point to disappointing results in Brazilian equities and attractive opportunities in global mid-cap companies that target the consumer sector.
Most multifamily offices exempt from onerous registration requirements
May 28, 2014 by
It is estimated that multifamily offices manage about USD 3 billion, approximately 10% of the amounts managed by traditional single family offices, belonging to the richest families in Chile.
Pimco may have opening selling Irish-domiciled fixed-income ETFs to Chilean AFPs
May 20, 2014 by
The AFPs have shunned fixed-income ETFs to date because most are domiciled in the US and subject to withholding tax.
US-Chile tax treaty would rekindle AFP interest in US-domiciled funds
May 14, 2014 by
If the US does away with charging a 30% withholding tax on certain distributions, US-domiciled funds would gain tax-equalization vis-à-vis Luxembourg and, hopefully, a fresh look from Chilean pension managers.
Loan funds make initial appearance in Chilean pension portfolios
April 29, 2014 by
Senior loan funds have a similar risk structure to high yield, but with shorter duration. The big players in these instruments include firms such as PIMCO, Neuberger Berman, Ares, and Oak Tree. Chilean AFPs have made allocations to funds sponsored by ING, Invesco and PIMCO.
As assets swell, global managers may reconsider Chilean distribution strategies
April 25, 2014 by
After reaching a certain level of sales, some foreign firms have recognized the need to formalize their local presence. But many still remain faithful to multi-brand distribution. This article takes a fresh look at the pros and cons of the schemes currently in place in Chile.
Tax reform will impact the asset management industry
April 25, 2014 by
Some items in the tax reform proposal presented April 1 by President Michelle Bachelet could impact the competitiveness or attractiveneness of asset management vehicles vis-a-vis other savings vehicles.
