The Commission raised the maximum percentage that mutual and closed-end investment fund portfolios can hold in the instruments of a single issuer or group. In so doing, it allows AFPs to purchase funds that are slightly less diversified.
Private-fund investors likely to flock to mutual funds in wake of tax changes
June 11, 2014 by
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.
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.
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.
Amafore proposes alternative pension law reform in Mexico
May 23, 2014 by
Carlos Noriega (pictured) said the pension-manager association is pushing for greater tax incentives for those who save on a voluntary basis.
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.
Pension regulator sees large opportunity in Afore market for global firms
May 9, 2014 by
The head of the pension fund regulator, the Consar, told Fund Pro Latin America that it is "inevitable and absolutely indispensable" that an increase in the 20% international-investment limit be discussed in Congress. Meanwhile, the CIO of Afore Banamex shares his bold plan to move the international portfolio to active managers.
CVM rule change would drastically reduce minimum-investment hurdle for ‘superqualified’ investors
May 5, 2014 by
Currently, funds of international funds require a minimum investment of BRL 1 million (USD 400,000) - a very high hurdle even for an affluent investor with millions in net worth. The proposed change by the CVM is to allow fund sponsors to set their own minimum-investment amounts for funds exclusively designed for Professional Investors, provided that these investors have BRL 1 million invested in total in the Brazilian market.
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.
Derivatives use by long-only funds still likely to frustrate global managers in Peru
March 12, 2014 by
The regulation, which will create a system similar to the one operating in Colombia, provided a glass-half-empty vs. glass-half-full predicament for global fund managers, since mention of derivatives use in the funds' investment policies may still prevent largely long-only funds from flying under the regulators' radar.
