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.
New Colombian pension decree may include loosened cross-border investment rules
February 25, 2014 by
David Salamanca, director of financial regulation at the Ministry of Finance, said a technical commission had been meeting since November last year and would continue its work until March, when it would deliver its final considerations.
AFP Planvital upheaval has different effects on industry and actors
February 25, 2014 by
The low-ball offer of Planvital will put trememdous pressure on its larger rivals to trim their fees, at least somewhat. Most in the industry fear that the government will still pursue its plan to launch a low-cost, state-run AFP, to compete with other industry players.
Bill that would modernize oversight of Chilean fund market likely to pass in second half
February 21, 2014 by
The bill enjoys the backing of most of the actors in the capital market. The local mutual fund association has given its blessing, as it believes the change is a necessary step to Chile becoming a regional financial platform.
Fees, returns and reforms on the AFP agenda
February 6, 2014 by
Industry actors have shown themselves open to accepting radical changes, apparently in line with the new direction set by the incoming Bachelet administration.
Source: Performance-fee model for Afores will not stall mandate rollout
January 16, 2014 by
This measure is part of a larger reform package slated to be submitted to Congress for debate in late 2014. The same package is likely to contain an increase in the international-allocation limit, which has been stuck at the 20% level since 2003.
Relaunch of Colombian fund industry set for 2014
January 16, 2014 by
The most important changes in the new rules include allowing specialization of the various activities required to operate mutual funds, fast-tracking the authorization and distribution process for funds investing in traditional assets, and a more prominent role for custodians. In addition, non-Colombian securities registered in MILA countries would now be considered "traditional" assets.
