The Argentina Securities Commission (CNV) has authorized open investment funds (FCIA) to invest up to 25% of their net assets in units of exchange traded funds (ETFs) structured as open investment funds that track indices or baskets of assets. The authorization follows the CNV’s April consultation on a framework for local ETFs. The current update also notes that the first local ETF tracking the MSCI Merval index is already in place. General Resolution No. 1177 also relaxes investment rules for closed investment funds focused on credit (FCICC), allowing FCIA to allocate up to 20% of their net assets to these vehicles under prudential conditions. Eligible FCICC units must carry an AA risk rating on the national scale. The credit funds must mature no more than two years after the FCIA acquires their units.
Argentina Securities Commission allows 25% local ETF allocations by open investment funds and eases credit fund investment rules
The Argentina Securities Commission has authorized open investment funds to allocate up to 25% of net assets to local ETFs structured as open investment funds. It also permits investments of up to 20% of net assets in closed credit investment funds. Eligible credit fund units must have a national scale AA rating, and the funds must mature within two years of acquisition.