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Portfolio > Mutual Funds

Cerulli: Fund Ta Changes May Attract Latin American Cash

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U.S. mutual funds may be heading south to look for new sources of assets.[@@]

The recent elimination of the 30% withholding on U.S. mutual fund distributions to non-resident aliens should spur an increase in sales of eligible products sold to Latin American private clients, according to analysts at Cerulli Associates, Boston.

“Latin American wealthy individuals are poised to increase their use of professionally managed products, including managed account programs and mutual funds,” Cerulli analysts write in a new report on the Latin American financial services market.

In addition, more distributors will be available to sell to Latin American investors, the analysts predict.

Annuities and separate accounts could be some of the vehicles that will benefit from the tax changes, the analysts write.

The analysts contend that many distributors in Latin America are interested in adding products from outside manufacturers, including U.S. asset managers.


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