Nicholas Pattman, Senior Associate and Philip Millward, Partner
Walkers Global (Latin America Group)
With mounting competition on the ground, Brazil-based fund managers are increasingly looking to attract international investors, giving rise to the rapid growth of the offshore Latin American asset base.
In March 2012, it will be 20 years since the Brazilian National Monetary Council (Conselho Monetário Nacional) introduced Resolution 1,912. Together with Resolution 1,787 enacted in 1991, it was instrumental in laying the foundations for Brazil’s investment funds industry. Rule 409 issued by the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários) in 2004 went further and introduced a consolidated set of rules applicable to the organisation and operation of mutual funds in Brazil. Since then, the industry in Brazil has continued to evolve and develop, not only in terms of AUM but also diversification of fund types. By the end of last year, AUM for the industry stood in excess of US$1 trillion.