Tax Cheats’ $500 Billion Targeted for Argentina Fund Revival
By: Carolina Millan
Argentina is counting on tax cheats to revive a moribund corner of its capital markets.
Closed-end mutual funds -- all but non-existent in Argentina during the past two decades -- are suddenly hot again as President Mauricio Macri ushers in sweeping changes to boost investment after 15 years of neglect.
He’s championing a program that lets Argentines with some $500 billion of undeclared overseas assets avoid harsher tax penalties by bringing back the money and investing in the funds. The goal is to provide much-needed capital for infrastructure, agricultural and housing projects.
That’s prompted brokerages to start closed-end funds to meet an expected surge in demand before a March 31 deadline. After leaving the investments for dead in the past decade, at least six firms say they’re now hiring specialists to structure the funds and analysts to scout for projects.
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