STXNEWS LATAM-Brazil creates investment fund for mid-sized companies
Brazil's securities industry watchdog CVM unveiled on Tuesday a framework for the creation of investment funds focused on shares of mid-sized, listed companies. In a statement, CVM said the funds, which will be known in Portuguese as "fundos de investimento em ações - mercado de acesso," will be allowed to invest as much as two-thirds of their capital in shares of listed mid-sized firms and up to one-third of capital in privately held mid-sized companies.
Fund managers will be allowed to charge performance fees based on absolute returns such as interest rate indexes or the inflation rate, for example, because of the lack of benchmark performance indexes for mid-cap shares, the statement noted.
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