On April 23, 2020, the Securities and Exchange Commission (“CNV”) issued General Resolution No. 835/2020 (the “Resolution”), making changes to the restrictions regarding liquidity and cash management applicable to open-end funds (the “Funds”) (with the exception of money market funds):
1) In general, all Funds may keep up to a 100% of their net worth in Argentine Pesos or invested in money market open-end funds.
2) Funds in foreign currency may keep up to a 100% of their net worth in the fund’s currency, both in local or foreign accounts.
3) Funds in foreign currency with shares that may be subscribed in Argentine Pesos, are allowed to keep up to the 25% of their net worth in the fund’s currency, both in local or foreign accounts. This restriction does not apply to those Funds authorized under Law No. 27,260 nor to amounts of shareholders not reached by the maturity extensions imposed by Decrees No. 596/19 and No. 141/20 (cuotapartistas no reperfilados).
Furthermore, the Funds in Argentine Pesos investing in foreign currency will only be able to invest up to 25% of their net worth, having to deposit the amounts both in local or foreign accounts. This restriction does not apply to amounts of shareholders not reached by the maturity extensions imposed by Decrees No. 596/19 and No. 141/20 (cuotapartistas no reperfilados).
Funds’ managers must comply with these new restrictions according to a schedule ending on May 15, 2020.
For more information, do not hesitate to contact Marcelo R. Tavarone, Federico Salim, Julieta De Ruggiero and/or Matías Otero.
In the following link, you can access the Firm’s statement on COVID-19.
For information concerning COVID-19 legal implications, please refer here.