It has been announced that in the last quarter of the year the first short term investment fund will be open, which will require a minimum investment of $500, and will be aimed at conservative investors.
The "Profitable Open Short Term Investment Fund" will be managed by the SGB Funds, so far the only company legally authorized to operate such a fund.Two other fund management companies are waiting to receive approval from the Superintendent of the Financial System in order to start operating.
The new regulations for investment funds in Costa Rica allow for finances to be raised for construction, energy, transportation and public infrastructure projects.
The amendment to the General Regulationon Managing Companies and Corporate Investment Funds was adopted on 23 June. With this change, any investment project, from theconstruction of houses to hydropower stations, can be financed and developed using a special investment fund which will be known as Infrastructure Project Investment Funds.
At the end of April 2016, assets under management grew by 5.8% compared to December 2015, equivalent to an increase of $242 million.
From a report by the Chamber of Funds in Costa Rica:
Managed assets at the end of April 2016, investment funds showed growth in assets under management of 5.8% compared to the volume that was handled in December 2015.In effect, it went from the equivalent of US $4,181,000 (December 2015) to US $4,423 million (April 2016), in other words, and there was an increase of US $242 million.This increase is explained by open-end funds, which made US $193 million, while the closed-end type, made US $49 million.
15 months after the law entered into force, it has been announced that in July this year the regulations for the operation of the funds will be ready.
In parallel with the regulations of the law, work is also being done on other standards related to the operation of investment funds, such as "... the conditions for calculating the price of individual securities and portfolio management," among other things.
The market regulator is preparing rules for a new type of short-term investment fund, which will be available before July.
The Superintendency of Securities (Sugeval) in Costa Rica announced that it will add to its portfolio an investment fund focused on very short term securities which are low risk and high liquidity, reported El financierocr.com. This new instrument will be approved in the first half of 2016.
A proposal has been made to extend the concept of real estate development funds to cover public and private projects for all types of infrastructure.
If the reform to the General Regulations on Management Companies and Investment Funds is approved, any investment project, from building houses to hydroelectric stations, will be able to be financed and developed through a special investment fund, that fund which would be called the Fund for Investment Infrastructure Projects.
Ten months after the law on Investment Funds was passed, the opening of the first management company has been announced, which will be part of the company Servicios Generales Bursátiles.
Although approval of the regulation to the law is still pending from the Central Bank, the creation of the first investment fund company has been announced, which will be a sister company to the brokerage firm Servicios Generales Bursátiles (SGB).
In Costa Rica a bill has been put forward which aims to allow cooperatives and private and public pensions funds to invest in public infrastructure.
The bill introduced in the Legislative Assembly "... aims to allow different private and public organizations dedicated to raising money from pension funds, to invest in the construction of public works."