A Brief New Breakdown of Treasury Bills Mutual Funds

On August 17, 2021, the Argentine Securities and Exchange Commission (“CNV,” after its acronym in Spanish) issued General Resolution No. 900 (the “Resolution”) establishing a “Special Regime for the Constitution of Open-Ended Treasury Bills Mutual Funds” (the “Regime”) for Open-Ended Mutual Funds whose special investment purpose consists of investments in national public debt securities acquired in primary placement with a maturity less than or equal to one year.

Mutual Funds established under the Regime must comply with the following investment policies and, supplementarily, also with the general provisions for Open-Ended Mutual Funds:

• at least 55% of the Mutual Funds’ NAV must be invested in national public debt securities acquired in primary placement with a maturity less than or equal to one year; and
• up to 45% of the Mutual Funds’ NAV may be invested in shares of Money Market Mutual Funds, provided that they are managed by another Mutual Fund Manager and that they do not construe reciprocal participations.

Finally, the Resolution establishes requirements for existing Mutual Funds at the time the Resolution becomes valid and enforceable and grants a term of 30 days from the date of publication of the relevant corporate resolutions for the Mutual Fund Manager to adjust the investment portfolios accordingly.