Prompted by a change in Australian tax laws, Merrill Lynch Asset Management of Princeton, N.J., has begun offering 11 U.S. mutual funds in Australia. Merrill Lynch Asset Management will manage the funds and Merrill Lynch Private (Australia) Ltd. will distribute them.
The 11 funds are U.S. dollar-denominated and cover a wide spectrum of investment goals, from global technology to corporate bonds. They complement Australian dollar-denominated funds already offered by Merrill's Australian-domiciled subsidiary, Merrill Lynch Mercury Asset Management of Sydney.
Australia's government changed its Foreign Investment Fund laws in June to remove taxes on unrealized capital gains on U.S. funds. (MFMN, 9/13/99) Previously, unrealized capital gains on all overseas-domiciled funds in Australia were taxed at ordinary marginal rates.