PERU - The National Securities and Exchange Commission (Conasev) has altered the diversification criteria with which Peruvian mutual fund investments have to comply. The regulatory body considered that, since mutual funds are composed of voluntary saving contributions, it was appropriate to widen the range of the products that fund managers can offer, to allow greater diversification of both country risk and exchange-rate risk. This approach will also reduce the risks of concentration of mutual fund investments and encourage portfolio management with a global outlook.

The approved text eliminates the diversification criteria requiring at least 50 percent of mutual fund investments to be held in securities traded through centralized market dealing mechanisms (stock markets and elsewhere), or in deposits or securities issued or guaranteed either by the government or by Peruvian financial institutions.

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