ABSTRACT
This chapter provides an overview of regulatory changes in the Latin American capital markets, the structures adopted by investment funds and the specific definition of real estate investment funds in Latin American countries. It evaluates the types of real estate investment funds in Latin America. The chapter discusses the characteristics of real estate investment trusts (REITs), their similarities with investment funds existing in some Latin American countries and the benefits of REITs for Latin American investors, with the country case studies of Brazil, Argentina and Uruguay. Investment fund creation generally allows the pooling of capital to provide larger amounts to invest. REITs in Brazil are joint-owned investment funds whose purpose is to apply funds to real estate undertakings and their derivatives. Capital markets, investment funds and operations with financial assets are supervised by the relevant institutions of the banking in each country. In general terms, the economies of Latin American countries are largely dependent on the banking system.
