Answer ... The investment fund is a sui generis structure. Some of its features resemble those of a corporation, but in other aspects it seems closer to a trust. This can be confusing for international managers (and for international investors) which are used to AIFs being organised as limited partnerships or corporate structures. Limited partnership is not an available option, as Chilean law does not recognise its existence. Although available as a choice, corporations are subject to entity-level taxation (at rates from 25% to 27%), which renders them highly inefficient to manage collective investments.
In addition, since a significant number of the structural and operational aspects of public AIFs are regulated, the bylaws of public AIFs are brief when compared to the legal documentation of their international counterparts. This also explains the absence of an agreement between the AIF and the fund manager. Although certain investors (mainly institutional investors) seek contractual commitments from AIF managers, those agreements are relatively simple and are intended to facilitate compliance with specific regulations relating to those investors – most commonly, investments limits.