Max Baucus: “the U.S. mutual fund industry has become a dominant force in developing, marketing, and managing assets for American…”

“the U.S. mutual fund industry has become a dominant force in developing, marketing, and managing assets for American investors. Since 1990, assets under management by U.S. mutual funds have grown from $1 trillion to about $3.5 trillion today. Yet, while direct foreign investment in U.S. securities is strong, foreign investment in U.S. mutual funds has remained relatively flat. Mr President, today I am introducing, along with Senators Gorton and Murray, the Investment Competitiveness Act of 1997. This legislation, which I have had the honor of cosponsoring in each of the last three Congresses, would eliminate a major barrier to attracting foreign capital into the United States while improving the competitiveness of the U.S. mutual fund industry. This legislation would remove a barrier to the sale and distribution of U.S. mutual funds outside the United States. The bill would change the Internal Revenue Code to provide that foreign investors in U.S. mutual funds be accorded the same tax treatment as if they had made their investments directly in U.S. stocks or shares of a foreign mutual fund.”