Cerulli Associates, the Boston and London-based research and consulting firm, and Latin Asset Management, its strategic partner in Latin America, are predicting the $300bn (€345bn) mutual fund industry will double in size by 2006, despite Argentina's devaluation crisis.

Latin America is beginning to offer niche opportunities for fund managers. Until now, the acceptance of mutual funds as investment vehicles has been at the mercy of the local banks who dominate retail distribution, the latest Cerulli Associates report said.