Asset managers in the Philippines could be allowed to create umbrella funds thanks to draft proposals issued by the Securities and Exchange Commission (SEC).
The draft rules will enable an existing investment company to convert into an umbrella fund by amending its articles of incorporation and registration statement in line with the proposals.
Among the rules is that the fund must contain at least two sub-funds at any time during its operation.
In addition, a sub-fund will only be allowed to issue a single security type and cannot issue both shares and units.
The proposal is designed to give fund managers greater operational flexibility and the opportunity for cost savings, stated the SEC.
Market participants have until March 4th to submit their comments on the proposals.
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