<\/p>\n
THE SECURITIES and Exchange Commission (SEC) said its move to permit umbrella funds \u2014 investment firms that house multiple sub-funds under a single legal structure \u2014 is supposed to simplify participation in Philippine capital markets.<\/p>\n
\u201c[The rationale behind the umbrella fund] is to make things easy,\u201d SEC Chairman Francisco Ed. Lim told reporters on the sidelines of an event on Wednesday.<\/span><\/p>\n \u201cThe mutual fund industry is a key stakeholder in our capital markets because they\u2019re those buying,\u201d he said. \u201cIf the institutional investors are few, if the retail investors are few, I feel that\u2019s certainly one of the the reason why our market is small.\u201d<\/p>\n Mr. Lim said easing regulations could help speed up market development by lowering barriers to entry for each institutional and retail participants.<\/p>\n The SEC on Wednesday issued Memorandum Circular No. 14, which sets the rules for umbrella funds that allow multiple sub-funds to operate under a single investment company.<\/p>\n Umbrella funds are open-end investment firms composed of a minimum of two sub-funds with various investment objectives, strategies, currencies and fee structures.<\/p>\n Each sub-fund functions as a definite portfolio with its own assets and liabilities, at the same time as it operates under a single legal entity.<\/p>\n The principles require umbrella funds to keep up a minimum of two sub-funds and set timelines for registering additional sub-funds. Extensions for registration could also be granted just for meritorious reasons approved by the commission.<\/span><\/p>\n The memo outlines procedures for launching, reallocating and terminating sub-funds. These include board approval requirements and investor notification obligations.<\/p>\n It also allows investors to change between sub-funds, subject to disclosures within the prospectus.<\/span><\/p>\n Fund managers must submit separate reports for every sub-fund. Monthly submissions should include the typical net asset value per unit, while quarterly and annual reports must include five-year performance data.<\/p>\n The framework also requires detailed disclosure of cross-sub-fund investments, including holdings, market value, net asset value share and related fees.<\/p>\n These disclosures are intended to provide investors a clearer view of exposure across sub-funds inside the same umbrella structure.<\/p>\n Umbrella funds must file financial statements for each the general entity and every sub-fund.<\/p>\n Consolidated financial statements are allowed if sub-fund details are disclosed within the notes, in accordance with Philippine Financial Reporting Standards and SEC reporting rules.<\/p>\n Investment firms must secure a license and register their securities before offering them to the general public.<\/p>\n Securities could also be registered in full for allocation across sub-funds or in stages as additional sub-funds are introduced.<\/p>\n The SEC said the framework goals to support capital market development, enhance investor protection and ensure full and fair disclosure.<\/p>\n It added that allowing multiple sub-funds under a single entity could improve operational flexibility while offering investors more diversified and cost-efficient investment options. \u2014 Alexandria Grace C. Magno<\/b><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" BW FILE PHOTO THE SECURITIES and Exchange Commission (SEC) said its move to permit umbrella funds \u2014 investment firms that house multiple sub-funds under a single legal structure \u2014 is supposed to simplify participation in Philippine capital markets. \u201c[The rationale behind the umbrella fund] is to make things easy,\u201d SEC Chairman Francisco Ed. Lim told […]<\/p>\n","protected":false},"author":1,"featured_media":316147,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[4290,6530,9076,962,2274,17694,25377],"class_list":["post-316146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-access","tag-easier","tag-fund","tag-market","tag-rules","tag-sec","tag-umbrella"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/316146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/comments?post=316146"}],"version-history":[{"count":2,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/316146\/revisions"}],"predecessor-version":[{"id":316149,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/316146\/revisions\/316149"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media\/316147"}],"wp:attachment":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media?parent=316146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/categories?post=316146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/tags?post=316146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}