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MANILA, Philippines — The Philequity fund management group has obtained approval from the Securities and Exchange Commission to launch a new mutual fund that invests in publicly listed companies with a good track record of dividend payout.
The new fund, Philequity Dividend Yield Fund Inc., was allowed to register 500 million common shares at a par value of P1 each representing its authorized capital stock of P500 million.
Philequity Dividend Yield Fund was also given a license to operate as an open-end investment company or one that regularly sells and redeems its shares based on net asset value per share.
This is the fifth fund under management by Philequity Management Inc. (PEMI). The other mutual funds under the group are Philequity Fund Inc., Philequity Dollar Income Fund Inc., Philequity PSE Index Fund. Inc. and Philequity Peso Bond Fund Inc.
“The fund is a medium-risk fund with investments that consist primarily of equities in companies listed on the Philippine Stock Exchange that distribute dividends,” according to a regulatory filing released by the SEC on Wednesday.
The percentage of the fund which may be invested in any single listed company should not exceed 15 percent, the document said.
Minimum initial investment to participate in the fund is P20,000 while minimum additional investment is P5,000. Investment must be paid in cash. Installment payments are prohibited.