|
|
|
1. Mutual funds may not
invest in any of the following: |
|
|
- Margin purchase of
securities (investments in partially paid shares
excluded)
- Commodity futures
contracts
- Precious Metals
- Unlimited liability
investments
- Short selling of
currencies
- Short selling of
investments
- Other investments as
prescribed by the SEC
|
|
2. |
Mutual funds are not allowed to
incur any debt or borrowing unless at the time of the occurrence there is asset coverage of at least 300%.
|
|
3. |
Investment companies cannot
undertake in an underwriting or selling group in connection with the public distribution of securities except
for its own capital stock.
|
|
4. |
Funds cannot make any investment
for the purpose of exercising control of management.
|
|
5. |
The maximum investment any fund in
any single enterprise shall not exceed ten percent (10%) of the fund's net asset value except
obligations of thePhilippine government or its instrumentalities. Provided,
that in no case shall the total investment of the fund exceed ten percent (10%) of
the outstanding securities of any investee company.
|
|
6. |
For liquidity purposes, at least
10% of all funds shall be invested in liquid/semi-liquid assets such as Treasury notes or bills, BSP Certificates of Indebtedness, and other government securities or bonds.
Savings and time deposits with any government or commercial bank, provided
that in no case shall such savings or time deposits be accepted or allowed
under a “bearer”, “numbered” account or similar arrangements.
|
|
7. |
The investment of funds in real
estate properties shall not exceed 25% of the total investment portfolio.
|
|
8. |
Funds cannot engage in lending
operations without prior approval of its Board of Directors. Such approval shall be limited only to corporations
or other entities, private or public, determined to be financially sound by
the Board.
|
|
|
