The Philippine Securities and Exchange Commission (SEC) has amended investment company rules to permit exposure to a single enterprise or issuer above the standard 15% of net assets, up to the higher of 20% or the issuer’s corresponding index weight. Any exposure above 15% must consist solely of exchange traded equity securities of that same issuer. The fund’s total investment remains capped at 10% of the investee company’s outstanding securities.
The relaxation seeks to improve the competitiveness of mutual funds with listed equity exposure, following the Philippine central bank’s increase in the comparable limit for unit investment trust funds from 15% to 20%. It also follows a separate SEC relaxation in 2025 that exempted funds without actual investments in financial derivatives from the 20% single business group limit, while retaining single issuer restrictions.