The Philippine Securities and Exchange Commission has issued rules governing the registration, operation and reporting of open-end investment companies structured as umbrella funds. An umbrella fund must contain at least two sub-funds with segregated assets and liabilities, include “Unitized Umbrella Fund” in its name, maintain at least PHP 100 million in subscribed and paid-up capital, and obtain the required secondary license and approval for its registration statement before offering securities. Although sub-funds have no separate legal personality, fund managers must treat them as separate investment companies. Each sub-fund’s assets may be used only for its own liabilities, limiting unitholder losses to investments in that sub-fund. Investors may switch between sub-funds under terms disclosed in the main prospectus. Fund managers must submit applicable investment company reports and monthly sales and redemption reports showing average net asset value calculations for each sub-fund. Umbrella funds must also file quarterly and annual financial statements for each sub-fund, either separately or through consolidated statements that adequately disclose each sub-fund’s financial position and performance. Annual statements must be audited by an independent auditor accredited by the commission.
2026-04-15Philippine Securities and Exchange Commission
Philippine Securities and Exchange Commission issues umbrella fund rules with PHP 100 million capital requirement
The Philippine Securities and Exchange Commission has established rules for umbrella funds containing at least two sub-funds with segregated assets and liabilities. Eligible funds need at least PHP 100 million in subscribed and paid-up capital, relevant regulatory approvals, and sub-fund-level reporting and financial disclosures. Investors may transfer between sub-funds under disclosed terms.