The Securities and Exchange Commission (SEC) has approved the application of Philam Managed Income Fund, Inc. to operate as open-end investment company with an authorized capital stock of R1 billion.
Philam Managed Income Fund registered a total of 100 million common shares with par value of R.01 per share. The Fund’s subscribed and paid-up capital is at R25 million, lower than the R50 million required by the law.
According to the SEC, Philam Managed Income Fund can be allowed to have a subscribed capital that is lower than what is required by the Investment Company Act because it is one of a group of investment companies to be created under the management of the Philam Asset Management Inc. (PAMI).
PAMI owns almost 100 percent of Philam Managed Income Fund. Other mutual funds under PAMI include Philam Fund, Inc., Philam Bond Fund, Philam Dollar Bond Fund, GSIS Fund and Philam Strategic Growth Fund.
Meantime, Philam Managed Income Fund is expecting net proceeds of R99.62 million from the offering of its shares to investors. Proceeds will be used to build up the company’s investments in domestic fixed-income instruments including treasury bills, Bangko Sentral ng Pilipinas Certificate of Indebtedness and other government securities or bonds.
Further, the mutual fund disclosed its investment in any single enterprise shall not exceed an amount equivalent to 10 percent of its total net worth.
It added that for liquidity purposes, at least 10 percent of its fund shall be invested in liquid or semiliquid assets.
Further, the Fund said it will also invest not more than 20 percent of its total net assets in debt instruments issued by foreign governments and corporations that are pre-approved by the Fund Manager’s board of directors.
A minimum purchase of P5,000 worth of shares shall be accepted for each initial investment at Philam Managed Income Fund. Subsequent investments shall be at least P1,000.
Each share shall be offered at an offer price based on the Fund’s Net Asset Value Per Share (NAVPS) as of the banking day if the investment is received within the daily cut-off time. As of December 31,2005, the computed NAVPS is P1 per
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