SEC gives go-signal to First Metro ETF


The Securities and Exchange Commission (SEC) has given the green light to First Metro Investment Corp.’s (FMIC) Exchange Traded Fund (ETF), which now has a capitalization of P3 billion, twice higher than the original approved capital stock of P1 billion.

Also, the signing ceremony of First Metro Philippine Equity ETF Inc. has been scheduled on October 21, which will make FMIC the first to offer ETFs in the country.

An ETF is an investment fund that is similar to a mutual fund that tracks a basket of assets, but is traded on a stock exchange similar to stocks. But unlike mutual funds, the price of an ETF is quoted real time, so investors immediately know how much they are buying or selling their ETF shares for.

In its preliminary application with the SEC, First Metro Philippine Equity ETF said that it intends to have an authorized capital stock of P3 billion consisting of 30 million common shares with a par value of P100 each.

Upon incorporation, the fund’s authorized capital stock was only P1 billion consisting of 10 million shares with a par value of P100 each.
Subsequently, the fund increased its authorized capital stock from P1 billion to P3 billion.

Out of the increase in the authorized capital stock, FMIC subscribed and paid for P500 million.

“First Metro Philippine Equity Exchange Traded Fund Inc. aims to provide returns that would reflect the performance of the Philippine equities market by investing in a basket of securities included in the PSEi [Philippine Stock Exchange index]. The portfolio of the fund is to be rebalanced and reconstituted every six months, in order to adjust to the current composition of the PSEi,” FMIC said in its prospectus.

Madelaine B. Miraflor


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