The Securities and Exchange Commission (SEC) has provided the list of equities, bonds, funds and other securities where Personal Equity and Retirement Account (PERA) funds may be invested.
Deemed to be eligible PERA investment products are newly formed mutual funds, including any sub-fund of an umbrella fund and exchange-traded funds whose fund managers have a track record for the past five years prior to the application of being responsible for the operation and management of a registered mutual fund which has been offered to the general public.
The name of the newly formed mutual fund must contain the words “Personal Equity and Retirement Account” or “PERA,” the SEC said.
Real estate investment trust (REIT) shares, corporate bonds with an investible rating issued by an accredited credit rating agency, and equity securities that form part of the Philippine Stock Exchange (PSE) dividend yield index are also deemed eligible PERA investment products.
Government securities, securities issued by the Bangko Sentral ng Pilipinas (BSP), and corporate bonds issued by banks in compliance with BSP requirements are likewise considered as eligible PERA investment products.
Equity securities included in the PSE index (PSEi) may be classified as eligible PERA investment products, provided that the PSE certify to the SEC that the equity securities met the requisites of being non-speculative, readily marketable, and with a track record of regular income payment to investors.
The PSE-certified list of PERA eligible securities comprising the PSEi will be disseminated by the SEC through its website.
Meanwhile, a security loses its eligibility as a PERA investment product when the SEC declares it to be ineligible.
A registered equity security may also lose its eligibility if its registration statement gets suspended or revoked, or in the case of a PSEi member security, if it is removed from the PSEi.
Corporate bonds may be deemed ineligible if they are declared to be in default by a competent authority or person in accordance with applicable laws, rules, and contracts, and if their credit rating is downgraded to a non-investible grade.
“Failure to abide by the memorandum circular and other laws, rules, and relevant regulations will result in administrative penalties, and other civil and criminal liability provided for under applicable laws,” the SEC said.