Metrobank unit setting up first ETF
04 December 2012
News, Asia, Philippines
By David Macfarlane
In the Philippines, First Metro Investment Corp (FMIC), the investment banking unit of George Ty-led Metrobank group, announced on Monday, December 3, its board had approved the creation of an ETF with initial capitalisation of 250 million pesos (US$6.1 million), subject to regulatory approvals, according to Rappler.com.
FMIC joins two of the country's largest banks – Henry Sy's Banco de Oro and the Ayala group's Bank of the Philippine Islands – which have expressed an interest in rolling out ETFs by the end of the year.
Since the early 2000s, the local stock exchange in the Philippines has been prevented from issuing ETFs as a result of tax issues. It was only in October 2012 that the Securities and Exchange Commission finally issued a ruling on ETFs.
Based on the approved rules, ETFs to be listed should have a minimum capitalisation of 250 million pesos. A reputable fund manager must also operate and administer the ETF and at least two authorised participants should handle the issuance and redemption of ETF shares.
FMIC said its subsidiary First Metro Asset Management Inc will manage its first ETF.
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