The Securities and Exchange Commission on Monday released the list of equities, bonds, funds and other securities where Personal Equity and Retirement Account funds may be invested in.
PERA, or Personal Equity and Retirement Account, is a voluntary retirement savings program that aims to provide Filipinos tax-exempt facility to supplement future pension benefits.
The SEC issued Memorandum Circular No. 7, Series of 2022, which states that securities registered pursuant to the requirements of Republic Act No. 8799, or the Securities Regulation Code and Republic Act No. 2629, or the Investment Company Act, are deemed to be eligible PERA investment products.
These include newly-formed mutual funds, including any sub-fund of an umbrella fund and exchange traded funds whose fund managers have a track record of at least five years and whose names contain the words “Personal Equity and Retirement Account” or “PERA”; real estate investment trust 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 index.
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 Dividend Yield Index are also deemed eligible PERA investment products.
Securities issued by the Bangko Sentral ng Pilipinas and corporate bonds issued by banks in compliance with BSP requirements are also eligible PERA investment products.
Equity securities included in the PSE index may also be classified as eligible PERA investment products, provided that the PSE certifies 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 SEC said it may qualify other securities to be eligible as PERA investment products if the product is non-speculative, readily marketable and has a track record of regular income payment to investors.
