The Philippine Stock Exchange (PSE) will revive next year its plans to allow real estate funds to list in the Exchange, PSE president Francis Lim said.
Lim, in an interview with reporters said, REIFs are very successful in other countries such as Hongkong and Singapore. He said this can be replicated in Philippines.
The listing of REIFs in the Exchange forms part of the PSE’s efforts to provide the public with more investment options other than equities. The PSE also has plans to list exchange-traded funds(ETFs).
Listing of REIFs in the Exchange has been proposed a few years back but did not prosper.
The Securities and Exchange Commission (SEC)however is in the process of reviewing its existing rules to accommodate changes needed for the listing of these instruments.
According to the PSE, listing of REIFs will not only diversify the financial instruments offered in the local stock market but would also help inject liquidity in the property market.
A real estate securities fund seeks to obtain a favorable long-term total return through both capital appreciation and current income by investing primarily in the equity and fixed-income securities of companies involved in the real estate industry.
As defined in the proposed rules, reif will be formed for the specific purpose of owning, operating or managing developed real estate assets and related securities. (AMM)
