Definition of terms

• Assets Under Management (AUM) 


  Shall refer to the total market value of all the financial assets of an Investment Company managed by a Fund Manager
• Certified Investment Solicitor (CISo)


  Shall refer to a natural person of legal age duly licensed by the Commission and appointed by the Fund or the FM/MFD to solicit, sell or offer to sell the shares or units of an Investment Company to the public.
• Collective Investment Scheme (CIS) 


  Shall refer to an arrangement whereby funds are solicited from the investing public for the purpose of investing, reinvesting and trading in securities or other assets allowed under the IRR
• Credit Ratings


  Shall refer to those ratings assigned to any entity that measures the creditworthiness of a borrower or its capacity to fulfill its financial obligations. These ratings are derived after considering all factors, and issued by a credit rating agency accredited by the Commission
• Custodian


  Shall refer to an independent third party entity duly authorized or accredited by the Bangko Sentral ng Pilipinas or the Commission to engage in the business of custodial and safekeeping of investment assets
• FM/MFD


  Shall refer to a Fund Manager who, aside from managing a Fund, also functions as a distributor of the shares or units of the Investment Company and may no longer be required to secure a separate license for the distribution of the shares or units of the Investment Company
• Fund Manager (FM) 


  Shall refer to a registered entity with an Investment Company Adviser license that is engaged in the business of managing the daily operations of an Investment Company in the investment, administration and accounting of fund assets and the monitoring of the activities of third party service providers such as custodian, transfer agent and distributors
• Investment Assets or Eligible Assets


  Shall refer to those assets in which the funds of the Investment Company may be invested in
• Investors of the Fund 


  Shall refer to the shareholders or unitholders of the Investment Company who executed a subscription agreement with the Investment Company or the Fund Manager to subscribe to the shares
• Investment Company Adviser


  Shall refer to an Investment Company Adviser licensee who regularly advises or recommends investment decisions with regard to the securities or other portfolio of the Investment Company pursuant to an advisory contract with the Investment Company
• Issuer


  Is the originator, maker, obligor or creator of the security
• Mutual Fund Company (MFC)


  Shall refer to a registered open-end Investment Company that holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting and trading in securities. It is a company that pools the funds of individuals and institutional investors to form a massive asset base which is entrusted to a full-time professional Fund Manager who develops and maintains a diversified portfolio of security investments. It offers for sale or has outstanding any redeemable securities of which it is the issuer
• Mutual Fund Distributor (MFD)


  Shall refer to a juridical person duly licensed or authorized by the Commission to distribute shares or units of an Investment Company as either principal distributor or sub-distributor
• Net Asset Value (NAV) 


  Shall refer to the aggregate value of each fund, either shares or units, as determined by the market value of its underlying securities holdings, including any cash in the portfolio less liabilities, computed at the close of the trading of securities for the day
• Net Asset Value per Share or NAVps


  Shall refer to the computed NAV on a per share basis at the close of the day. It is calculated by dividing the Investment Company’s total net assets from the shares outstanding
• Organized Market


  Shall refer to an exchange, government securities market or an over-the-counter market that is regulated by the relevant competent regulatory authority and where financial instruments are regularly traded. It shall be of good repute and open to the public or a substantial number of market participants.
• Sales Load


  Shall refer to the charge or commission on the cost of acquiring the shares or units of an Investment Company
• Solicitation


  Shall refer to the act of providing information about a security or investment product being offered for sale with the view of making another person a client or closing or bringing in a sale or purchase of security or investment product
• Transfer Agent


  Shall refer to a juridical person duly licensed by the Commission as a transfer agent and appointed by the Investment Company, or the fund Manager, to maintain an accurate registry for recording the initial and subsequent transfer of securities