Based on documents filed with the Securities and Exchange Commission (SEC), a total of four million shares, representing GDBFC’s authorized capital stock, will be sold at a proposed maximum price of P56 each.
Proceeds from the issue will be used to invest in medium to long-term fixed income instruments of government and private corporations dominated in US dollars, pesos and other foreign currencies that are acceptable as part of the Philippines’ international reserves.
GBDFC said it may enter into leveraging provided that it maintains an asset coverage of 300 percent at all times.
Leveraging is an investment strategy whereby the investor uses his existing investment assets as collateral to borrow funds to buy more investment assets. The strategy aims to potentially earn more than the cost of borrowing funds.
Grepalife Asset Management Corp. (GMAC) is the investment manager, principal distribution and administrator of the fund. With its pool of seasoned mutual fund professionals and the vast distribution network of the YGC, the GMAC aims to tap the segments of the investing public still untapped by the mutual fund industry, more specifically the middle-income markets.