Performance Evaluation Report: The Mutual Fund Company of the Philippines

In April 1996, the Asian Development Bank (ADB) made an equity investment of P100 million (then equivalent to $3.85 million) in the Mutual Fund Company of the Philippines (MFCP), a new, open-end growth and income (balanced) fund investing only in the Philippines and primarily in listed equities and fixed-income instruments of Philippine companies, as well as in government debt obligations. The main objective of the investment was to catalyze the development of the nascent mutual fund industry in the Philippines and attract small savers to the market, thereby increasing the domestic supply of capital for investment and growth. ADB's investment in MFCP was also expected to foster the development of secondary markets for debt and equities.

This report evaluates the performance of ADB's equity investment.