What is a key investment restriction that applies to Philippine peso UITFs?

A key investment restriction for Philippine peso UITFs is centered around the types of financial instruments in which they can invest. In general, UITFs are designed to provide a diversified investment vehicle, but they must adhere to specific regulations concerning their portfolios.

The restriction regarding investments in promissory notes is particularly relevant. Generally, UITFs are not allowed to invest in promissory notes because these instruments may lack the necessary liquidity or could carry higher risks that are not permissible within a regulated trust fund framework. Instead, UITFs are guided to invest in more stable and liquid securities to protect investors' interests and safeguard the fund’s integrity.

While UITFs may indeed have other restrictions, such as prohibitive investments in foreign equities or specific limitations on loans, the standout restriction in this context is the one regarding promissory notes. This ultimately ensures that the UITF maintains a conservative investment approach that aligns with regulatory guidelines, aiming to mitigate risk for investors.