1. Business and General Information
Vantage Equities, Inc. (the “Corporation”), formerly iVantage Corporation, was incorporated in 20 October 1992 and is organized as an investment and financial holding company. It has authorized capital stock of One Billion Nine Hundred Million Pesos (P1,900,000,000), all of which are in common shares with a par value of P1.00 per share. Of the authorized capital stock, 1,788,312,570 are outstanding and 111,687,430 remain unsubscribed.
On 12 January 2009, Securities & Exchange Commission (SEC) approved the increase of authorized capital stock of the Corporation to Two Billion Two Hundred Fifty Million Pesos P2,250,000,000. Furthermore, the SEC has authorized the Corporation to issue 447,078,142 common shares out of its authorized but unissued capital stock to cover the twenty five percent (25%) stock dividend declared by the Corporation’s Board of Directors on 4 June 2008 and ratified by its shareholders on 27 June 2008. As of 31 March 2012, the Corporation has an authorized capital stock of Two Billion Two Hundred Fifty Million Pesos (P2,250,000,000) divided into 2,250,000,000 common shares with par value of P1.00 per share. Out of the authorized capital stock, 2,235,390,633 shares are issued, of which 135,599,500 shares are in treasury.
On August 1, 2015, the BOD and two-thirds (2/3) of the outstanding capital of the Company approved the increase in the authorized capital stock from 2,250,000,000 shares with par value of P1.00 per share in 2014 to 5,000,000,000 shares with par value of P1.00 per share in 2015. The SEC approved the increase in the authorized capital stock on October 27, 2015.
On May 19, 2015, the BOD approved the declaration of stock dividends equivalent to a total of P2.10 billion representing 2,099,791,133 shares at P1.00 par value per share, payable to all stockholders of record as of January 8, 2016. The said dividends were paid on February 3, 2016. The two-thirds (2/3) of the outstanding capital of the Company approved the dividend declaration on August 1, 2015.
The Corporation reverted to its original name by majority vote of the Board of Directors in November 2007, which the Securities and Exchange Commission subsequently approved in April 2008. The change in corporate name is consistent with the Company’s re-alignment of its investment focus towards the broad financial sector vis-a-vis its information technology focus during the early 2000’s.
On June 20, 2017, the Board of Directors (BOD) approved Article 3 of Articles of Incorporation to change its principal address from 2005 East Tower PSE Centre, Ortigas Center, Pasig City, Metro Manila, Philippines to 15th Floor Phil. Stock Exchange, 5th Avenue corner 28th Street, Bonifacio Global City, Taguig City, Metro Manila, Philippines. The Amended Articles of Incorporation was approved by the Securities and Exchange Commission on October 26, 2017.
The Company was originally organized with the primary purpose of oil and gas exploration, and investments and developments as among its secondary purposes. On 3 October 2000, the SEC approved the change in the Corporation’s primary purpose to financial holdings and investments, including but not limited to information technology companies and related ventures. Since the Registrant is an investment holding company, it is not competing in terms of sales and is not dependent upon a single customer or a few customers. Also, it needs no government approval of principal products or services.
In June 2006, the Corporation divested its shareholdings in International Exchange Bank (“iBank”), its largest single investment at that time. The iBank sale generated P 2.9 billion in cash and a P1.6 billion gain, capping an 11-year investment period that yielded a 16% compound annual return. The PSE Index, by comparison, only broke even during the same period. The divestment was timely in light of the substantial decline in financial markets in the following years.
The Corporation decided to invest its P2.9 billion “war chest” in a portfolio of equity and fixed-income securities. The mandate is to attain above market returns while adhering to prudent risk parameters, i.e. credit, liquidity and market risk. For this purpose, the Company hired its current President in October 2006 along with a team of finance professionals. The current team is also tasked to further professionalize management of the operating companies in the Vantage Group.
The operating subsidiaries that comprise the Vantage Group are the following:
Vantage Financial Corporation (formerly e-Business Services, Inc.)- 100% ownership
VFC traces its beginnings as the first Asia-Pacific direct agent of Western Union (WU), an International money transfer service provider. Aside from money transfer services, VFC also offers bills payment and airline ticketing services. Starting from just 3 service centers in 1999, VFC today operates some 140 branches in major cities and hubs throughout the country. VFC also maintains a roster of sub-agents with a network of over 200 locations nationwide.
In 2021, WU has changed its business model in the country. WU previously limited its service to representatives that exclusively carried the brand and who could maintain its industry-leading quality standards. WU no longer requires exclusivity and VFC has since partnered with other international and domestic remittance companies.
In January 23, 2018, the Securities and Exchange Commission approved the amendment of its Articles of Incorporation to change its company name from E-Business Services, Inc. to Vantage Financial Corporation.
Philequity Management, Inc. (“PEMI”) – 51% ownership
Philequity Management, Inc. (PEMI) is an investment management company established in 1993. PEMI is the proud investment manager and principal distributor of Philequity Fund, Inc. (PEFI), its flagship fund that has the longest track-record of consistent outperformance in the country. PEMI’s funds have consistently been recognized and awarded for their performance by the Philippine Investment Funds Association (PIFA) and local chapter of the CFA Society.
As a matter of course, VEI provides the initial investments in mutual funds PEMI incorporates in line with its growth strategy. The following mutual funds are considered VEI’s subsidiaries since abovementioned initial investment still represents substantial ownership in subject funds:
Philequity Balanced Fund, Inc. – 100% ownership
The Fund is engaged in selling its capital to the public and investing the proceeds in diversified portfolio of peso-denominated fixed-income and equity securities.
On November 11, 2017, the Board of Directors (BOD) decided to shorten the corporate life of the Fund until December 31, 2017.
Philequity Foreign Currency Fixed Income, Inc. – 100% ownership
The Fund is engaged in selling its capital to the public and investing the proceeds in diversified portfolio of foreign currency denominated fixed-income securities.
On November 11, 2017, the Board of Directors (BOD) decided to shorten the corporate life of the Fund until December 31, 2017
Philequity MSCI Philippines Index Fund, Inc. (PMPI) – 100% ownership
PMIF was incorporated in the Philippines, and was registered with the SEC on December 15, 2017 as an open-ended mutual fund company with the objective of tracking the returns of the MSCI Philippines Index.
In January 2019, PMPI launched its shares to the public
Philequity Alpha One Fund, Inc. (PAOF) – 100% ownership
PAOF was incorporated in the Philippines, and was registered with the SEC on February 13, 2019 as an open-ended investment company with the objective of attaining alpha or excess returns over the PSEi through superior stock picking.
In December 9, 2019, PAOF launched its units to the public.
Philequity Global Fund, Inc. (PGF) – 100% ownership
PGF was incorporated in the Philippines, and was registered with the SEC on June 24, 2019 as an open-ended investment company with the objective of investing in global index exchange traded funds to offer local investors exposure to global financial markets. The Fund has yet to start operations.
iCurrencies – 100% ownership
iCurrencies, Inc. was acquired from International Exchange Bank in 2006 when Union Bank of the Philippines acquired the latter from VEI and other shareholders. iCurrencies is organized primarily to engage in the business of buying and selling of foreign currencies. It is currently not operating.