The Grepalife Fixed Income Fund (GFIF) and the Grepalife Dollar Bond Fund (GDBF) posted net absolute returns of 9.25 percent and 8.58 percent, respectively, on a year-to-date basis at the start of December. GAMC is the fund manager for the two mutual funds.
"In terms of ranking among bond funds invested primarily in foreign currency securities, the GFIF and GDBF were ranked number one and three, respectively in terms of investment performance," Efren Ll. Cruz, senior vice president and general manager of GAMC, said in a statement.
Latest statistics indicate that the GFIF stood at P182 million from 178 individual accounts at the end of November. The GDBF was likewise recorded at P228 million from 245 individual accounts.
Cruz said that the original plan was for its mutual funds to at least beat inflation. The GFIF was launched in late 2005 and the GDBF early this year.
"But the two mutual funds have since then performed beyond expectations in 2006," he added.
GAMC officials said that it was imperative for the fund manager to produce positive real returns for its investors. Positive real returns allow investors to prepare for future obligations like sending children to college or funding one’s retirement.
Cruz said they are making good progress in making the public aware that Grepalife mutual funds are logical alternatives to investing for the future, especially in a regime of low interest rates.
The GFIF is a peso bond fund that is invested primarily in US dollar assets and uses forward contracts to hedge against currency risks, while the GDBF is a US dollar bond fund. Both funds invest in global fixed income instruments.
The minimum initial investment size for the GFIF is P5,000 while that for the GDBF is $100. Both funds allow investor to inquire about the value of their investments via an Internet online service or through texting.
A mutual fund is an investment company whose objective is to make money by investing and reinvesting in securities and other ins-truments. An investor can participate in the investment company or mutual fund by buying the shares of the fund, thus becoming shareholders.
The fund is managed by an asset management company or fund manager composed of full-time investment professionals.
There are five basic types of mutual funds: peso or dollar bond funds, equity or stock funds, index (equity) funds, money market funds, and balanced funds.