Mutual fund industry’s net assets hit P70B

Net assets of the country’s mutual fund industry reached a record-high of P70 billion as of July this year.

There are 11 asset management companies (AMCs) overseeing 31 mutual funds in the country.

A mutual fund is an investment company whose objective is to make money by investing and reinvesting in securities and other instruments. An investor can particiapte in the investment company or mutual fund by buying the shares of the fund, thus becoming a shareholder.

There are five basic types of mutual funds which are bond funds, equity or stock funds, index funds, money market funds, and balanced funds.

The bond funds remained the biggest and most popular fund accumulating P65.9 billion assets under management (AUM).

Net assets of the Ayala Life Fixed Income Fund Inc., ballooned to P39.8 billion while the ALFM Dollar Bond Fund Inc., posted net assets of P75.6 million. Both funds are managed by the BPI Asset Management Group. The Philam Dollar Bond Fund Inc. with P11 billion, while the Philam Bond Fund Inc. followed with P8.96 billion came in fourth. Both funds are run by the Philam Asset Management Inc.

The Sun Life Prosperity Bond Fund Inc. recorded net assets of P5.1 billion followed by the Sun Life Prosperity Dollar Abundance Fund with P62.7 million and the Sun Life Prosperity GS Fund with P55.8 million. These three funds are under the care of the Sun Life Financial Philippines.

The other bond funds are: ATR-Kim Eng Fixed Income Fund, P35 million; Cocolife Fixed Income Fund Inc. failed to report in July; Ekklesia Mutual Fund Inc., P71 million; Grepalife Fixed Income Fund Inc., P316 million; Legacy GS Fund Inc., P13.5 million; Legacy TD Fund Inc., P375 million; MAA Privilege Dollar Fixed Income Fund Inc., P5.7 million; MAA Privilege Peso Fixed Income Fund Inc., P56 million; and Prudential Fixed Income Fund Inc., P73.6 million.

Net assets of the equity or stock funds amounted to P1.37 billion. These funds are composed of ATR-Kim Eng Equity Opportunity Fund; Philam Strategic Growth Fund Inc.; Philequity Fund Inc.; and the Sun Life Prosperity Philippine Equity Fund Inc.

The balanced funds finally broke the billion peso barrier reaching P1.022 billion. These are composed of the dormant First Galleon Fund Inc.; the GSIS Kinabukasan Fund; Legacy HY Fund Inc.; Kabuhayan Fund; Philam Fund Inc.; Sun Life Prosperity Balanced Fund Inc.; and Sun Life Prosperity Dollar Advantage Fund Inc. – TPT