MANILA, Philippines - Two mutual funds managed by Grepalife Asset Management Corp. (GAMC) performed beyond expectations in 2009. Grepalife Dollar Bond Fund (GDBF) and the Grepalife Fixed Income Fund (GFIF) registered one-year absolute returns of 21.87 percent and 11.95 percent, respectively.
GAMC officer-in-charge and investment manager Teodoro D. Banaag said both funds maintain portfolio duration of less than five years. Duration is a measure of how volatile the return of a portfolio could be with respect to movements in interest rates. Being bond mutual funds, both the GFIF and GDBF are invested solely in fixed income instruments such as government and corporate bonds.
Mutual fund investors also benefit from liquidity as the mutual fund company stands ready to buy back the investment of a shareholder. Under current regulations, the proceeds from such buying back of investments, called redemptions, must be paid within seven banking days from receipt of the redemption request.
As for the Grepalife mutual funds, shareholders don’t have to wait for seven days because redemption proceeds are paid one day after the receipt of the redemption request.