FAMI hikes fund pool to P14.8B in June

MANILA, Philippines - The First Metro Asset Management Inc. (FAMI) has reported assets under management (AUMs) amounting to P14.8 billion, up slightly by 4.22 percent mid-June this year, compared to the P14.2 billion in net assets end 2013.

FAMI is the fund manager of seven mutual funds, including the only exchange trust fund (ETF) in the country today.

The First Metro Investment Corp. (FMIC) is the majority stakeholder of FAMI, with the Catholic Education Association of the Philippines (CEAP) and Marist Brothers Foundation as minority stakeholders. FMIC is one of the country’s leading investment institutions and a member of the Metrobank Group.

The FAMI-managed mutual funds falls under the generic title of Save and Learn (SAL).

FAMI executive vice president Hector C. de Leon said that the minimal growth of the mutual fund assets is due to the public investor’s cautious stance after a strong 2013, and a more volatile first quarter this year.

“The fixed income market remains flat while the equities is catching up with the rest after a cautious start,” De Leon said.

FAMI takes care of a nearly 26,000 individual accounts.

Top choice remains the mutual fund invested in equity market, or the SAL equity fund (SALEF), with amounts reaching P7.68 billion. Investors that invested in the SALEF some five years ago can boost of gains of up to 25 percent.

Majority of fund managers agree that the 6,800-level of the Philippine Stock Exchange Index (PSEi) has proven firm in the face of sellers. “We are now looking at the PSEi challenging anew the 7,000- to 7,200-level, although it may not be strong enough to break the all-time high of 7,500,” the FAMI executive vice president added.

Second largest is the SAL fixed income fund (SALFIF) with investments worth P3.2 billion. Fixed income or bond funds are attractive to the conservative market as it does not offer any or very little volatility. However, the returns are likewise conservative to modest.

Placements made in 2013 are estimated to see their investments earn in the vicinity of 13 percent.

The SALBF or the balanced fund is third largest with investments worth P2.56 billion. Placements made and held since  2009-2010 are seen to earn return of 22 percent.

The balanced fund is a mix of equity and fixed income investments, often regarded as the “almost the best of both worlds.”

The ETF is likewise seen to be slowly acquiring more investors as its net assets are worth P857 million. An ETF is a mutual fund listed at the PSE wherein placements can be transacted or treated like shares of stock. One of the benefits of investing in an ETF is that an investor can redeem in a day or two similar to average gains or losses in the stock or equity market.

Meanwhile, the money market mutual fund or SALMMF reflected investments worth P212 million. It is often referred to as another alternative to the special deposit account (SDA).

The SAL Global Opportunity Fund (GOP), the dollar-denominated fund investing in a diversified portfolio of fixed income instruments issued by foreign and local entities, stood at a valuation of P148 million.

One Wealthy Nation (OWN) Fund Inc., the sixth fund, is a balanced mutual fund that invests in dividend yielding stocks and good quality bonds allowing investors to earn from both capital growth and potential dividend income. So far, it reflects assets worth P54 million.

Investing in mutual funds is an alternative investment platform for the retail or consumer market, similar to the unit investment trust fund (UITF). It does not require huge amounts for its initial investments as well as succeeding placements.

It varies from the orientation of the fund manager, but the lowest minimum initial investment is usually P5,000 with succeeding place of P1,000.