Mutual Funds

[bRIX]

is your office the one near paseo center?

[financial advisor]

is your office the one near paseo center?

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Philam Financials office, the Financial Advisory Group, is at 5F Salustiana T. Dy Bldg. in Paseo cor Perea(where you have the Philam Savings Bank). The Philam Asset Management office is in 5F Philamlife L.P. Leviste St. Salcedo Vill(near the sports club).

[ric2000]

Mutual Funds are a good balanced investment for the patient investor. You do not need a broker, you can invest and save money, why pay a middle man when you do not need to. the 20% a month, if it sounds to good to be true then it is. This is probably something illegal or close to it. I would say stay away from scams.

I have been investing in funds for many years and there are no funds doing 20% a month.

use your brain, use the internet, don't use brokers or those who say they are market smart and can beat the market because over all no one is that good.

[D_Gringo]

brix....look at offshore funds.....the fees quoted below are astrinomical compared with other more realsitic ones.......1-2% max even for the more extravagent funds.....only accept a one off up front one time fee as well....

 

THere is no annual charge or maintaining fees in a mutual fund account, but there is however a SALES LOAD or ENTRY FEE whenever you invest. For the Strategic Growth Fund Fund it is 5% of your investment(both initial and additional), the Balanced Fund is 3% and Bond Fund 2%. The sales load is the cost of managing the fund. The Strategic Growth Fund has stocks in it that is why it has a higher sales load.

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[bRIX]

@D Gringo

 

i was planning to invest tommorow when i saw ur post.. what are offshore funds? and what are the extravagant funds are you referring to? thanks.

[saturn]

:uc: Money that is hard earned must be placed in a secure instrument such as time deposites. :thumbsupsmiley:

Philam Financials office, the Financial Advisory Group, is at 5F Salustiana T. Dy Bldg. in Paseo cor Perea(where you have the Philam Savings Bank). The Philam Asset Management office is in 5F Philamlife L.P. Leviste St. Salcedo Vill(near the sports club).

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[financial advisor]

:uc: Money that is hard earned must be placed in a secure instrument such as time deposites. :thumbsupsmiley:

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saturn, there are many ways to invest and there are investment tools out there that suits each INVESTMENT OBJECTIVE of a person. Time deposits is one, and so are mutual funds and uitfs. Some offer higher yields, higher risk. Now you may be a conservative investor but there are people out there who want to beat inflation and can tolerate a certain level of risk in return to earning a better yield than time deposits. And mutual funds are on of them.

[bRIX]

@financial advisor

 

what does market to market valuation mean? and how will it affect philam's mutual funds?

[financial advisor]

Mutual Funds are a good balanced investment for the patient investor. You do not need a broker, you can invest and save money, why pay a middle man when you do not need to. the 20% a month, if it sounds to good to be true then it is. This is probably something illegal or close to it. I would say stay away from scams.

I have been investing in funds for many years and there are no funds doing 20% a month.

use your brain, use the internet, don't use brokers or those who say they are market smart and can beat the market because over all no one is that good.

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In the U.S, there are types of broker's who charge commissions for the products that they recommend(if the investor gets it) AND/OR they charge a fee for simple consultation. In the Phil, the latter is not really applicable. Whether you open an mutual fund account directly with the mutual fund company or thru a representative(broker/advisor/salesperson..), the same applicable sales load will be charge to your investment. In other words, all costs of managing the fund, including commissions, have already been inputed to the sales load. Brokers of mutual funds don't actually manage the fund. They just act as salesman or distributors. The fund manager on the other hand is the one who actually do the trading of securities and as you say, "beat the market".

[financial advisor]

@financial advisor

 

what does market to market valuation mean? and how will it affect philam's mutual funds?

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To comply with the International Finance Reporting Standards(IFRS, formerly known as International Accounting Standards), all mutual funds with fixed-income portfolio must value or price the funds AT THE MARKET/CURRENT MARKET PRICE/"MARKED-TO-MARKET".

 

IFRS conversion is a global trend intended to bring about

1) higher degree of transparency

2) comparability in financial reporting(uniformity to global standards)

 

Marked-to-market valuation asseses assets on the current market price or closing market rate for that instrument. Basically, an asset is determined by the market price plus accrued interest. Any profit or loss is "booked" and the funds will start the next day with a net position This type of valuation takes into account the MOVEMENT OF INTEREST RATES IN THE MARKET. The INTEREST RATES CHANGES over time BUT the COUPON RATE(for ex. a P10,000 bond issued at 10% per annum coupon rate, 5 years maturity--->it pays a fixed 10% or P1k annually) remains FIXED after the bond is issued.

 

What is the effect of this? The key price or net position of a fixed income instrument(inside the portfolio of a mutual fund) is the relation of its COUPON vs. CURRENT MARKET OR INTEREST RATES. Meaning, when the going rate is LESS than the coupon rate, the bond's price will INCREASE above its par value. Consequently, when the going rate is MORE than the coupon rate, the bond's price will DECREASE below its par value. THESE CHANGES HAPPEN EVERYDAY and the process of pricing them daily is simply called "MARKED-TO-MARKET".

 

How does this affect the Philam mutual funds?

The Strategic Growth Fund, Balanced or Philam Fund are already currently marked-to-market because these two have equities and we all know that equities are valued at the market close. On the other hand, the Peso and Dollar Bond Fund are in preparation to be valued at the market. The tentative deadline given by SEC to all financial institutions is on Sept. 2006.

[eninen8]

@ finanacial_a

 

Aside from entry fee, what other charges do you apply?

[financial advisor]

@ finanacial_a

 

Aside from entry fee, what other charges do you apply?

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Mutual funds are really intended for midterm(2-5 yrs) and long term(5 yrs up) investors. That's why short term trading is somehow not encouraged(if you are into short term, just invest in stocks or bank products).

 

For the Philam $ and Php Bond Funds, if you redeem/sell/get partial/full of your investment LESS THAN 1 YEAR, there is a redemption fee of 1%. 1 year up, you can redeem any time w/o charges.

 

For the Strategic Growth and Philam Fund, if you redeem/sell/get partial/full of your investment LESS THAN 1 YEAR, the redemption fee is 1%. IF LESS THAN 2 YEARS(but more than 1 year), it is 0.5%. 2 years up, you can redeem any time w/o any charges.

 

Why does mutual funds, in general, charge sales load or entry fee?

The sales load is a fee paid to an investment company by a buyer of shares in a mutual fund. This covers the cost of managing the fund since you have a professional fund manager who handles the trading inside the fund's portfolio. In return, investors are entitled to investment advice from the assigned broker/advisor/agent on which fund is best for them.

[financial advisor]

Hi financial adviser,

 

Last year the equity market is really doing well in the Philippines but this year it is kind of just maintaining.  I notice that equity market is really doing well in the asian market.  Could you give

me some advice on what equity market will perform well

 

thanks

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are you interested to invest offshore?i usually don't give investment advice or solicitation thru the internet. i set up appointments w/ clients and we discuss it. anyone who is interested to invest offshore or globally, just send me a PM. Only to those serious investors.

[xxxpert]

To comply with the International Finance Reporting Standards(IFRS, formerly known as International Accounting Standards), all mutual funds with fixed-income portfolio must value  or price the funds AT THE MARKET/CURRENT MARKET PRICE/"MARKED-TO-MARKET".

 

IFRS conversion is a global trend intended to bring about

1) higher degree of transparency

2) comparability in financial reporting(uniformity to global standards)

 

Marked-to-market valuation asseses assets on the current market price or closing market rate for that instrument. Basically, an asset is determined by the market price plus accrued interest. Any profit or loss is "booked" and the funds will start the next day with a net position This type of valuation takes into account the MOVEMENT OF INTEREST RATES IN THE MARKET. The INTEREST RATES CHANGES over time BUT the COUPON RATE(for ex. a P10,000 bond issued at 10% per annum coupon rate, 5 years maturity--->it pays a fixed 10% or P1k annually) remains FIXED after the bond is issued.

 

What is the effect of this? The key price or net position of a fixed income instrument(inside the portfolio of a mutual fund) is the relation of its COUPON vs. CURRENT MARKET OR INTEREST RATES. Meaning, when the going rate is LESS than the coupon rate, the bond's price will INCREASE above its par value. Consequently, when the going rate is MORE than the coupon rate, the bond's price will DECREASE below its par value.  THESE CHANGES HAPPEN EVERYDAY and the process of pricing them daily is simply called "MARKED-TO-MARKET".

 

How does this affect the Philam mutual funds?

The Strategic Growth Fund, Balanced or Philam Fund are already currently marked-to-market because these two have equities and we all know that equities are valued at the market close. On the other hand, the Peso and Dollar Bond Fund are in preparation to be valued at the market. The tentative deadline given by SEC to all financial institutions is on Sept. 2006.

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Pare, I have an investment with Philam Dollar Bond fund. I want to encash it. Should I go to the Philam main office? I got this from a broker before.. so I'm not sure how to encash it. It's been with me for 2 years.. good returns.

[financial advisor]

Pare, I have an investment with Philam Dollar Bond fund. I want to encash it. Should I go to the Philam main office? I got this from a broker before.. so I'm not sure how to encash it. It's been with me for 2 years.. good returns. 

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Yes, you can go to the Philam office in L.P. Leviste St. or if you want I can help you. My office is at 5F Salustiana T. Dy Tower in Paseo(corner Perea). You will have to fill out redemption form and it takes T+3 days for settlement. Check issued under your name and you can encash it at Philam Savings Bank. If you want my assistance, send me a PM. If not, it is still the same process.