FAMI mutual funds grow to P13.86 B

MANILA, Philippines - First Metro Asset Management Inc. (FAMI) has reported a 19.5-percent increase in assets under management (AUM) of the five mutual funds under its watch. 

From P11.59 billion at the start of February this year, it ballooned to P13.86 billion as individual and institutional investors are becoming more comfortable with placing their investments in the country’s mutual funds. 

FAMI is an asset manager and subsidiary of the First Metro Investment Corp. (FMIC), a member of the Metrobank Group of Companies.

FAMI executive vice president and chief operating officer Hector de Leon said that investors were migrating from the deteriorating special deposit accounts (SDAs).

“Investors are moving to mutual funds, the stock market, real estate, UITFs (unit investment trust funds), and insurance. These are positive developments,” De Leon added. 

The assets represent the five mutual funds overseen by FAMI, four of which fall under the generic family of Save and Learn mutual funds (SAL).

These are the Save and Learn Fixed Income Fund (SALFIF), Save and Learn Equity Fund (SALEF), Save and Learn Balanced Fund (SALBF), the Save and Learn Money Market Fund (SALMMF), and the First Metro Global Opportunity Fund (FMGOF). 

SALEF grew 25.6 percent from P6.48 billion at the start of the year to P8.14 billion as of end May. 

SALFIFI slightly shrunk to P2.71 billion from P2.9 billion as migrations were noted towards the equity funds. SALBF grew to P2.65 billion from P1.84 billion. 

A balanced fund is basically a mixture of fixed income and equity investments with the asset allocation depending on the performance of the two markets.

Thus in a record-setting performance of the equity markets, fund managers recommend greater allocation in the equity market. 

FMGOF, the dollar-denominated fund investing in a diversified portfolio of fixed income instruments issued by foreign and local entities, stood at a valuation of P142 million. 

Meanwhile, De Leon said mutual funds are useful in attaining many long-term financial goals.

Speaking in a recent forum, he said it was likewise important that investors knew what they were investing for “to enable you to implement the portfolio approach in personal wealth management.” 

Among the standard investment goals are education, repairs, protection, retirement and emergency fund. 

For protection, individuals investing with a long-term duration view may look at life insurance and health maintenance organizations (HMOs). 

For retirement, equity funds and investing directly in the stock market would be a good option as long as the duration outlook is long-term. 

Investing for education, balanced funds for the medium term duration. 

Bonds or fixed income funds and time deposits are best for home repair as it requires a high level of liquidity in the near term.

Emergency funds, which is highly a liquidity issue, is best placed in the money market and savings deposits.