fami save learn mutual funds financial administrators of the philippines

True or False

Investing Myths

• Higher Risk• Incompatible with your goal and risk profile• Must be long-term• Could be a scam• High returns or income do not always

translate to wealth

The Highest Return, is always the Best

Investing Myths

• Risk is not just about losing money• Risk is also about not having enough in the end• Fail to meet financial goals

Better safe than sorry.

• Delayed gratification• Debt will lead to the need to sacrifice• Savings result to financial freedom

Saving and Investing means financial sacrifice.

Investing Myths

I can always start later.

What will you choose?What will you choose?a)a) P100,000.00 or P100,000.00 or b)b) P0.01 doubled everyday for 30 days?P0.01 doubled everyday for 30 days?

Who will have more at age 65?Who will have more at age 65?a)a) A 21 year old who saves P10,000 per year for 44 years at 12% A 21 year old who saves P10,000 per year for 44 years at 12%

or; or; b)b) A 31 year old saving TWICE the amount for 34 years at the A 31 year old saving TWICE the amount for 34 years at the

same rate?same rate?

• Miss-out on compounding periods• Need to save more of your income• Need to take more risk to meet goals

Investing Myths

Timing is everything.

B

S

S

SS

BB

B

• Hindsight is always 100% right

• Easier said than done "I have no idea on timing. It’s

easier to tell what will happen than when it will happen.” -Warren Buffet

• Better left to the experts

• Successful investing is not a Successful investing is not a matter of TIMINGmatter of TIMING

• ItIt’’s a matter of TIMEs a matter of TIME

Investing Myths

Income – Expenses = SAVINGS

Income – SAVINGS = Expenses

• Pay yourself first!• Higher income or yields do not result to wealth• FINANCIAL DISCIPLINE = WEALTHFINANCIAL DISCIPLINE = WEALTH

• A partnership between three institutions

1. First Metro Investment Corporation (FMIC)

2. Catholic Educational Association of the Philippines (CEAP)

3. Marist Brothers Foundation

• Asset management company

• Manages seven (7) mutual funds

• Aggregate AUM of P15 Bln

Company Profile

Fund Management Structure

Mutual Funds• Investment companies registered with the SEC.

• Investors become shareholders of the fund or funds of their choice

• Pools the money of shareholders, with the same investment objectives, through the issuance of shares.

• The resulting size of the fund allows it to invest in a basket of securities

• It is managed by full-time professionals.

Mutual Funds

Corporate Structure

SHAREHOLDERS

BOARDOF

DIRECTORS

INVESTMENTADVISOR

FUNDADMINISTRATOR

PRINCIPALDISTRIBUTOR

CUSTODIANBANK

EXTERNALAUDITOR

Pricing: Based on a fund’s Net Asset Value per Share (NAVPS)•Price of a mutual fund share•Computed and published dailyInvestment Amounts:

Mutual Funds: Valuation

5,000 - 99,999 2.0%

100,000 - 499,999 1.5%

500,000 - 1,999,999 1.0%

2,000,000 & Up 0.5%

3.0% (Max.)

1.0%

0.5%

1.0%

0.0%

SALES LOAD / ENTRY FEES

EXIT / REDEMPTION FEES< 6 Months

6 Months or more

SALEF, SALBF, SALFIF

OWNFMGOF

< $40,000

$40,000 or more

SALEF 1.875%

SALBF 1.875%

SALFIF 1.750%

OWN 1.750%

FMGOF 1.750%

MANAGEMENT FEES P.A.

Applicable Fees:

MINIMUM INVESTMENTS

INITIAL ADDITIONAL

SALEF P5,000 P1,000

SALBF P5,000 P1,000

SALFIF P5,000 P1,000

OWN P5,000 P1,000

FMGOF $10,000 $1,000

Example:

Investment Amount 100,000.00 Sales Load (1.5%) (1,500.00) Net Investment Amount 98,500.00

NAVPS 1.9700 No. of shares bought 50,000.00

PREV. SLIDE

How to Make Money in MFs

1.0000

1.5000

2.0000

2.5000

3.0000

3.5000

4.0000

4.5000

5.0000

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

NAVPS

Buy: 50,000 SharesNAVPS: 1.9700Value: P98,500

Buy: 50,000 SharesNAVPS: 1.9700Value: P98,500

Sell: 50,000 SharesNAVPS: 4.7200Value: P236,000

Sell: 50,000 SharesNAVPS: 4.7200Value: P236,000

A

B

Mutual Funds: Advantages

–Professional Fund Management–Diversification–Affordability–Liquidity–Safety (Regulation and Disclosure)–Convenience (Shareholder Services)–Daily Pricing–Tax Free

2006 Net Yield 67.58%2007 Net Yield 12.62%2008 Net Yield -30.70%2009 Net Yield 53.11%2010 Net Yield 63.37%2011 Net Yield 8.18%2012 Net Yield 27.32%2013 Net Yield -1.35%03.19.2014 7.11%CAGR 21.07%

• P7.3 Bln. AUM• Launched in October 2005• Long-term investment (5 Years or

more)• Growth Oriented• Full-equity fund• Invested in stocks listed in the PSE• Ideal for investors looking for the

capital growth opportunities of the stock market

FAMI Mutual Funds

TYPICAL PORTFOLIO MIX

Cash10%

Properties15%

Telecoms20%

Power20%

Banking10%

Transport 15% Holding Cos.

10%

Maximum Equity Exposure: 90%

• Fee Structure

FAMI Mutual Funds

-25.0%

75.0%

175.0%

275.0%

375.0%

475.0%

O-05 O-06 O-07 O-08 O-09 O-10 O-11 O-12

SALEF Vs. PSEi

NAVPS Performance Benchmark Performance

-25.0%

75.0%

175.0%

275.0%

375.0%

475.0%

O-05 O-06 O-07 O-08 O-09 O-10 O-11 O-12

SALEF Vs. PSEi


Cash10%

Bond Portfolio30%

Stock Portfolio60%


2007 Net Yield 4.07%2008 Net Yield -4.86%2009 Net Yield 45.36%2010 Net Yield 61.97%2011 Net Yield 6.62%2012 Net Yield 25.27%2013 Net Yield 1.04%03.19.2014 3.55%CAGR 16.05%

• P2.5 Bln AUM• Launched in May 2007• Long-term investment (2 to 5 years)• Moderate Returns• A balance of stocks and bond investments• Ideal for investors looking for capital

growth opportunities of the stock market tempered by the steady cash flow from fixed-income securities.

FAMI Mutual Funds


• Fee Structure

FAMI Mutual Funds

-55.0%

-5.0%

45.0%

95.0%

145.0%

195.0%

M-0

7

A-0

7

D-0

7

M-0

8

J-08

S-08

D-0

8M

-09

J-09

S-09

D-0

9M

-10

J-10

S-10

D-1

0M

-11

J-11

S-11

D-1

1

M-1

2

J-12

S-12

D-1

2M

-13

J-13

S-13

SALBF Vs. Belnded Index


-55.0%

-5.0%

45.0%

95.0%

145.0%

195.0%

M-0

7

A-0

7

D-0

7

M-0

8

J-08

S-08

D-0

8M

-09

J-09

S-09

D-0

9M

-10

J-10

S-10

D-1

0M

-11

J-11

S-11

D-1

1

M-1

2

J-12

S-12

D-1

2M

-13

J-13

S-13

SALBF Vs. Belnded Index


Cash10%

Government Securities

45%

Corporate Papers

30%

Dep. Subs.15%


2006 Net Yield 14.85%2007 Net Yield 4.07%2008 Net Yield 2.40%2009 Net Yield 5.36%2010 Net Yield 11.56%2011 Net Yield 12.34%2012 Net Yield 11.31%2013 Net Yield 18.92%03.19.2014 -1.55%CAGR 10.11%

• P3.3 Bln AUM• Launched in October 2005• Medium to long-term (6 months to 2

years)• Conservative Fund• Purely fixed-income instruments• Ideal for investors looking for reasonable

returns but are wary about market volatilities

FAMI Mutual Funds


• Fee Structure

FAMI Mutual Funds

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%O

-05

F-06

J-06

O-0

6

F-07

J-07

O-0

7

F-08

J-08

O-0

8

F-09

J-09

O-0

9

F-10

J-10

O-1

0

F-11

J-11

O-1

1

F-12

J-12

O-1

2

F-13

J-13

SALFIF Vs. HSBC ALBI


0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%O

-05

F-06

J-06

O-0

6

F-07

J-07

O-0

7

F-08

J-08

O-0

8

F-09

J-09

O-0

9

F-10

J-10

O-1

0

F-11

J-11

O-1

1

F-12

J-12

O-1

2

F-13

J-13

SALFIF Vs. HSBC ALBI


• P58 Mln AUM• Registered in April 2013• Lon-term Dividend and Growth

Balanced Fund• Long-term investment (2 to 5 years)• Annual Stock Dividend when

profitable• Ideal for investors who require

regular draw-downs to generate cash flow

FAMI Mutual Funds

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Jan-

09

Apr

-09

Jul-0

9

Oct

-09

Jan-

10

Apr

-10

Jul-1

0

Oct

-10

Jan-

11

Apr

-11

Jul-1

1

Oct

-11

Jan-

12

Apr

-12

Jul-1

2

Oct

-12

Jan-

13

Apr

-13

Jul-1

3

Oct

-13

OWN Blended Index

PSEi Blended Index (50:50) Bond Index

Cash10%

Bond Portfolio30%

Stock Portfolio60%


• Fee Structure

FAMI Mutual Funds

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000 Ja

n-09

Apr

-09

Jul-0

9

Oct

-09

Jan-

10

Apr

-10

Jul-1

0

Oct

-10

Jan-

11

Apr

-11

Jul-1

1

Oct

-11

Jan-

12

Apr

-12

Jul-1

2

Oct

-12

Jan-

13

Apr

-13

Jul-1

3

Oct

-13

OWN Blended Index

PSEi Blended Index (50:50) Bond Index

PERFORMANCE 1-YR 3-YR 5-YRTotal Returns 5.2% 31.4% 54.2%CAGR 5.2% 9.5% 9.1%

PERFORMANCE 1-YR 3-YR 5-YRTotal Returns 5.2% 31.4% 54.2%CAGR 5.2% 9.5% 9.1%

• P145 Mln AUM• Registered in December 2009• Global Balanced Fund• Ideal for investors who want

access to the market opportunities in other countries

FAMI Mutual Funds

Global Bonds45%

Asian Stocks15%

European Stocks

15%

US Stocks15%

Cash10%


150.00

200.00

250.00

300.00

350.00

400.00

450.00

J-09

A-09

J-09

O-0

9

J-10

A-10

J-10

O-1

0

J-11

A-11

J-11

O-1

1

J-12

A-12

J-12

O-1

2

J-13

A-13

J-13

O-1

3

J-14

FMGOF Benchmark

ACWI Standard (Large+Mid Cap)

S&P/Citigroup International Treasury Bond Ex-U.S. Index

BLENDED INDEX

Cash10%

Bond Portfolio30%

Stock Portfolio60%


• Fee Structure

FMGOF Benchmark

150.00

200.00

250.00

300.00

350.00

400.00

450.00

J-09

A-09

J-09

O-0

9

J-10

A-10

J-10

O-1

0

J-11

A-11

J-11

O-1

1

J-12

A-12

J-12

O-1

2

J-13

A-13

J-13

O-1

3

J-14

FMGOF Benchmark

ACWI Standard (Large+Mid Cap)

S&P/Citigroup International Treasury Bond Ex-U.S. Index

BLENDED INDEX

1 YR 3-YR 5-YR Total Return7.61% 6.04% 9.41% 62.48%

1 YR 3-YR 5-YR Total Return7.61% 6.04% 9.41% 62.48%

Transaction Options for FMGOF

FACILITY CLREARING TIME FEES REMARKS

Philippine Domestic Dollar Transfer System (PDDTS-Netting System)

1 day; end of day crediting

$29.20 (may vary with other banks) + $20 (receiving)

Application for Miscellaneous transfer

Demand Draft 30 to 45 days Depends on the amount (DST, commission, $2.50 clearing fee)

Request for Demand Draft

Corporate Check 30 to 45 days Nil Check Fund transfer via settlement account 0 Nil for M.M.

0.25% for provincial branches Minimum ADB is $500

Applications of Mutual Funds

Asset - Liability matching

Funding for future projects

Retirement Funding

Employee retention programs

Diversification of existing portfolios

Monthly Investment Program for employees

How To Build A Winning Portfolio

• Mutual funds are very useful in attaining many long-term financial goals.

• They are not a “cure-all solution” for all financial goals.

• Knowing your goals will enable you to implement the PORTFOLIO APPROACH IN PERSONAL WEALTH MANAGEMENT.

• Begin with the end in mind


OBJECTIVE: To maximize returns within acceptable risk parameters.

VUL15%

Stocks8%

Bonds25%

Time Deposit32%

Mutual Fund20%

Investment Portfolio


OBJECTIVE: To meet personal financial objectives.

Protection15%

Repairs8%

Education25%

Emergency Fund32%

Retirement20%

Investment Goals


INVESTMENT GOALS INVESTMENT VEHICLE

Goal Duration Feature Instrument

Emergency Fund Immediate Liquidity Deposits, Money Market

Home Repair Near Term Liquidity Bonds, Time Deposit

Education Medium Term Growth + Liquidity Balanced Fund

Retirement Long Term High Growth Equity Fund, Stocks

Protection Long Term Guarantee Insurance, HMO

Investing Tips

• Start Early• Know your objectives

• Long-term• Short-term

• Prioritize your objectives• Always have the right

mindset• Know your risk profile• Choose investments wisely• Always maintain balance

SALEF 15.0%SALBF 12.5%SALFIF 7.0%

YEAR-END SALEF SALBF SALFIFInitial Inv. PHP 5,000.00 PHP 5,000.00 PHP 5,000.00

1 18,771.12 18,469.36 17,814.88 2 34,635.44 33,639.51 31,530.84 3 52,929.45 50,735.68 46,213.03 4 74,043.74 70,012.89 61,931.29 5 98,431.69 91,759.96 78,760.53 6 126,619.54 116,303.93 96,781.05 7 159,218.15 144,015.15 116,078.97 8 196,936.57 175,313.02 136,746.65 9 240,597.83 210,672.48 158,883.09 10 291,157.27 250,631.33 182,594.47 15 693,113.09 543,789.72 329,061.24 20 1,535,954.97 1,087,019.57 535,965.40 25 3,307,823.74 2,095,936.50 828,547.11 30 7,037,320.61 3,972,063.43 1,242,587.49

The above table is for illustration purposes only. Projected amounts are not guaranteed. The yields of the mutual funds are subject to market conditions and

volatilities and will vary accordingly.

MONTHLY INVESTINGProjected Returns

INVESTMENT AMOUNT / MONTH

PHP 1,000.00

Accumulating Wealth via MIP

SALEF 15.0%SALBF 12.5%SALFIF 7.0%

YEAR-END SALEF SALBF SALFIFInitial Inv.

1 - - - 2 - - - 3 - - - 4 - - - 5 - - - 6 - - - 7 - - - 8 - - - 9 - - - 10 - - - 15 - - - 20 - - - 25 - - - 30 - - -

The above table is for illustration purposes only. Projected amounts are not guaranteed. The yields of the mutual funds are subject to market conditions and

volatilities and will vary accordingly.

MONTHLY INVESTINGProjected Returns

INVESTMENT AMOUNT / MONTH

Accumulating Wealth via MIP

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