I got a PM on another forum asking me to comment on the mutual fund companies I've covered in the roundup series. These are (in order of appearance in my posts) Sunlife, FAMI, Philam, and Philequity. Here are my thoughts on each company:
Sunlife
The Good: Sunlife has a long company history that might make it more attractive to risk-averse investors. It also has low minimum investment amounts. If investing for the long-term, sales load charges can go as low as zero.
The Bad: Of the companies listed here, it has the highest annual fee at 2%.
Conclusion: Good for long-term investors looking for moderate returns and zero sales loads.
FAMI
The Good: FAMI was the best performing Philippine MF company of 2011. Minimum investment amounts are low.
The Bad: To some, the phenomenal performance could signal that FAMI is less conservative in its investments than others. There is no "zero sales load" option.
Conclusion: Good for investors who believe that high returns are repeatable.
Philam
The Good: Philam has the lowest annual fee at 1.5% (tied with Philequity). In the long term this could have a significant effect on returns. Good performance in 2010.
The Bad: No "zero sales load" option.
Conclusion: The low annual fee could be attractive to long-term investors, especially those who believe that returns are largely a matter of luck (such as myself)*.
Philequity
The Good: Philequity has an index fund available. In my opinion this is the best type of fund. It also tied with Philam for lowest annual fee.
The Bad: There is no "zero sales load" option. Also, the minimum investment amounts for the index fund are very high: P250,000 for the initial investment and P50,000 for subsequent investments. The index fund also carries a hefty front-end sales load at 5%.
Conclusion: If there were a "zero sales load" option and the minimum investment amounts were lower, this would be the best MF company in the roundup. As of now, however, their offerings are not very attractive.
Stay tuned for more! Check out these links:
Mutual Fund Company Roundup 1: Sunlife and FAMI
Mutual Fund Company Roundup 2: Philam
Mutual Fund Company Roundup 3: Philequity
* An interesting read: Luck vs. Skill
Showing posts with label sunlife. Show all posts
Showing posts with label sunlife. Show all posts
Thursday, March 3, 2011
Saturday, January 8, 2011
Mutual Fund Company Roundup 1
I'm going to do a comparison of the different Philippine mutual fund companies. The information on each company will include the types of fund available, minimum investment amounts, sales load, annual fees, and contact information as well as my sources. I will do my best to ensure the information is complete and accurate, but please verify all information before investing.
Let's start with Sunlife and First Metro.
Sunlife Financial Philippines
First Metro Asset Management, Inc.
Roundup Part 2: Philam Asset Management Inc.
Roundup Part 3: Philequity
Roundup Part 4: ATR KimEng
Let's start with Sunlife and First Metro.
Sunlife Financial Philippines
Fund types offered:
Bond Fund
Balanced Fund
Equity Fund
Money Market Fund
Government Securities Fund
Dollar Bond Fund
Dollar Balanced Fund
Minimum initial investment:
P5000 for peso funds
$2000 for dollar funds
Minimum subsequent investment:
P1000 for peso funds
$500 for dollar funds
Sales load:
Option A:
2% front-end load (plus VAT)
0% back-end load
Option B:
0% front-end load
5% back-end load plus VAT if the investment is redeemed within the first year
4% back-end load plus VAT if the investment is redeemed within the second year
3% back-end load plus VAT if the investment is redeemed within the third year
2% back-end load plus VAT if the investment is redeemed within the fourth year
1% back-end load plus VAT if the investment is redeemed within the fifth year
0% back-end load plus VAT if the investment is redeemed beyond the fifth year
Annual Fee
2%
Website:
E-mail:
phil_prosperity@sunlife.com
Phone Number:
8499888
First Metro Asset Management, Inc.
Fund types offered:
Fixed-income Fund
Balanced Fund
Equity Fund
Money market Fund
Minimum initial investment
P5000
Minimum subsequent investment:
P1000
Sales load:
For equity, balanced, and fixed-income funds:
Front-end load
Php5,000.00 > Php100,000.00
2.00%
Php100,000.00 > Php500,000.00
1.50%
Php500,000.00 > Php2,000,000.00
1.00%
Php2,000,000.00 and above
0.50%
Back-end load
Redemption or exit fee is applicable if redemption or withdrawal is made within the first six months or 180-days of investment. Redemption or withdrawal made beyond six months or 180-days, redemption or exit fee is waived.
For money-market fund:
Php5,000.00 > Php100,000.00
1.00%
Php100,000.00 > Php300,000.00
0.50%
Php300,000.00 and above: Waived = 0.00%
Back-end load
Redemption or exit fee is applicable if redemption or withdrawal is made within the first month or 30-days of investment. Redemption or withdrawal made beyond one month or 30-days, redemption or exit fee is waived.
Annual Fee
1.75% for equity, balanced, and fixed-income funds
1% for money-market fund
Website:
E-mail:
FAMI@firstmetro.com.ph
Phone Number:
8912860 to 65
Roundup Part 2: Philam Asset Management Inc.
Roundup Part 3: Philequity
Roundup Part 4: ATR KimEng
Subscribe to:
Posts (Atom)