MANILA FAME - March 2013

Im Realy a FAN :) 

PISObilities Cebu- Seminar

MOST AWAITED, PISObilities in CEBU! Register NOW! 50% 

Early Bird Discount is available. Contact 09178088857 for 

more info, April 20, 2013

FAMILY FINANCE Summer Workshop

It’s summertime! Parents and kids are now choosing what summer activities to enroll in or where to go for a family vacation. Why don’t you consider including this useful family bonding activity this summer? Book your family’s journey to Financial Happiness! Attend FQ: A Workshop On Family Finance by the Faustos on April 27, 2013, 1:00 – 5:30 pm at the Seameo Innotech, Commonwealth Ave. (near UP Ayala Technohub). You will hear from both the parents and the children as they share their valuable experiences about saving, investing, aligning core values with what they do with money, and many more! Limited slots available, reserve now by sending email to mary rose fausto or text to 0917-5395770.

For bookings done through TGFI, 10% of ticket price shall be donated to the TGFI Fund. Book now! 

How to compute retirement

Have you every wonder how much capital you need to achieve to have a life wherein you will live using only the interest of your investment?

Let me share with you my Capital Table so you too can set your Target Capital that will provide your needs.

Example:

Let as assumed that your average monthly expenses is P20,000 and if you will have an investment earning 15% per annum that will fight inflation of 4%, How much capital you need?

PHP2,181,818.18

Therefore, you need to work hard today until you have 2,181,818.18 that will work hard for you to give you your monthly expense once you decided to just stay home and live a simple life.

Patriotic Investing

An article form Inquirer.com written by By Efren Ll. Cruz about an OFW question in his desire to invest his hard earn money in the stocks for his future retirement. 

I like to share it with you the article says it all. 

Question: I have been hearing about the foreign “hot money” inflows to the Philippines. What is the significance of this to local entrepreneurs and investors? Should an OFW like me grab this moment to invest in stocks as well?—Dennis from KSA

Answer: A quick definition is in order before I answer your question.  The term “hot money” refers to flows of capital from one country to another, the main purpose for which is to make profits from differences in interest rate, anticipation of shifts in exchange rates and/or a buoyant stock market. Since hot money can move very quickly, they have the potential of causing instability in the markets they come in and out of.

While a big rush of money coming into the Philippines, for example, can result in higher stock prices, it can also cause significant pressure on the peso to appreciate to the detriment of dollar earners such as the OFWs. If a huge amount of hot money flows out of the country, the reverse can happen—stock prices will drop and the peso will depreciate. These scenarios are very simplistic implications of the effects of hot money.  In reality, the impact of hot money flows can be more complex and too detailed for discussion in this article.

So, let’s focus on the other part of your question. Should you grab this moment to invest in the stock market? Let me give you a short background before I answer that question.

With the exception of 2004 and 2008, the Philippines had positive annual net foreign portfolio investments for the past 11 years ending in 2012, when the yearly net foreign portfolio investments were more than $1 billion. For six of the 11 years under review, our annual net foreign portfolio investments were at least $3 billion. We were comparable to our twin country, Thailand, and catching up with the other Asean countries.

The correlation between our net foreign portfolio investments and the PSEi is quite high. This means that when annual net foreign portfolio investments are high, there is a tendency for the PSEi to also become buoyant. The reverse can also be true.

This is not to burst your bubble but you should NOT invest in stocks only because hot money is flowing into the country. If you do, you might end up buying what the foreigners are selling.

Just like in running a business, stock investing also benefits from the first mover advantage. This means you have to do what the world’s greatest investor, Warren Buffet, does. Warren Buffet does not buy stocks. In fact, it is said that the word “stocks” is not in his vocabulary.

Warren Buffet buys companies but he will not buy just any company. He will buy those that profit regardless of what happens to the economy they are in, the direction of net foreign portfolio investments included.

When I train people on entrepreneurship, I tell them that for any company to be successful, it must have four basic departments working effectively and efficiently. These are production, marketing, human resources and finance. Warren Buffet looks at these departments in determining the value of a company. He will ask if the company has some revolutionary production technique that no other company has; if such unique production technique gives it pricing power; if the company’s product is marketed effectively; if the company is run by top notch management and a cooperative labor force, and if the company’s finances are managed optimally. Then, he will compare the value of a company with its market price. If he sees that the market price is lower than the intrinsic value, he is likely to be one of the first few to uncover this diamond in the rough. That’s the only time he will buy a company.

In a nutshell, you should be buying a company for its intrinsic value and not because a lot of people are buying it. Do not be caught up with “grabbing the moment” because that moment will pass. When it comes to investing in companies, have a long-term investment horizon. That will help you weather the ups and downs or volatility in equity investing.

As I said earlier, hot money can be destabilizing to financial markets.  That is why there is another reason why you and other OFWs should be investing in this country and it is for patriotism.  OFW remittances in 2012 amounted to over $21 billion. Imagine how much additional stability we would have if even just 10 percent of that is invested in the country’s capital markets. That is potentially another $2 billion of permanent investment that could lead to benign interest rates, a stable exchange rate and a buoyant stock market, not to mention a better financial future for the OFWs themselves.

Visit www.personalfinance.ph. There are so much more free resources there for you to benefit from, including Ya!man, a personal finance mobile app. You may also want to join EnRich, our public training on personal finance. Details for EnRich can also be found in the website.

So never mind what the foreigners are doing. It’s high time we Filipinos take the lead in determining our own destiny. After all, it is more fun in the Philippines.

(Efren Ll. Cruz is a registered financial planner of RFP Philippines, personal finance coach, seasoned investment adviser and bestselling author. For inquiries may be sent by SMS to 0917-505-0709 or e-mailed to efren@personalfinance.ph. To learn more about the RFP program, attend a free orientation on March 14, 7pm at the PSE Center. Email info@rfp.ph to register.)

How to FUND your FAMI Mutual Fund Account

If you want to learn more about investing in different instruments u can visit our FB Group TGFI The Global Filipino Investors

Thank you for Reading SHARE IT!

Mutual Fund-Performance 2005-02/2013

Last day I posted the list of all Mutual Fund Companies in the  Philippines. Now here I'm going to give you the actual performance of MF from year 2005 to 02/28/2013 through its NAVPS or net asset value per share. The NAVPS is calculated by dividing the total net asset value of the fund or company by the number of shares outstanding it is also referred to as the 'book value'

from Investopedia it is Calculated as:

So in the context of corporate financial statements of publicly traded companies like in the PSE, the NAVPS, more commonly referred to as book value per share of the company, is usually below the market price per share. The historical cost accounting principle, which tends to understate certain asset values, and the supply and demand forces of the marketplace generally push stock prices above book value per share valuations. Since we are talking about the mutual fund and publicly traded funds. Mutual Fund Companies are also publicly traded in index funds. Below is the image of MF performance in the Philippine Stockmarket now through its gain/loss.

Highlighted in yellow are to top performer in its year coverage. 

Disclaimer: Past performance doesn't guarantee future returns of your investment do your own research before investing. 

If you want to learn more about investing in different instruments u can visit our FB Group TGFI The Global Filipino Investors

thanks for reading :) 

.

Mutual Fund Companies in the Philippines

Here in the Philippines we have 4 types of Mutual Funds 

1. 1. STOCKS OR EQUITY FUNDS-all or large sum of money invested in stocks of Philippine Companies listed in PSE.
2. 2. BOND FUNDS-its is Invested in treasury notes issue by the government and commercial bonds by large corporation who issue company bonds.
3. 3. MONEY MARKET FUNDS-its like bond funds but shorter terms like 91day T-Bills.
4. 4. BALANCED FUNDS-its is invested in both stocks and bonds

Here are the mutual fund companies in the Philippines under PIFA or the Philippine Investment Funds Association listed according to the type of funds they issue.

Stock Funds
ATR KimEng AsiaPlus Recovery Fund, Inc. (USD$)
ATRKE Alpha Opportunity Fund, Inc.
ATRKE Equity Opportunity Fund, Inc.
First Metro Save and Learn Equity Fund,Inc.
Philam Strategic Growth Fund, Inc.
Philequity Fund, Inc.
Philequity PSE Index Fund Inc.
Philippine Stock Index Fund Corp.
Sun Life Prosperity Philippine Equity Fund, Inc.
United Fund, Inc.

Balanced Funds
ALFM Growth Fund, Inc
ATRKE Philippine Balanced Fund, Inc.
Bahay Pari Solidaritas Fund, Inc.
Cocolife Dollar Fund Builder, Inc. (USD$)
First Metro Save and Learn Balanced Fund Inc.
NCM Mutual Fund of the Phils., Inc
Optima Balanced Fund, Inc.
PAMI Asia Balanced Fund, Inc. (USD$)
PAMI Horizon Fund, Inc.
Philam Fund, Inc.
Sun Life of Canada Prosperity Balanced Fund, Inc.
Sun Life Prosperity Dollar Advantage Fund, Inc. (USD$)

Bond Funds
ALFM Dollar Bond Fund, Inc. (USD$)
ALFM Euro Bond Fund, Inc. (Euro)
ALFM Peso Bond Fund, Inc.
ATR KimEng Total Return Bond Fund Inc. (USD$)
Cocolife Fixed Income Fund, Inc.
Ekklesia Mutual Fund Inc.
First Metro Save and Learn Fixed Income Fund, Inc.
Grepalife Bond Fund Corporation
Grepalife Dollar Bond Fund Corp. (USD$)
Grepalife Fixed Income Fund Corp.
MAA Privilege Dollar Fixed Income Fund, Inc. (USD$)
MAA Privilege Euro Fixed Income Fund, Inc.
PAMI Global Bond Fund, Inc (USD$)
Philam Bond Fund, Inc.
Philam Dollar Bond Fund, Inc. (USD$)
Philequity Dollar Income Fund Inc. (USD$)
Philequity Peso Bond Fund, Inc.
Prudentialife Fixed Income Fund Inc.
Sun Life of Canada Prosperity Bond Fund, Inc.
Sun Life Prosperity Dollar Abundance Fund, Inc. (USD$)
Sun Life Prosperity GS Fund, Inc.

Money Market Funds
ALFM Money Market Fund, Inc.
First Metro Save and Learn Money Market Fund, Inc.
Philam Managed Income Fund, Inc.
Sun Life Prosperity Money Market Fund, Inc.

For more information of mutual funds like performance in past years you can visit PIFA.com

Mutual Funds- How it Work?

I like to share with you how Mutual Funds really works and its benefits for you as investor. When I first encounter the word mutual fund I find it hard to understand the NAVPS and pull funds etc. So I try to look some article all everything about mutual funds. Now that I understand it and trying to share to my brothers and sister or friends I just let them watch this video  from UBL Fund Managers Smart Saving TV.

So are you convince now that Mutual Funds is a good option for your hard earned life savings. Here in the Philippines the FAMI First Metro Asset Management Inc. is the number one Mutual Fund company in the country. Other form of mutual fund is UITF or Unit Investment Trust Fund. form banks.


Aral Muna Bagu Invest ~_~ thank you for reading..