WHY WOULD COOPERATIVES INVEST IN MUTUAL FUNDS?: Last Part (FAST FACTS ON THE NATIONAL COOPERATIVE MUTUAL FUND OF THE PHILIPPINES

(Following is the final portion of the two-part series that serve to guide COOPERATIVES in investing in mutual funds, with question-and-answer on the National Cooperative Mutual Fund of the Philippines (NCMFP).

Q:  What type of risks are involved in investing in NCMFP?



A:   Being moderate to high in risks, NCMFP is exposed to financial risk through its financial assets and financial liabilities.  The most important components of this financial risk are credit risk, liquidity risk, and market risk.

These risks arise from open positions in interest rate which are exposed to general and specific market movements.

The risks that the Fund primarily faces due to the nature of its investments are interest rate risk and liquidity risk die to the open-end nature of the fund.


Q:   What is the minimum initial investment in NCMFP?

A.   NCMFP shares will be offered to the public based on its NAVPS or Net Asset Value Per Share, with a minimum initial investment of Ph 100,000.


Q:   What is the minimum additional investment in NCMFP?

A:   The minimum additional investment is Ph 10,000.

Q:   What is the minimum holding period?

A:   NCMFP charges redemption fees not more than 1% should the investor redeem before the stipulated minimum holding period of six (6) months.

Q:   What are the entry fees for the different amount of investments?

A:   

Investment Amount (in Php)    Sales Load   VAT (12%)


100,000 to 499,999                    3.0%             0.360%
500,000 to 999,999                    2.0%             0.240%
1,000,000 to 1,999,999              1.5%             0.180%
2,000,000 & above                     1.0%            0.120%

Q:   When was NCMFP incorporated?


A:   The company was incorporated on March 25, 2009.


Q:    Where is NCMFP engaged in?


A.   NCMFP is engaged primarily in the business of investing, reinvesting and trading in securities and the sale of its shares.


Q:   Philam Asset being the fund manager, how much is it entitled to get each day?


A:   As investment/fund manager and principal distributor, Philam Asset is entitled to 0.005% of the Average Net Value of the Fund assets, computed on a daily basis or not more than 1.8% of the Average Net Asset Value of the Fund's assets per year.


Q:   What does NAVPS stand for?


A:   NAVPS stand for Net Asset Value Per Share and is computed as the Total Assets less Total Liabilities divided by the number of outstanding shares.


       It is also important to take note that the Net Asset Value of the Fund will fluctuate with changes in the market value of the Fund's investments.  Such changes in market value may occur due to material changes in the fund and general economic conditions or interest rate policy changes.


Q:   What are the objectives of NCMFP?


A:   NCMFP aims to provide investors a steady stream of income payments through investments in a broadly diversified portfolio of fixed income securities, while preserving capital and maintaining long-term capital appreciation through investments in equity securities.


Q:   What are the documentation requirements for NCMFP investors?


A:   The documentation requirements include:


+ Client Information Sheet (CIS) for cooperative accounts.
-  Client Information Sheet (CIS).
-  Duly Certified Copy of Articles of Cooperation.
-  Duly Certified Copy of By-Laws.
-  Board Resolution or Secretary's Certificate to Invest in the Fund.
-  Board Resolution or Secretary's Certificate of the authorized signatories.
-  Latest Cooperative Annual Performance Report (CAPR).
-  Photo copy of IDs of each authorized signatory.
-Certificate of Registration from Cooperative Development Authority.


Q:  How can we redeem our investments?


A:   The investors can file their redemption request forms in any Philam Asset office.  Redemption from the NCMFP requires filling out, disclosing and presenting the following information and documents:


         -Transaction Form (Redemption Form)
         -Reason for Redemption (Monitoring Form)
         -One (1) Valid ID (for walk-in redemption)


PAMI's address:  12/F Ayala Life-FGU Center, Ayala Avenue,  Makati City 1226 Philippines.


Philam Asset Head Office tel. no. (+632) 555-4702
E-mail:  pami.marketing@aia.com


Philam Asset Call Center:  (+632) 817-PAMI (7264)
pami.callcenter@aia.com      (END)