Money Market Funds in the Market

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Money Market Funds in the Market

If you want to be little more conservative with your investments, try money market funds

By Heinz Bulos

Money market funds are relatively conservative and low-risk vehicles invested in highly marketable and “near-cash” instruments like short term government securities, money market securities, and other highly marketable fixed-income instruments. As such, you should expect relatively low returns than bond, equity, and balanced funds. But they are much more liquid with short holding periods, if any. Nevertheless, they are a good alternative to bank deposits if you want to park your money temporarily.

There are around 10 money market funds in the market today – couple of mutual funds while the rest are unit investment trust funds. As always, you have to consider factors such as historical returns, fees, minimum initial investment, additional contributions, holding period, and management.

1. ATR KimEng Money Market Fund

Established in 2004, the ATR KimEng Money Market Fund (formerly known as the ATR KimEng Fixed Income Fund) is designed to seek a return through investments in fixed income securities of Philippine and non-Philippine companies and debt obligations of the Government of the Republic of the Philippines and its instrumentalities.

Launch Date: November 1, 2004

Minimum Participation: P5,000

Min. Additional Participation: P1,000

Min. Holding Period: 12 months

Net Asset Value Per Unit (NAVpU): 1.0822

ROI % (Year-on-Year): -5.19

ROI % (Year-to-Date): -5.13

Telephone No.: 896-3734

Fax No.: 890-3827

E-mail: ird@mutualfund.com

2. BDO Peso Money Market Fund

Banco De Oro Universal Bank

The BDO Peso Money Market Fund is a peso-denominated fixed-income fund suited for corporate and individual clients who are risk averse and are looking for safe investments with yields higher than those of savings and time deposit accounts. This fund aims to preserve capital and generate income from low risk investments by investing the Fund in fixed-income securities with a portfolio weighted average life of not more than one year.

Launch Date: April 01, 2005

Minimum Participation: P100,000

Min. Additional Participation: 0

Min. Holding Period: 0 days

Management Fee: 0.50 % p.a.

Early Redemption Fee: none

Other Fees: none

Net Asset Value Per Unit (NAVpU): 1,249.812700

ROI % (Year-on-Year): 4.4956

ROI % (Year-to-Date): 4.4033

Telephone No.: 702-6613 ; 702-6608

Fax No.: 687-2932

Contact Person: Ana Maria C. Angel; Maita F. Galvez

E-mail: angel.anamaria@bdo.com.ph; galvez.marita@bdo.com.ph

3. BPI Short Term Fund

Bank of the Philippine Islands

The BPI Short Term Fund is a money-market fund that provides the investors with a “near-cash” investment and higher earnings from a diversified portfolio of short-term government securities, money market securities, and other highly marketable fixed-income instruments. It is ideal for those who are looking to invest over the short to medium-term, to finance interim projects like a home renovation or a family vacation.

Launch Date: Monday, April 04, 2005

Minimum Participation: P50,000

Min. Additional Participation: P10,000

Min. Holding Period: 7 days

Management Fee: 0.75% p.a.

Early Redemption Fee: .25% of the NAVPU

Other Fees: Custody fee

Net Asset Value Per Unit (NAVpU): 119.790000     

ROI % (Year-on-Year): 3.5261

ROI % (Year-to-Date): 3.4813

Telephone No.: 845-5041

Fax No.: 845-5088

Contact Person: Lea Angeline A. Maranan

E-mail: llalmerol@bpi.com.ph

4. Infinity Peso Money Market Fund

EastWest Banking Corporation

A peso-denominated money market unit investment trust fund that aims to provide investors with enhanced yields for their short-term liquidity needs by investing in a diversified portfolio of short-term, highly liquid fixed-income securities, term deposits, and other money market instruments. Portfolio duration is one year or less.

Launch Date: March 01, 2007

Minimum Participation: P100,000

Min. Additional Participation: P100,000

Min. Holding Period: 0 days

Management Fee: 2% p.a.

Early Redemption Fee: None

Other Fees: P100 per withdrawal; custody fee

Net Asset Value Per Unit (NAVpU): 1,076.573300

ROI % (Year-on-Year): 3.8712

ROI % (Year-to-Date): 3.7940

Telephone No.: 815-0233; 830-8718; 830-8742

Fax No.: 818-3210

Contact Person: Erika Joy A. Salvador

E-mail: easalvador@eastwestbanker.com, sbgonzales@eastwestbanker.com

5. Metrofund Starter

Metropolitan Bank and Trust Co.

The Metrofund Starter is designed to provide better returns with necessary liquidity that meets your need for wealth building, invested in a diversified portfolio of fixed income securities. The Fund is a peso-denominated money market fund suited for clients who have an investment horizon of at least six months, can tolerate a low degree of risk and are focused on preserving the value of their investment.

The Fund aims to preserve the value of its participants’ investments by avoiding extreme fluctuations in the fund’s market value by investing in a diversified portfolio with a weighted average duration of less than one year consisting of high yielding peso-denominated short-term fixed income securities, instruments, and cash/cash equivalent.

Launch Date: April 04, 2005

Minimum Participation: P100,000

Min. Additional Participation: P50,000

Min. Holding Period: 30 days

Management Fee: 1 % p.a.

Early Redemption Fee: 50% of income

Other Fees: 0.015% custody fee p.a.

Net Asset Value Per Unit (NAVpU): 1.294873

ROI % (Year-on-Year): 4.4456

ROI % (Year-to-Date): 3.9950

Telephone No.: 580-9538, 580-9537, 580-9552 to 59, 858-8012 to 14

Fax No.: 858-8016

Contact Person: Alfred F. Amahan, Laarnie R. Cancio

E-mail: tbg@metrobank.com.ph; alfred.manahan@metrobank.com.ph; laarnie.cancio@metrobank.com.ph

6. PBCom Signature Trust Fund

Philippine Bank of Communications

The Signature Trust Fund is a UITF that aims to provide investors an alternative outlet that offers earnings and liquidity, encouraging them to be an active player in the domestic capital market, supporting its growth.

Launch Date: August 04, 2005

Minimum Participation: P10,000

Min. Additional Participation: P10,000

Min. Holding Period: 30 days

Management Fee: 0.5 % p.a.

Early Redemption Fee: 0.125%

Other Fees: 0.025% custody fee p.a.

Net Asset Value Per Unit (NAVpU): 126.192300

ROI % (Year-on-Year): 3.7021

ROI % (Year-to-Date): 3.6609

Telephone No.: 830-7041/ 830-7044/ 830-7047/ 815-4802

Fax No.: 818-2668

Contact Person: Raul C. Diaz;Ana Perez; Julie Go

E-mail: rcdiaz@pbcom.com.ph; amoperez@pbcom.com.ph; jngo@pbcom.com.ph

7. RCBC Dragon Fund

RCBC

The Dragon Fund is a peso denominated money market UITF product which pools together funds of various investors for investment and reinvestment in a relatively short term portfolio of fixed income instruments comprised mainly of government securities, time deposits and other tradable securities. It is suited to conservative investors who are looking for moderate and relatively stable returns over the next 90 days but want immediate access to their funds when they need it.

Launch Date: March 28, 2005

Minimum Participation: P25,000

Min. Additional Participation: P5,000

Min. Holding Period: 30 days

Management Fee: 0.5 % p.a.

Early Redemption Fee: .125%

Other Fees: .025% custody fee p.a.

Net Asset Value Per Unit (NAVpU): 1.216763

ROI % (Year-on-Year): 4.3404

ROI % (Year-to-Date): 4.2578

Telephone No.: 878-3315 to 16; 894-9006; 894-9514; 894-9870

Fax No.: 878-3377

Contact Person: Marinelle G. Ocampo; Karen D. Malabanan

E-mail: trust_marketing@rcbc.com

8. RCBC Savings Molave Fund

RCBC Savings Bank

Symbolized by the strength and stability of a Molave Tree, the Molave Fund is a low-risk investment product ideal for those who want to maximize the earning potential of their funds. The Molave Fund makes use of only fixed-income investments with shorter maturities and it may not invest more than 15% of its market value in any single entity.

Launch Date: April 25, 2005

Minimum Participation: P10,000

Min. Additional Participation: P5,000

Min. Holding Period: 30 days

Management Fee: 1 % p.a.

Early Redemption Fee: .125%

Other Fees: 0.02% custody fee p.a. + P25.00 / transfer

Net Asset Value Per Unit (NAVpU): 1.214300

ROI % (Year-on-Year): 4.0620

ROI % (Year-to-Date): 3.9818

Telephone No.: 632-9589; 633-2908

Fax No.: 633-9845

Contact Person: Rhia / Merit / Cris

E-mail: trustdept@rcbcsavings.com

9. SB Secure Peso Fund

Security Bank

A peso-denominated UITF that provides investment opportunities to clients looking for above-average returns and invested only in highly marketable fixed-income securities, scrutinized for their good credit quality.

Launch Date: July 01, 2005

Minimum Participation: P50,000

Min. Additional Participation: P10,000

Management Fee: 1% p.a.

Early Redemption Fee: 0.5%

Other Fees: None

Min. Holding Period: 30 days

Net Asset Value Per Unit (NAVpU): 1.195544

ROI % (Year-on-Year): 3.9415

ROI % (Year-to-Date): 0.0639

Telephone No.: 867-6788; 888-7371; 888-7372

Fax No.: 810-1091

Contact Person: Leo V. de la Cruz; John C. Tabije

E-mail: ldelacruz@securitybank.com.ph; jtabije@securitybank.com.ph

10. Sunlife Prosperity Money Market Fund

Sun Life Financial

Sun Life Prosperity Money Market Fund was the first money market mutual fund in the Philippines. It is also the first absolutely no load fund in the country, meaning there are no fees to pay upon investing.

Launch Date:

Minimum Participation: P10,000

Min. Additional Participation: P5,000

Min. Holding Period: 7 days

Net Asset Value Per Unit (NAVpU): 1.0977

ROI % (Year-on-Year): 2.07

ROI % (Year-to-Date): 2.03

Telephone No.: 849-9888

Fax No.: 849-9744

E-mail: sunlink@sunlife.com

[SIDEBAR]

Our Pick

So which money market fund to invest in? Based on one-year performance and fees charged, we picked the BDO Peso Money Market Fund as our “Best Value for Money” award, as it beat all other competing funds and offers the lowest fees with no holding period.