Redemption of mutual funds and UITFs

FundsMart Redemption Settlement

Funds have different redemption schedules depending on the fund type and currency.

Note that starting April 1, 2022, redemption proceeds for ALFM, FAMI, PAMI, PEMI, and SLAMCI dollar funds are no longer subject to the $2 transfer fee.

Early redemption fee for redemption within the minimum holding period, if any, shall still apply.

Go to FUNDS > FUNDSMART > FEE STRUCTURE > RED STLMT to check the turnaround time for each fund.

Note that you may redeem within the holding period, but you may be subjected to an early redemption fee, which depending on the fund may range from 0.25% to 1% (+VAT) of the amount. This will be automatically deducted from your proceeds.

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Funds FAQs

Can I invest in funds if I have a Joint or In-Trust-For (ITF) Account

Mutual funds are available for all account types including joint or ITF. For Manulife UITFs, only individual accounts are allowed for now.

How do I choose what type of fund to invest in?
You have to consider your (1) objective for investing, (2) investment horizon or period of time you are willing to stay invested, and (3) risk tolerance. As a general rule, higher returns would entail you taking higher risks. 

As investor, do I get to choose the stocks or bonds that I want?
No. That will be the job of the fund manager.  As investor, you get to choose the fund according to the strategy you prefer.

Are funds guaranteed and insured?

UITFs and mutual funds are not guaranteed by the investment/trust company and not insured by the PDIC.

Do funds have a maturity date?

Funds are open-ended thus, no maturity date.

How is the NAVPS/NAVPU computed?

NAVPS/NAVPU is computed as:
                      NAVPS/NAVPU =Total Assets - Total Liabilities
                                                  Number of Outstanding Shares
 
Underlying securities of the fund are the assets while expenses such as management, custody, brokers’ fees, taxes, and other costs form part of the liabilities.

Can I place fund orders anytime?

Yes, but note that the daily order cut-off is 11:00AM. Orders received after this time shall be processed on the next business day.

When I buy funds, what NAVPS/NAVPU shall apply?

For regular peso-denominated and USD-denominated funds ordered within the cut-off, the NAVPU/NAVPS on the same day will apply. For SLWEIF, the applicable NAVPS is T+2. Note that funds will be reflected in your portfolio on this ff. schedule:

What is Benchmark? 

This is the standard where the fund’s performance is measured, and the level of return the fund hopes to achieve. For example, an equity fund’s 1-year return is 10% versus the PSEi benchmark returning 8% within the same period. This tells the investor that the equity fund is doing 2% better, therefore, exceeding expectations.

What is the minimum amount of investment for mutual funds and UITFs?

Minimum investment is as low as PHP1,000.

What are the fees I have to pay when I invest in mutual funds or UITFs?

The fees are already embedded in the NAVPS/NAVPU. The management fees you see in the Fund Profile are not charged to you directly but rather paid by the fund as whole.

Do I get voting rights for my mutual fund/UITF shares?

As a shareholder of the mutual fund, you are entitled to attend shareholder meetings and vote during elections pertaining to the management and administration of the fund.  On the other hand, UITF investors do not become shareholders of the fund, so they are not entitled to such rights.

If the companies where the fund invests in give out dividends, do I get dividends as well?

For non-income paying funds, no. All dividends received are added to the assets of the fund, possibly increasing the NAVPS/NAVPU of your investment.

For income-paying funds or income-paying feeder funds, all dividends received from companies or the target fund where the fund invests in, clients will be given an income payout either in cash or shares/units.