week 11

• Investment company


  A corporation or trust engaged in the business of investing the pooled capital of investors in financial securities
• Investment company


  • Regulated by law under Section 2 of the Republic Act No. 2629 or Investment Company Act
• Classification of investment companies

  • Open-ended fund
  • Close-ended fund
  • Exchange-Traded Funds
  • Unit Investment Fund
  • Real Estate Investment Trust (REIT)
• Open-ended fund


  A diversified portfolio of pooled investor money that can issue unlimited shares
• Close-ended fund


  A type of mutual fund that issues a fixed number of shares through one initial public offering (IPO) to raise capital for its initial investments
• Open-ended fund

  1. Available throughout the year for subscription

  2. No fixed maturity

  3. Variable corpus

  4. Execute at the end of the day
• Close-ended fund


  1. Available only during specified days for subscription

  2. Fixed Maturity (i.e. 1 to 3 years)

  3. Fixed corpus

  4. Execute in real time
• Exchange-Traded Funds (ETF)


  A pooled investment security that can be bought and sold like an individual stock
• Unit Investment Fund (UIT)


  An investment company that offers a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time
• Real Estate Investment Trust (REIT)


  Companies that own or finance income-producing real estate across a range of property sectors
• Diversification


  An investment strategy that involves spreading investment across a variety of assets or securities within a portfolio to reduce risk
• Liquidity


  • Many investment companies offer daily liquidity, allowing investors to buy or sell shares easily
• Accessibility


  • Investment companies provide access to markets and investment strategies that may be difficult for individual investors to access on their own
• Transparency


  • Investment companies are required to disclose their holdings and performance regularly, providing transparency to investors
• Bonds


  A fixed income instrument that represents a loan made by a bond investor (you) to a borrower (bond issuer)
• Equities


  Equity, stock, or a Common Share is a type of security which represents ownership in a company
• Real Estate Investment Trust (REIT)


  An investment instrument that provides returns to its investors in the form of dividends, derived from rental income of the underlying real estate assets and other income of the properties they buy, manage, and operate, and potentially through capital appreciation
• Kinds of Metrobank UITFs

  • Fund of Funds (PHP)
  • Aspire Funds (PHP)
  • Fixed Income Funds (PHP and USD)
  • Balanced and Equity Funds (PHP and USD)
  • Feeder Funds (PHP and USD)
  • PERA Funds (PHP)
• Sun Life Prosperity Funds


  • The Conservative Investor
  • Moderate Investor
  • The Balanced investor
  • The Growth Investor
  • The Aggressive Investor