ATR KimEng subsidiary manages over P500M in mutual funds

The Mutual Fund Management Company of the Philippines Inc. (MFMCP), an investment management company owned by ATR KimEng Capital Partners Inc. (ATRKE Capital) and Clemente Fund Management (Asia) Ltd., continues to make in-roads in the country’s mutual fund industry.

Clemente Fund Management (Asia) is an affiliate of New York-based Clemente Capital Inc.
MFMCP is the fund manager of the Kabuhayan (Balanced) Mutual Fund, the ATR KimEng Equity Opportunity Fund, and the ATR KimEng Fixed Income Fund.

The Kabuhayan Mutual Fund is a balanced mutual fund (50- percent investments in the equity markets, 50-percent fixed-income) with a year-to-date return of 14.16 percent. This compares favorably with the performance of the Philippine Stock Exchange index (Phisix), which was up to 14.85 percent last year.
The ATR KimEng Equity Opportunity Fund was the best performing equity mutual fund last year with a year-to-date return of 21.34 percent. The ATR KimEng Fixed Income Fund was also the fifth best performing fixed income mutual fund with year-to-date return to investors of 7.38 percent.

In 2003, its assets under management (AUM) totaled around P300 million. It now manages funds totaling over half a billion pesos.

MFMCP is looking forward another good year of performance for the mutual funds market.

MFMCP president and chief executive officer Phillip Hagedorn favors the equities market.

"There are some good values in the stock market. The peso has strengthened, the business environment is getting more stable and with the 91-day Treasury bill (T-bill) at just above five percent, equities are an attractive opportunity for the first quarter of this year," Hagedorn said.

Participation in the stock market from the retail point of view is low. Thus, mutual funds (or a basket of retail accounts) is an important way for ordinary folks to participate in this equity market.

There are various minimum or initial investments deepending on the fund manager, but several accept as low as P5,000. MFMCP is precisely targeting this retail market.

"We focus on providing returns to our clients. It does not matter whether you have P5,000 or P5 million invested with us, all our clients benefit equally, relative to the amount they invested and fund they invest it, from the returns we provide," he added.

The overseas Filipino workers (OFWs) have also been participating, according to Hagedorn.

"Over 400 (from Hong Kong) are now shareholders of Kabuhayan fund. And they continue to add to their investments on a regular basis," Hagedorn added.

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