The investment champion
FIRST METRO Asset Management, Inc. (FAMI) celebrated its 10th year last year and continues to prove its mettle as one of the best performers in the country’s mutual fund business.
During the Philippine Investment Funds Association (PIFA) Annual Awards Night last August, the outstanding performance of the First Metro Save & Learn Mutual Funds was recognized with top awards in the long-term category.
The Save & Learn Equity Fund (SALEF) was adjudged no. 1 for the 10-year category for equity funds. SALEF returned a compounded annual growth rate (CAGR) of 17.27% or a straight line growth for the last 10-years of 392%. The Save & Learn Fixed Income Fund was also awarded the first place recognition in three period categories: three-year CAGR performance of 5.95%, five-year CAGR of 8.36%; and 10-year CAGR of 7.80%.
FAMI was incorporated in 2005 by First Metro Investment Corp. It also manages and distributes Save & Learn Balanced Fund, Save & Learn Dollar Bond Fund, Inc., First Metro Philippine Equity Exchange Traded Fund, Inc., and One Wealthy Nation Fund, Inc.
While engaging in the mutual funds business, the company promotes savings mobilization and investment literacy as its advocacy by conducting seminars for teachers, private sector and government employees.
“If you look at the shareholdings in this company, 30% is owned by educational institutions, particularly the Marist Brothers Foundation and the Catholic Educational Association of the Philippines. We have been constantly giving financial and investment literacy seminars to schools, teachers, and em- ployees,” FAMI President Augusto M. Cosio, Jr. told in an interview.
He said that the company has taken advantage of the resources provided by People Management Association of the Philippines to reach out to companies for conducting literacy seminars to employees. FAMI also regularly participates in the PSE’s investor education programs. Several times a month, he added, FAMI conducts financial investment literacy seminars together with its affiliate First Metro Securities Brokerage Corp.
“The First Metro Investment Group considers investment literacy our corporate social responsibility. Our parent company and all its affiliates involve themselves in investment literacy programs,” Mr. Cosio said.
“Familiarity and understanding is what encourages people to do things. If you are not at all aware, you become averse to the products. What we are trying to inculcate to people is investing is always profitable in the long run,” he added.
FAMI’s efforts to promote investment literacy are not for naught, as they in fact have translated to increased participation in mutual funds investment, according to Mr. Cosio.
The company’s performance so far this year “has been relatively to be desired,” he said, adding that he eyes some room for more appreciation after the market consolidates. This will then lead to better investment prospects and reasonable price of the equity market.
“It is an interrelated growth picture. The industry, the equity markets and ourselves, it’s a symbiotic relationship. We cannot grow faster for example than equity markets or the capital markets,” he said. He, however, considers the development of the company’s sales force as its main growth driver. This is why it has invested so much in training its salespeople and partners, who also live up to the idea of postponed gratification in investing that the company highly values.
Saving to invest, Mr. Cosio explained, creates a cycle of savings and investments. These investments get channelled into business enterprises, which then promote economic growth.
“We think that the more we get people [to invest], the more they get convinced that investing in the country is both profitable and gratifying. Warren Buffett said investing in your country is one of the most patriotic things you can do. I believe that telling people to invest in our capital markets is encouraging them to be patriotic, which is part of nation building,” he said.
“Familiarity and understanding is what encourages people to do things. If you are not at all aware, you become averse to the products. What we are trying to inculcate to people is investing is always profitable in the long run.”