- CLIMBS Share Capital Equity Investment Fund Corporation (CSCEIF) is an open-end, diversified investment company (mutual fund) that invests mainly in Philippine equities, using an “Index Plus” strategy (majority PSEi component stocks, small portion of non-PSEi picks expected to outperform).
- CLIMBS Investment Management and Advisory Corporation (CIMA) — Investment Manager, Principal Distributor, and Administrator. CIMA is owned by CLIMBS Life and General Insurance Cooperative.
- Minimum initial investment: Php500.00, inclusive of sales fee and VAT (per SEC Resolution No. 753, s. 2018).
- Yes — the Regular Subscription Plan (RSP): commit to Php300 or Php500/month for at least 60 months, after meeting the Php500 initial minimum. Interrupting the plan or redeeming during the 60 months converts you to a “regular” investor (subsequent minimum becomes Php1,000).
- Submit a redemption request with your Confirmation Receipt/stock certificate and valid ID. Payment is made within 7 business days. No redemption fee from CIMA, but the stock transfer agent charges Php20 + VAT per redemption.
- No. It’s a high-risk fund aimed at medium-to-long-term capital growth. NAVPS can go up or down — past performance doesn’t guarantee future returns (see Risk Factors).
- Any person of legal age, or duly organized corporation/partnership, regardless of nationality (subject to their own jurisdiction’s legal restrictions).
- A mutual fund is legally known as an Investment Company and is regulated by the Securities and Exchange Commission under the 1960 Investment Company Act.
- A mutual fund is essentially a financial pool where many investors put their money together to buy a large, diversified collection of stocks, bonds, or other securities.
- Instead of you buying shares of just one or two companies, your money is combined with thousands of other people’s money. A professional portfolio manager then uses that massive pool to buy hundreds of different investments at once.
- Being corporations, investors buy shares in a mutual fund. The daily price is called Net Asset Value Per Share (NAVPS). A mutual fund’s price is published every banking day in two newspapers of general circulation. Individual mutual funds also publish their daily NAVPS in their redemption centers and, if applicable, in their websites
- Mutual funds are classified according to the assets they invest in. An equity mutual fund invests primarily in stocks of companies listed in an organized stock exchange.
- A bond mutual fund invests primarily in the long-term debt issues of the governments and corporations. Bonds promise to pay interest either quarterly or semi-annually and return the principal upon the maturity of the bond.
- A balanced fund invests primarily in a combination of stocks and bonds. A money market fund invests primarily in fixed income instruments that have a maturity of 1 year or less.
- Mutual funds can also be classified as to their entry and exits fees, otherwise known as loads, the country where they are invested as well as the currency that they are denominated.
- CLIMBS is coming up with its first mutual fund in 2015 to be called the CLIMBS Share Capital Equity Investment Fund (CSCEIFC) Corporation. The CLIMBS-IMA will employ an Index +TM strategy whereby the fund will invest primarily in the component stocks of the Philippine Stock Exchange Index with some non-index stocks to provide potential outperformance.
- Like any other investment, mutual funds also bear risk. As shown in the previous risk/return spectrum, the risk in investing increases as the potential return also goes up.
- A mutual fund minimizes the risk by diversifying its portfolio. This simply means that a mutual fund will invest in a number of instruments and /or stocks. The funds and securities of a mutual fund are also held by an independent custodian, which is a commercial bank of good repute authorized by the Bangko Sentral ng Pilipinas to perform custodian functions.
- For his part, the investor minimizes his risk by holding his investments in mutual funds over the long-term. As a rough rule of thumb, long-term would mean 5 years and longer. This is why mutual funds are ideal for people planning for building their home, the college education of their children and retirement
- Mutual funds are marketable. An investor can have his investments redeemed at any time at the prevailing NAVPS. And by law, the mutual fund must return the money of the investor within seven banking days from the receipt of the redemption request.
