Cocolife Fixed Income Fund: A Smart Investment Strategy

Cocolife Fixed Income Fund, Inc. (CFIFI) is an open-ended mutual fund incorporated in the Philippines. It is managed by Cocolife Asset Management Company, Inc. (CAMCI), a wholly-owned subsidiary of Cocolife, which also operates as the principal distributor of the fund. CFIFI is an income-oriented mutual fund that aims to generate regular and steady interest income while preserving capital and maintaining liquidity through a diversified portfolio of investments. The fund has received recognition for its superior returns, including the Best Fixed Income Fund at the International Finance Awards. CFIFI offers an accessible way to invest, with a minimum investment requirement of P5,000, and additional investments can be made for as little as P1,000.

Cocolife Fixed Income Fund: An open-end mutual fund

Cocolife Fixed Income Fund, Inc. (CFIFI) is an open-end mutual fund incorporated in the Philippines. The fund seeks to provide regular interest income, consistent with its policy to preserve capital and maintain liquidity of its investments. It does this through a diversified portfolio of securities and 25% of the fund's net asset value.

Cocolife Fixed Income Fund is managed by Cocolife Asset Management Company, Inc. (CAMCI), a wholly-owned subsidiary of Cocolife. CAMCI is one of the leading asset management companies in the Philippines and has received recognition and awards for its superior returns. The fund managers are known for their investing strategy, professionalism, and wide experience in the business.

As an open-end fund, Cocolife Fixed Income Fund offers investors the ability to redeem (sell) their shares at any time. The fund does not have a maturity date, providing flexibility for investors. The fund offers a higher earnings potential compared to savings and time deposit (TD) accounts, with an average 1-year return of 9.52% as of January 30, 2012.

The fund is income-oriented and primarily invests in a combination of corporate bonds, government securities, and other fixed-income instruments. It aims to generate regular and steady interest income while preserving capital and maintaining liquidity.

To invest in the Cocolife Fixed Income Fund, individuals can purchase shares at the prevailing price, reflected in the net asset value per share (NAVPS). A minimum investment amount may be required, and additional investments can typically be made with smaller amounts. It is important to review the fund's prospectus to understand the features, requirements, procedures, terms, and conditions before investing.

How to buy shares in the Cocolife Fixed Income Fund

Cocolife Fixed Income Fund, Inc. (CFIFI) is an open-ended mutual fund incorporated in the Philippines. It is an income-oriented fund that seeks to generate regular and steady interest income, consistent with its policy to preserve capital and maintain liquidity of its investments. The fund offers 200 million common shares with a par value of 1 peso per share.

• Understand the fund: Before investing, it is important to understand the features, requirements, procedures, terms, and conditions of the fund. You can do this by reviewing the fund's prospectus, which is likely available on the Cocolife website or from the company directly.
• Determine the share price: To invest in the fund, you need to buy shares at the prevailing price, known as the net asset value per share (NAVPS). The share price may be available on the Cocolife website or through a financial advisor.
• Meet the minimum investment requirements: Cocolife Fixed Income Fund may have a minimum initial investment requirement, which is typically set at P5,000, with additional investments starting at P1,000.
• Purchase the shares: You can purchase shares directly from Cocolife Asset Management Company, Inc. (CAMCI), the investment manager and principal distributor of the fund. You may be able to invest through their website or by contacting their office:

• Website: [email protected]
• Address: 8th Floor Cocolife Building, 6807 Ayala Avenue, Makati City 1226

• Be aware of fees: When buying into a mutual fund, there is typically a fee known as a front-end load, sales load, or entry fee. This fee can range from 1% to 5% of the investment amount. There may also be an annual management fee, such as the 2% annual fee for the Cocolife Fixed Income Fund.
• Monitor your investment: You can monitor the performance of your investment by checking the NAVPS on the Cocolife website or through financial portals like Bloomberg. Remember, the value of your investment will fluctuate daily based on the market value of the underlying securities.

The risks of investing in the Cocolife Fixed Income Fund

Cocolife Fixed Income Fund, Inc. (CFIFI) is an open-ended mutual fund that seeks to generate regular and steady interest income, consistent with its policy to preserve capital and maintain liquidity of its investments. While this fund has won awards for its superior returns, there are still risks involved with investing in any mutual fund.

Firstly, fixed-income funds do not guarantee fixed returns. This means that there is a possibility of losing money. Although historically, good-performing fixed-income funds have shown positive returns over the past five to ten years, there is no assurance that this will always be the case. The value of your investment in the fund will fluctuate daily, depending on the market value of the underlying securities.

Secondly, investments in fixed-income funds are not insured. While the funds are regulated by the government, there is no insurance coverage like the PDIC insurance offered on bank deposits. To protect investors' money, the fund's assets are held by a third-party custodian, and there are restrictions on where the funds can be invested.

Additionally, when buying into a mutual fund, there is usually a front-end load, sales load, or entry fee charged, which can range from 1% to 5% of the investment amount. Similarly, when redeeming or withdrawing your money, there may be a redemption charge, back-end load, or exit fee imposed, typically ranging from 1% to 5% of the proceeds. These fees can eat into your investment returns.

Finally, while the Cocolife Fixed Income Fund has a diversified portfolio of securities, there is still a chance of losses. The fund invests in a combination of government securities, corporate bonds, and other fixed-income instruments, which are subject to market risks and economic conditions.

It is important for investors to carefully consider these risks and understand the fund's prospectus, including its investment policies, terms, and conditions, before deciding to invest in the Cocolife Fixed Income Fund or any other mutual fund.

Advantages of the Cocolife Fixed Income Fund over other investment funds

Cocolife Fixed Income Fund, Inc. (CFIFI) is an open-end investment company and income-oriented mutual fund that has a lot to offer investors. Here are some advantages of investing in CFIFI over other investment funds:

Steady Interest Income

CFIFI seeks to generate regular and steady interest income for its investors. This is achieved through a diversified portfolio of corporate bonds, government securities, and other fixed-income instruments. The fund has a proven track record of consistently yielding positive returns since its inception and is rarely affected by market volatility compared to other bond funds.

Capital Preservation

One of the key goals of CFIFI is to preserve capital. The investment manager employs a prudent selection process, choosing a diversified portfolio of high-grade fixed-income securities and equity securities to minimize risk and protect the investor's principal investment.

Professional Management

Investors in CFIFI benefit from professional investment management. The fund is managed by Cocolife Asset Management Company, Inc. (CAMCI), a wholly-owned subsidiary of Cocolife, which is known for its investing strategy, professionalism, and experience in the industry. CAMCI has received recognition and awards for its superior returns.

Liquidity

CFIFI maintains the liquidity of its investments, allowing investors to convert their investments into cash by redeeming their shares at any time, in accordance with the provisions of the Investment Company Act and the redemption policies of United Fund, Inc.

Low Minimum Investment

CFIFI offers a low minimum investment of PHP 1,000 to start, making it accessible to a wide range of investors. Subsequent investments can be made for as low as PHP 500.

The historical performance of the Cocolife Fixed Income Fund

Cocolife Asset Management Company, Inc. (CAMCI) is a wholly-owned subsidiary of Cocolife and is the Investment Manager and Principal Distributor of the Cocolife Fixed Income Fund. The fund is an open-end mutual fund incorporated in the Philippines.

The Cocolife Fixed Income Fund is an income-oriented mutual fund, which seeks to generate regular and steady interest income, consistent with its policy to preserve capital and maintain liquidity of its investments. It does this through a diversified portfolio of corporate bonds, government securities, and other fixed-income institutions.

The fund has received recognition and awards from international and local award-giving bodies, including Thomson Reuters Lipper Fund and the Philippine Investment Funds Association (PIFA). It was also awarded Best Fixed Income Fund at the International Finance Awards.

According to data from the Philippine Investment Fund Association, the best-performing bond mutual fund earned an average annual return of 8.46% over the past five years, while the average annual return for all bond funds for the same period was 5.91%.

While historical performance is not a guarantee of future results, the Cocolife Fixed Income Fund has demonstrated strong and consistent returns, making it a viable option for investors seeking to grow their money through a fixed income fund.

Frequently asked questions