Best Philippine mutual funds of 2020

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As we bid the year goodbye, how had the mutual funds in the Philippines performed?

Just like round-up of the top mutual funds in 2019, this article is a summary of the growth story of this investment.

Mutual funds: the year 2020 in review

Our lives were upended for the most part of the year. The pandemic reached our shores, and that forced millions to put their lives on hold. The government, regardless of what political side you happen to identify with, did what had happened elsewhere: shut down the economy to combat the threat of corona virus.

The stock market also made history. The circuit breaker was activated three times during the year. (A circuit breaker is the instance when trading is stopped temporarily.)

However, the year is not without its surprises. Converge made a spectacular debut on the exchange in what has been described as the “biggest IPO ever in history.” Ayala REIT was launched as the first first Philippine real estate investment trust. Merry Mart also had received a positive welcome from investors on its IPO.

Mutual funds had to navigate amidst this very challenging environment. Of 65 funds, 34 registered a loss (to be fair, no return was posted for Sun Life Prosperity World Equity Index Feeder Fund, Inc. because it’s just been launched. More info to follow below). That’s three more than the 31 gainers while four posted double-digit growth.

Total number of funds65
Loss34
Gains31
Double-digit growth4

Indeed, one fund was successfully launched in what has been a depressing year. The Sun Life Prosperity World Equity Index Feeder Fund, Inc. was launched on July 6, 2020. It is a feeder fund that is suitable for aggressive investors who want exposure to the global market. Its target fund is the exchange traded fund ACWD LN Equity and it tries to mimic the returns of SPDR MSCI All Country World Index UCITS.

All figures in the succeeding tables are taken from PIFA. They’re accurate as of December 29, 2020, the last trading day of the local stock bourse.

10 best mutual funds in the Philippines 2020

Of the top 10 best mutual funds, there are two equities, four balanced, and four bond funds. In additions, six are invested in foreign securities.

Sun Life Prosperity World Voyager Fund ended the year with a gain of 21.75% for its investors. It is followed by ATRAM AsiaPlus Equity Fund, the Sun Life Prosperity Dollar Advantage Fund, and the PAMI Asia Balanced Fund, which make up the four funds that reported double-digit growth.

CurrencyTypeFund name1yr. Return(%)
DollarEquitySun Life Prosperity World Voyager Fund21.75%
DollarEquityATRAM AsiaPlus Equity Fund15.85%
DollarBalancedSun Life Prosperity Dollar Advantage Fund15.59%
DollarBalancedPAMI Asia Balanced Fund10.65%
PesoBondSoldivo Bond Fund8.05%
DollarBalancedSun Life Prosperity Dollar Wellspring Fund6.65%
PesoBalancedATRAM Dynamic Allocation Fund6.32%
DollarBondATRAM Total Return Dollar Bond Fund6.14%
PesoBondPhilam Bond Fund5.94%
PesoBondPhilequity Peso Bond Fund5.93%

Philippines’ best equities index mutual funds

Experts recommend index funds because they are passively managed and, depending on what they’re tracking, they try to produce the average returns of a specific market, industry, or asset.

The equities index funds registered negative returns. This is hardly surprising. The flagship Philippine Stock Exchange index was down 8.6% year on year. It dipped to 4,623.42 in March and recovered 54.4% to 7,139.71 on the last trading day.

FMETF stock has the lowest loss among all of them, which led the group posting 8.56% in the red. It is followed by the Philippine Stock Index Fund Corp. and the Philequity PSE Index Fund Inc.

Fund name1yr. Return(%)
First Metro Phil. Equity Exchange Traded Fund-8.56%
Philippine Stock Index Fund Corp.-8.61%
Philequity PSE Index Fund Inc.-8.81%
Sun Life Prosperity Philippine Stock Index Fund-8.84%
PAMI Equity Index Fund-9.21%
Philequity MSCI Philippine Index Fund-10.96%
First Metro Save and Learn Philippine Index Fund-11.39%

10 best equities funds (PH mutual fund)

Equities funds that are described here these are all actively managed funds. Generally, their fees are relatively higher than the index funds.

Below, you see Sun Life Prosperity World Voyager Fund, and Philequity Alpha One Fund led the group. Out of 16 funds, 13 are in the red and only two posted double-digit ROI (return on investment).

CurrencyFund name1yr.Return(%)
DollarSun Life Prosperity World Voyager Fund, Inc.21.75%
DollarATRAM AsiaPlus Equity Fund, Inc.15.85%
PesoPhilequity Alpha One Fund, Inc.5.38%
PesoMBG Equity Investment Fund, Inc.-2.60%
PesoATRAM Alpha Opportunity Fund, Inc.-5.03%
PesoFirst Metro Save and Learn Equity Fund,Inc.-7.72%
PesoPhilam Strategic Growth Fund, Inc.-8.76%
PesoPhilequity Fund, Inc.-9.07%
PesoUnited Fund, Inc.-9.66%
PesoPhilequity Dividend Yield Fund, Inc.-10.02%

10 best balanced funds (Philippine mutual fund)

Balanced funds are a mix of equities and fixed income. They are designed to ride on the high-risk, high-reward profile of stocks while also achieving the modest returns, comparatively lower risk that are offered by fixed income securities.

For 2020, 8 funds out of 17 registered red bottom line, 9 gained, and only two posted more than 10% returns. In this list, Sun Life Prosperity Dollar Advantage Fund is the best, and PAMI Asia Balanced Fund and Sun Life Prosperity Dollar Wellspring Fund come next in ranking.

CurrencyFund name1yr.Return(%)
DollarSun Life Prosperity Dollar Advantage Fund, Inc.15.59%
DollarPAMI Asia Balanced Fund, Inc.10.65%
DollarSun Life Prosperity Dollar Wellspring Fund, Inc.6.65%
PesoATRAM Dynamic Allocation Fund, Inc.6.32%
PesoATRAM Philippine Balanced Fund, Inc.4.24%
DollarCocolife Dollar Fund Builder, Inc.2.54%
PesoSun Life Prosperity Achiever Fund 2028, Inc.0.33%
PesoNCM Mutual Fund of the Phils.0.05%
PesoPAMI Horizon Fund, Inc.-0.39%
PesoFirst Metro Save and Learn Balanced Fund Inc.-0.49%

10 best bond funds (mutual fund)

Bond funds are funds that are invested in government bonds (debts that are issued by the republic) or in corporate bonds (debts that are issued by companies). They are considered fixed income; they earn through the interest that is paid out in fixed, periodic interval.

Out of 19 funds, 16 are gainers and 3 reported a loss.

In the Philippines, the top 10 bond funds are Soldivo Bond Fund, Inc., ATRAM Total Return Dollar Bond Fund, Inc., and Philam Bond Fund, Inc.

CurrencyFund name1yr.Return(%)
PesoSoldivo Bond Fund, Inc.8.05%
DollarATRAM Total Return Dollar Bond Fund, Inc.6.14%
PesoPhilam Bond Fund, Inc.5.94%
PesoPhilequity Peso Bond Fund, Inc.5.93%
DollarPhilam Dollar Bond Fund, Inc.5.50%
PesoPhilam Managed Income Fund, Inc.5.15%
PesoSun Life of Canada Prosperity Bond Fund, Inc.4.07%
PesoFirst Metro Save and Learn Fixed Income Fund,Inc.3.98%
PesoALFM Peso Bond Fund, Inc.3.69%
DollarPhilequity Dollar Income Fund Inc.3.42%

Best money market funds (mutual funds)

Invested in another type of fixed income instruments, money market funds hold debt issues that have a term of 1 year or shorter.

CurrencyFund name1yr. Return(%)
PesoALFM Money Market Fund3.20%
PesoSun Life Prosperity Money Market Fund2.56%
PesoFirst Metro Save and Learn Money Market Fund1.76%
DollarSun Life Prosperity Dollar Starter Fund1.48%

Conclusions

Missed the chance in earning passive income from the ones mentioned above? It isn’t too late. You can read how to invest from mutual funds? Better yet, here is how you can actually invest without paying the sales load.

Moreover, for those of you who already have an idea how they generally work and want to begin investing right away, you can reach out mutual fund companies through their contact information.

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