Why should you redeem your shares?
As you know, investing in a mutual fund is a wise, long term-investment because among all your other investment options, mutual funds typically produce the best overall long-term gains in your investment.
Remember, an investment in a mutual fund grows, or diminishes, in value on a day to day basis. If you decide to sell back (or "redeem") part of your shares, then you will get the cash equivalent of the value of your shares as of the cut-off date of the redemption (see below). The difference between how much you bought the shares and how much your redeeming the shares is your profit or loss, as the case may be.
It is usually recommended that if the current NAVPS of your share is below your original purchase price, that you should hold on to your investment and wait for the NAVPS to recover. In the long run, well-managed mutual fund NAVPS are expected to recover and grow.
At any rate, should you have a current or immediate need for funds, you may sell back ("redeem") part, or all, of your shares.
What are the procedures?
Here are the simple procedures for redeeming your FAMI mutual funds:
You may redeem your shares any banking day by contacting FAMI by phone (see contact info below) and filling up a redemption request form (indicating the number of shares you want to redeem).
The redemption request form should be faxed or forwarded to FAMI.
Additional items have to be submitted by the shareholder to FAMI before the proceeds can be released, as follows:
The original copy of the redemption request form, signed by any one of the designated signatories of the account;
The properly endorsed stock certificate(s), if issued; and
The original Confirmation Receipt.
Payments for redeemed shares shall be ready within seven (7) banking days from receipt of request for redemption.
You must bring a valid ID when claiming the redemption proceeds. In case of a representative, an authorization letter should accompany your ID and the ID of the duly authorized representative.
How is NAVPS computed when you redeem your shares?
For determining the value of a redemption, the effective NAV per share shall be the NAVPS for the same banking day when your request has been made, provided your request is submitted before the daily cut-off time of 12 o'clock noon. Redemptions made after the cut-off time shall be valued at the NAVPS on the following banking day.
For further information or inquiries, visit or contact us at:
First Metro Asset Management Inc.
18 th Floor, PSBank Center 777 Paseo de Roxas Ave. corner. Sedeno St. Legaspi Village, Makati City
Tel. nos.: (632) 891-2860 to 65
Fax no.: (632) 816-0467