First Metro Asset Management Inc

How to redeem your investment

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:

  1. 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).
  2. The redemption request form should be faxed or forwarded to FAMI.
  3. 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



2 Responses to “How to redeem your investment”
  1. Michael Martirez says:

    I recently put in 10,000 Pesos in the balanced fund. I plan to do this ecery month (peso cost averaging). I just have a ffee questions amd comcerns:
    1) since i plan to put 10,000 Pesos every month, wont my tramsaction costs be too high because i will always be deducted aomtjly fee of 200 Pesos every month? Added to this there is am exit fee amd am ammual service fee. So with all these fees, will my investment atill earn? Based on the historical data that you provided, it showed that the balanced fund earns around 20-25% per annum for 5 years. Is this net of all the fees already?

    2) if i purchase NAVS in the morning at what price do i get it for? The price for the day?


  2. admin-afv says:

    Hi Michael!

    Thanks for your post and thanks for investing with us.

    1. You’re correct in saying that each of the 10,000 pesos you put monthly will be subject to a 2% entry fee and subject to an exit fee should it be redeemed within the first 6 months. The annual service fee, however, is already deducted on the computation of the NAVPS/price per share.

    The 20-25% for the past 5-6 years is gross of entry/exit fees but net of the annual service fee.
    NAVPS is computed as such:
    [Total Assets (value of all the fund placements) – Total Liabilities (annual service fee, taxes)] / Outstanding number of shares. So the yields we post per year is actually the full year performance — December 31, 2001 to December 31, 2002 for example, and is therefore net of the annual service fee.

    Therefore, the only fee you will “feel” is the entry and conditional exit fee.

    2.) If you purchase funds on a Tuesday morning, you will no longer get the NAVPS posted on Tuesday (as that’s as of Monday). You will instead get the NAVPS we will compute Tuesday afternoon, and will post Wednesday. All mutual funds compute their daily NAVPS at the end of the day when all bookings and redemption bookings are factored in .

    Hope this helps!

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First Metro Asset Management Inc