PARTICIPATION/SUBSCRIPTION
Mutual Funds
A mutual fund is an investment vehicle which pools money from numerous investors through issuance of shares to the public. The price of a mutual fund share is known as the Net Asset Value per Share or NAVPS, which is determined at the end of each business day. This is calculated by subtracting the fund’s liabilities from the fund’s market value divided by the number of outstanding shares.
A mutual fund's portfolio is managed by an investment manager. These funds are invested in various securities according to the policies, investment strategies and objectives of the fund.
As an investor, you will have the following benefits:
Professional Management
One of the main attractions of mutual funds is that it affords its investors, particularly the small ones, the services of full time investment managers whose job is to analyze and select investment products which would give the best possible returns to the fund and its shareholders.
Low Capital Requirement
A key advantage of mutual funds is they offer investors access to professional money management for a relatively low minimum investment.
Diversification
Mutual funds are invested in a wide array of securities that can lower overall risk without necessarily reducing returns.
Liquidity
Mutual fund shares can be redeemed at any time based on the prevailing Net Asset Value Per Share.
Safety
Mutual funds are registered with and highly regulated by the SEC. It functions within strict regulations designed to protect the interest of the investors.
Potentially Higher Returns
Because a mutual fund is managed as a single portfolio, it is able to take advantage of certain economies of scale and has access to investments with higher returns.
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| Participation Date | January 1, 2005 |
| NAVPS for January 1, 2005 | 1.0152 |
| Total Amount Invested | P 1,000,000.00 |
| Front-End Load / Fee (0.75% of Amount Invested) | 7,500.00 |
| Total Net Amount Invested (1,000,000 - 7,500) | 992,500.00 |
| No. of Shares (992,500 / 1.0152) | 977,639.87 shares |
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REDEMPTION
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| Redemption Date | June 15, 2005 |
| NAVPS for June 15, 2005 | 1.0496 |
| No. of Shares | 977,639.87 |
| Redemption Amount (No. of shares x NAVPS) | 1,026,130.81 |
| Net Gain (1,026,130.81 - 1,000,000) | 26,130.81 |
Mutual Funds:
Prudentialife Fixed Income Fund
ATR KimEng Equity Opportunity Fund