PhilStar Feature 2010

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Money Market Association of the Philippines (MART)

Monday, November 15, 2010 N-1

My warmest greetings and congratulations to the mem-bers and officers of the Money Market Association of thePhilippines as you hold 13th Money Market ConsciousnessWeek this 15th-21st of November 2010.

Through the years, you have accordingly exhibitedyour commitment to playing a key role in boosting eco-nomic growth, raising the ante in this industry to globalstandards.

I laud you for consistently giving quality service to theneeds of your members, embracing the importance ofeffective policies and procedures, and e choing the Aquino

administrations pursuit for transparency. May you remain as dynamic, responsive andsteadfast as you were all through these years.

Rest assured that I share your commitment in promoting Philippine economicgrowth. I see it as a continuing partnership of further stressing our efforts to improveevery Filipinos lives.

Again, Congratulations! Mabuhay kayong lahat!

CESAR V. PURISIMASecretary, Department of Finance

On behalf of the Bangko Sentral ng Pilipinas, I wishto extend my warmest greetings to the Money MarketAssociation of the Philippines (MART) on its 39th YearAnniversary and the celebration of the 13th Money MarketConsciousness Week!

The BSP is cognizant of MARTs efforts to support thecountrys economic development by remaining true to itscommitments of promoting a robust and well-functioningdomestic debt market. This years theme MART 39: Stay-ing Ahead in Innovation, Education and Professionalism toFuel Investments and Growth highlights the importance o fremaining proactive and dynamic in the face of an increasingly challenging financialenvironment. We vote that in the past year, MART has made significant steps in settingforth professional trading practices, promoting ethical standards, and ensuring inves-tor protection and education. By doing this, MART has laid the foundation for greatertransparency and therefore, greater confidence, in our financial markets.

We likewise commend the dedicated officers and staff of MART for your commitmentto professional excellence. We hope that your organization will continue to play an activerole in pursuing initiatives that will improve the state of our markets at the same timemaintaining market integrity. As you reach another milestone, the BSP look forwardto strengthening its partnership with you in keeping our financial markets healthy andvibrant in line with the pursuit of financial stability.

Congratulations and more power!

AMANDO M. TETANGCO, JR.Governor, Bangko Sentral ng Pilipinas

Best wishes from the Securities and Exchange Com-mission to the Money Market Association of the Philippines(MART) on the commemoration of its 39th anniversary.

Now in its 39 years of existence, MART continues tobe a vital element in building and maintaining a soundlocal debt market as it continues to espouse competencyfrom among its members, some of whom have becomecaptains in the finance industry. Its ability to work with theCommission on issues affecting the market despite differ-ences at times, is also a testament to the professionalism

that abounds within the organization.The promotion of competency and professionalism within its ranks has served the

organization well in the various bull and bear runs that both the local and foreign marketshave experienced through this period. There is no doubt that remaining faithful to thesevalues will carry MART to new heights in the succeeding years.

Again, we wish MART and its members all the best.

FE B. BARIN

Chairperson, Securities and Exchange Commission

Greetings and congratulations to the Board of Directorsand Members of the Money Market Association of the Phil-ippines (MART) on the occasion of your 13th Money MarketConsciousness Week and 39th Founding Anniversary.

As you celebrate your anniversary, let me take cog-nizance of MARTs contribution to the development anddeepening of the interest rate markets. MART has been anable and willing partner of the Bureau of Treasury (BTR)in achieving its broad mandate of efficiently managing thefinancial resources of the Republic.

In its long and fruitful history, the MART leadershiphas been at the fore in partnering with the BTR, in fostering the development of marketinstruments as well as in introducing technological changes in trading and deliverychannels to achieve greater efficiencies. These efforts have led to significant positivecontributions to the robust and active interest rate market we have today.

We are fortunate to have worked together in squarely facing the challenges of recentyears which, in no small measure, minimized the impact of the global financial andeconomic crisis on our ec onomy. The tailwinds of this crisis have abated. This shouldprovide the impetus for us to move forward, albeit at a measured pace, towards morereforms in the financial markets. We at the BTR look forward to again partnering withthe MART in pursuing our common goals for a sustained healthy financial env ironment.

We share in your success! Cheers and Mabuhay!

ROBERTO B. TANTreasurer of the Philippines

Bureau of Treasury

It is with pride that I congratulate the Money MarketAssociation of the Philippines (MART) as it celebratesits 39th Foundation Anniversary and 13th Money MarketConsciousness Week.

The MART is an organization of bank and non-bankfinancial institution that I take special cognizance of andthat is close to my heart because as one of the pioneers inInvestment Banking in the Philippines, I was tasked by theCentral Bank to craft the Articles of Incorporation and By-Laws of the Money Market Association of the Philippines,having been an investment banker in the early part of my

career before joining government to an elective position and later appointed as Ministerof Trade and Chairman of the Philippine Commission on Government Reorganization.

Over the years, the MART has been proving professional and standardized tradingpractice guidelines and has assisted in the development of a vigorous domestic debtmarket that has, to a considerable extent, supported critical capital requirements fornational financial market growth and development.

As the vice chairman of the Committee on Banks and Financial Intermediaries ofthe House of Representatives, I have supported legislative enactments that sought topromote, enhance and further develop the money markets in the country, particularlythrough the comprehensive revision of the Central Bank Charter.

Let me again, reiterate my continuing support to the Money Market Association of thePhilippines and it is my sincere hope that the MART will be the self-regulatory organization(SRO) of the Treasury Bills and Commercial Paper Markets in the co untry, as it rightfullydeserves to be so, given its track record and accomplishments, for almost four decades.

Congratulations on the milestones that you have accomplished in the developmentof the financial markets in the Philippines and may I extend my best wishes to the MARTand to its officers and members.

LUIS R . VILLAFUENTECongressional, Third District, Camarines Sur

13th Money Market Consciousness Week November 15 -21 2010

Messages

During its long and colorful history,the Association of Banks, InvestmentHouses, and other financial intermedi-aries has responded to the challengesposed by a constantly changing finan-

cial and economic landscape. It hasproven to be an able partner of regu-lators and other market participantsin alleviating the effects of domesticand global market disruptions andturmoil.

The money market crisis in the 80sdue to the Dewey Dee fiasco, the stand-still of the markets after the Philippinedebt restructuring post Ninoy AquinoAssassination, and more recently theglobal financial and economic crisis are

but some of the events that the MART,through its leadership and members,has navigated through, working withtogether with the Bangko Sentral ngPilipinas (BSP), the Securities and

Exchange Commission (SEC), the De-partment of Finance (DOF), and theBureau of Treasury (BTR), to ensure thecontinuity of the money markets forthe benefit of the investing public.

Out of these challenges, emergeda stronger and more vibrant interestrate market that continues to grownot just in terms volume but in termsof products and delivery systems duein part to MART s advocacy for astronger partnership and interactionamong regulators, involved govern-ment agencies such as the BTR, andits member financial intermediaries.It also continues to uphold its mis-sion of being a key participant in theeconomic progress of the country bydriving the development of the interestrate markets.

The Money Market Association ofthe Philippines, Inc. is a non-stock,non-profit corporation organized toprovide an institutional medium byand through which the membershipcan collectively assist and cooperatewith one another, the National Gov-ernment and its appropriate agenciesand instrumentalities in the promotion,development, expansion and regula-tion of a free and open market fordebt, debt-securities and debt-relatedinstruments and products.

On its 39th convention themedMART at 39: Staying Ahead in Innova-

tion, Education, and Professionalism toFuel Investment and Growth, MARTis focusing on efforts to uplift financialthe countrys financial industry.

Joan Policarpio, MART Presidentand a Director at Deutsche Bank AGManila, expressed the Associationsdesire to continue being a partner innation building through the financialmarkets. We believe that the Associa-tion has achieved significant strides inthe past in developing the money mar-

kets. But there is a lot of work that stillneeds to be done in terms of involvingthe general public about our marketand how they can participate moremeaningfully. In addition, to achieveparity with our neighbors in terms ofproduct offerings we need to innovatewhile maintaining the highest level ofprofessionalism in delivering servicesto our public and upholding best mar-ket practices

Bringing Financial Knowledgeto the Public

More involvement of the gen-eral public in the money markets willdeepen and strengthen the financialindustry. However it is imperative forthis public to gain a sufficient degreeof financial literacy for them to benefitfrom their participation. The MART

has been at the forefront in this effort.As part of their ongoing series of

financial literacy campaign, MART willhold a financial literacy seminar to thestudents of the University of Cebu aspart of its annual convention to be heldin the city. This year, it has conductedseminars on increasing understand-ing the interest rate markets includingAdvance Financial Statement Analysisand Advance Economics Seminar,Fixed Income and Interest Rate Swap

Seminar, Market Reading Seminar,and Basic Derivatives among others.MART also conducts open forums to awide variety of investors, from simplehousewives to professionals in variousindustries.

Innovation, professionalism inkeeping the industry stronger

This year, MART, with the activecooperation of the BSP, achieved amilestone in its almost 40 year history,with the development of the Code ofEthics covering the financial marketsof the Philippines.

Working among its members andother industry players, MART arrivedat common values and best practicesthat serve as a code of reference formembers. The code is envisioned toachieve the highest standards of pro-

fessionalism and integrity, which willredound to the benefit the investingpublic.

Technical expertise and a sophis-ticated menu of products benefit themarkets but fair and transparent deal-ings with clients, professionalism andintegrity, these values, basic as theyare, sustain and ensure the growth ofthe market. MART and its memberswill continue to uphold these values.Ms. Policarpio emphasized.

MART at 39:Staying Ahead in Innovation, Education, andProfessionalism to Fuel Investments and Growth

EXECUTIVE COMMITTEE

PresidentJOAN G. POLICARPIO

DirectorDeutsche Bank - Manila Branch

Vice PresidentMARIQUITA L. AGENASenior Vice President

Metropolitan Bank & Trust Company

SecretaryJOSELITO RICARDO G. NAZARIO

SVP/TreasurerPhilippine Veterans Bank

TreasurerHORACIO E. CEBRERO, IIIEVP/Treasury Group HeadPhilippine National Bank

2009 Past PresidentPAUL RAYMOND A. FAVILA

DirectorCiti, N.A.

BOARD OF DIRECTORS

DALMACIO D. MARTINSenior Vice PresidentBanco De Oro Unibank, Inc.

ANTONIO V. PANEREVP/Treasurer

Bank of the Philippine Islands

FELIPE MARTIN F. TIMBOLSVP/Treasurer

Bank of Commerce

MARY LOURDES T. UYVice President

Allied Banking Corporation

ERVIN PAOLO S. BELENManager

Multinational InvestmentBancorporation

ROBERTO JUANCHITO T. DISPOEVP/Treasurer

First Metro Investment Corporation

MANUEL ANDRES D. GOSECOSVP/Treasurer

East West Banking Corporation

CAREL D. HALOGVice PresidentLandbank of the Philippines

JOSE EMMANUEL U. HILADOEVP/TreasurerRizal Commercial Banking Corporation

The Money MarketAssociation of the

Philippines (MART)

celebrates its 39thfounding anniversaryamidst the challenges

of the new economicorder brought about

by the global economicand financial crisis.

f e a t u r e s @ p h i l s t a r . c o m . p h


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N-2 MONDAY, NOVEMBER 15, 2010

INTEREST RATE DERIVATIVES COMMITTEE(From left) Joel Caniza, RCBC, Coco Martin, BDO, (Chairman), Faye Del Rosario, Citi,N.A.,Paul Favila, Citi, N.A., Joan Policarpio, Deutsche Bank, Rino Gomez, Tradition, DonnaMay Pascual, BPI, Raul Pedro, SBC.

MONEY MARKET COMMITTE(From left) Robs Sy, Citi, N.A., Malou Barrameda, BPI, Mike Calleja, BPI (Chairman), ReyFernandez, BPI.

FIXED INCOME COMMITTEE(From left) Toffee Topacio, UBP, Yumyum Delfino, Deutsche Bank (Chairman), Mike Calleja,BPI, Faye Del Rosario, Citi,N.A., Jill Singian, BPI, Paul Favila, Citi, N.A.

PROFESSIONAL MARKETS OVERSIGHT(From left) Coco Martin, BDO, Mike Calleja, BPI, Paul Favila, Citi, N.A. (Chairman), YumyumDelfino, Deutsche Bank.

Money Market Associationof the Philippines (MART)

Penthouse PDCP Bank Centre, V.A. Rufino cornerL.P. Leviste Sts., Salcedo Village, Makati CityTel. Nos. 813-7479 / 894-0148 Fax: 813-2571E-mail : [email protected]: www.mart.com.ph


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N-3MONDAY, NOVEMBER 15, 2010

The Money Market Association of the Philippines

(MART) celebrates its 39th Founding Anniversary and

13th MART Consciousness Week.

Over the years, MART, through its Board of Directors

and Members, has endeavored to keep true to the ideals

and aspirations of the Associations founders. Foremost

among these is serving the public with the highest

dedication and professionalism, all in the interest of

contributing to the countrys development.This year MART has chosen the theme Staying Ahead

in Innovation, Education and Professionalism to Fuel Investments and Growth.

True to its ideals and aspiration.

We aspire to provide the investing public an understanding of the financial

markets in the hope that with more knowledge about the market, its dynamics,

and products, they, the public we serve, benefit more meaningfully. Thus we

conducted and will continue to provide venues and programs to enhance our

investing publics ability to understand our financial markets.

We recognize the basic but essential elements in sustaining the growth of

public patronage of the markets. Thus we imbue to our Members the importance

of maintaining the highest degree of professionalism in dealing with our public,

with full transparency and dedication. To bring this to its fruition, the MART,

with the cooperation and support of the Bangko Sentral ng Pilipinas (BSP),

for which we are deeply appreciative, developed a Code of Ethics to govern

our activities. An important milestone in our Associations long history, as

this Code encapsulates the essence of true service. As a supplement to the

Code, a work in progress is the Handbook of Trading Conventions which

compiles and standardizes the trading conventions covering different treasury

products. Included is a Guide on Trading Practices targetted to clarify different

interpretations on certain trading practices and lay down the trading rules asper best global market practice

Aside from these ancillary programs, MART continues its endeavor, through

and with the Bangko Sentral ng Pilipinas (BSP), the Bureau of the Treasury

(BTr), the Securities and Exchange Commission (SEC), and other market

participants to achieve reforms in the banking industry, particularly in the

interest rate markets, in response to the challenges brought on by a rapidly

changing financial and economic landscape. All in our desire to contribute to

our Nations development.

We shall continue with our mission as we forge ahead, aware of the

challenges and opportunities in the coming years.

JOAN G. POLICARPIO

President, Money Market Association of the Philippines

Message


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MART LIST OF INCORPORATORSManuel P. AlbertoVictor S. BarriosAriel T. Batacan

Manuel Q. BengsonRamon F. Chanyungco

Jose J. CunagDelfin M. DimagibaOctavio V. EspirituAugusto C. Jayme

Jorge Eduardo B. NavarraSilvestre M. Punsalan, Jr.

Antonio P. SundiangFrancisco M. Tuazon

Luis R. VillafuerteJaime M. Yulo

MONEY MARKET ASSOCIATION OF THE PHILIPPINES

PAST PRESIDENTSYEAR1973 Victor S. Barrios1974 Manuel P. Alberto

1975 Jaime M. Yulo1976 Octavio V. Espiritu1977 Josue A. Camba, Jr.1978 Arsenio M. Bartolome1979 Jorge B. Navarra

Ramon A. Albert1980 Manuel A. Bengson1981 Peter B. Favila1982 Alberto S. Villarosa1983 Vicente B. Castillo1984 Rogelio R. Cabunag1985 Carmelo S. Vertido1986 Rolando A. Castro1987 Emilio S. De Quiros, Jr.1988 An De Liu1989 Gregorio A. Delfino1990 Danilo A. Alcoseba1991 Reynaldo S.J. Feliciano1992 Enrico S. Cruz1993 John E. Huang1994 Ricardo L. Fernandez1995 Ursula A. Alano

1996 Benedicto Jose R. Arcinas1997 Cesar C. Santos, Jr.1998 Antonio V. Paner1999 Rolando R. Avante2000 Jose Arnulfo A. Veloso (Jan. 1 to June 30)2000 Erwin S. Mutuc (July 1 to Dec. 31)2001 Erwin S. Mutuc2002 Roberto Juanchito T. Dispo2003 Rabboni B. Arjonillo2004 Asterio L. Favis, Jr.2005 Pedro M. Florescio, III2006 Dino Rudyardo F. Gasmen2007 Sergio G. Edeza2008 Joselito Ricardo G. Nazario

- January 1 to May 20, 20082008 Paul Raymond A. Favila

- May 21, 2008 to December 31, 20082009 Paul Raymond A. Favila


MART VISION/ MISSION/ VALUES

VISION

To be the acknowledged prime mover in the

development of the interest rate markets and

responsive to the needs of its members and publics.

MISSION

Our mission is to be a key instrument in thedevelopment of the local interest rate markets to

be at par with global standards, contributing to

economic growth. In pursuit of our mission, we

commit to our stakeholders the following:

To our members:

We will serve as the institutional medium in

addressing their collective needs in view of the

changing financial environment

To our regulators:

We will actively participate in formulating relevant

policies and procedures.

To the investing public:

We will protect and educate the investing public byupholding ethical standards, transparency and use

of best practices.

OUR VALUES

Professionalism

Upholding the highest standards of competence in

the industry.

Integrity

Maintaining high moral standards and ethics

Pro-activity

Being forward looking & initiating actions

Social responsibility

Sensitive to public interests and contributing to theupliftment of society

Dynamism

Ability to anticipate and respond to change

Commitment

Determination in the pursuit of the associations

vision and mission


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MART

BOARD OF ADVISERS

Ursula A. Alano

Asterio L. Favis, Jr. Erwin S. Mutuc

Ricardo L. Fernandez Benedicto JoseR. Arcinas

AB Capital & Investment Corporation

AFS Philippines, Inc.

Allied Banking Corporation

Amalgamated Investment Bancorporation

ANZ Banking Group, LTD.

Asia United Bank

Asiatrust Development Bank

Banco De Oro Unibank, Inc.

Banco Filipino Savings & Mortgage Bank

Bank of America, N.A. - Manila Branch

Bank of China Limited, Manila Branch

Bank of Commerce

Bank of the Philippine Islands

BDO Private Bank, Inc.

China Banking Corporation

Chinatrust (Phils.) Commercial Bank Corporation

Citi, N.A.

Citibank Savings, Inc.

Citystate Savings Bank, Inc.

Deutsche Bank, AG - Manila Branch

Development Bank of the Philippines

East West Banking Corporation

Export & Industry Bank

First Metro Investment Corporation

HSBC

ICAP Philippines, Inc.

ING Bank, N.V. Manila Branch

JP Morgan Chase Bank, N.A.

Land Bank of the Philippines

Malayan Bank Savings & Mortgage Bank

Maybank Philippines, Inc.

Metropolitan Bank & Trust Corporation

Multinational Investment Bancorporation

Pentacapital Investment Corporation

Philippine Bank of Communications

Philippine Business Bank

Philippine Commercial Capital, Inc.

Philippine Health Insurance Corporation

Philippine National Bank

Philippine Postal Savings Bank, Inc.

Philippine Savings Bank

Philippine Trust Company (PHILTRUST)

Philippine Veterans Bank

Planters Development Bank

Premiere Development Bank

Producers Savings Bank Corporation

RCBC Savings Bank

Rizal Commercial Banking Corporation

Robinsons Savings Bank

Security Bank Corporation

Standard Chartered Bank

State Investment Trust, Inc.

Sterling Bank of Asia, Inc.

The Bank of Tokyo -Mitsubishi UFJ, Ltd. (Manila Branch)

The Royal Bank of Scotland

Toyota Financial Services Phils., Corporation

Tradition Financial Services Philippines, Inc.

Tullett Prebon Philippines, Inc.

UCPB Savings Bank

Unicapital, Incorporated

Union Bank of the Philippines

United Coconut Planters Bank

United Overseas Bank - Philippines

Vicsal Investment, Inc.

Money Market Association of the Philippines

2010 Member Institutions

MART WEEKCOMMITTEE(From left) Erick Dones,PVB, Gigi Wong, BDO,Gidget Real, MART, JojoDispo, FMIC (Chairman),Rey Montalbo, FMIC,Bernice Nobleza, FMIC,Ervin Belen, MIB.


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MONEY MARKET CONSCIOUSNESS WEEK

PROGRAMMEOF ACTIVITIES15-21 November 2010

NOVEMBER 15, MONDAY

6:00 MART Anniversary Mass at InterContinental Hotel Ballroom

6:30 Money Market Consciousness Week Kick-Off Cocktails

NOVEMBER 16, TUESDAY

8:30 A.M. Radio Station Interview Saksi sa Dobol B (594 AM)

Anchorman: Mike Enriquez

Guest: Mr. Roberto Juanchito T. Dispo, MART Past President

9:30 A.M. TV Guesting at Mornings at ANC

Guest: Ms. Joan Policarpio, MART President

NOVEMBER 17, WEDNESDAY

12:30 P.M. Press Luncheon with EJAP/BSP Press Corp.

(round table discussion)

MART Board of Directors

Venue: Manila Hotel

2:00 P.M. Forum on Creating Wealth Through Common Sense for Common Investors

Venue: Yuchengco Institute for Advanced Studies, RCBC Tower

Speaker: Mr. Augusto Cosio Jr., President, First Metro Asset Management, Inc.

NOVEMBER 18, THURSDAY

9:00 A.M. Briefing for Regulators/Trading Room Visit (BSP, BTr, SEC, PDIC, OIC)

1:00 P.M. Campus Briefing in Cebu Financial Literacy University of Cebu

Speaker: Mr. Ervin Paolo S. Belen, Manager, MIB

NOVEMBER 19, FRIDAY

2:00 P.M. Economic Update and Investment Outlook for Businessmen/Cebu Clients

Casino Espanol, Cebu

Speakers: Mr. Roberto Juanchito T. Dispo, EVP, FMIC

Mr. Ervin Paolo S. Belen, Manager, MIB

6:00 P.M. Convention Proper at Crimson Resort

Speaker: Dr. Emilio Antonio, Jr., UA & P

Elections for the 2011 Board of Directors

9:00 Brokers Night at Azure Pool Bar

NOVEMBER 20, SATURDAY

9:00 P.M. Fun Night at Score Sports Bar, Crimson Resort

MART @ 39: Staying Ahead in Innovation, Education and Professionalism to

Fuel Investments and Growth


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COMMITTEE ON SELF REGULATION,ETHICS AND STANDARDS(From left) Martin Timbol, BOC, Paul Reyes, BOC, Rino Gomez,Tradition, Yumyum Delfino, Deutsche Bank, Ricky Cebrero, PNB(Chairman)

COMMITTEE ON ELECTION(From left) Don Javillonar, Planters Bank, Gray Tacda, PCCI(Chairman), Jun Alvarez, Amalgamated.

MEMBERSHIP COMMITTEE(From left) Beth Clutario, BPI, Gray Tacda, PCCI, Tiffany Cua, Citi,N.A, Jojo Dispo, FMIC (Chairman), Rey Montalbo, FMIC, JennieAlano, Robinsons Bank, Don Javillonar, Planters Bank, BerniceNobleza, FMIC.

FELLOWSHIP AND SPORTS COMMITTEE(From left) Oliver De Goma, AMSTEL, Joric Nazario, PVB (Chairman), GidgetReaL, MART, Alvin Antonio, RCBC, Jane Canada, Planters Bank, Joy Gallega,Tradition, Erick Dones, PVB, Don Javillonar, Planters Bank, (inset) ReeseGaerlan, ICAP.

COMMUNICATIONS COMMITTEE(From left) Raul Tan, RCBC, Chesa Ibarra, RCBC, Toto Hilado,RCBC (Chairman) Chino Copuyoc, BPI.

EDUCATION COMMITTEE(From left) Carel Halog, Landbank (Chairman), Rino Gomez,Tradition, Tiffany Cua, Citi, N.A., Peter Bautista, FMIC.

CONVENTIONCOMMITTEE(From left) Joric Nazario, PVB(Chairman), Jerrick Ramos, BPI,Bing Barbasa, China Bank, KitAgena, MBTC, Roree Manguerra,PBCom, Gidget Real, MART, ErickDones, PVB. (Inset) Iris Gonzales, Ayl Olao, MBTC.

FINANCIAL LITERACY COMMITTEE(From left) Joan Policarpio, Deutsche Bank(Chairperson),Kit Agena, MBTC.


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for conservative investors to consider conservative invest-ments such as fixed income instruments (e.g. governmentsecurities and time deposits).

Diversify Your Investments and Investments Con-straints

As the old adage goes, Dont put all your eggs in onebasket. It is an unsound investment practice to invest allthe assets into the stock market, especially when the market

becomes unfavorable. Investors should cut their investmentsto different assets such as corporate bonds, time deposits andgovernment securities so that they never find themselveslosing everything on a single bad day at the market.

Stay Informed and Educate Yourself.Having an understanding of the basic principles of

investing and the available investment products will helpinvestors reach their goal. There arenumerous seminars, short-courses,

books and reputable websi tes thatcan help equip investors make betterinvestment decisions.

Be Aware of possible investmentscams and fraud

An investment scam is a fraudu-lent investment operation that paysreturns to investors from their ownmoney or money paid by subsequentinvestors rather than from any ac-tual profit earned. These investmentscams are also referred to as Ponzior Pyramid schemes and should beavoided completely. To help ensurethat their investments are protectedand sound, the following pointsshould be followed:

A. Absence of Regulatory Oversightand Audit.

Companies which offer investment

opportunities in the Philippines areregulated or licensed by a corre-sponding regulatory body. Regula-tory bodies such as the Securitiesand Exchange Commission (SEC),Bangko Sentral ng Pilipinas (BSP) andInsurance Commission (IC) monitorthe soundness and lawfulness of thedifferent institution for the safety ofthe investing public. Furthermore, asa precautionary measure, investorsshould take into consideration pos-sible affiliation of a company withan external auditor. Auditors helpin providing protection for investors

because they examine transact ions,review internal controls, accounting

procedures and financial reportingsystems of a company. Unsound andquestionable investments are eithernot audited or have obscure externalauditors providing inaccurate and

biased presentation of the companyand its products.

B. Avoid investments with BigPromises

If its to good to be true, then itprobably is. There is no safe invest-ment that will provide an investorhigher returns over a short periodof time. Any investment that prom-ises unusual high returns should beavoided. Even if all the key people in

your new investment check out, thinktwice before jumping in. Ask yourselfif you understand really under-stand how the investment works.If you dont understand how the in-vestment generates the returns that itpromises, dont invest your money. Itdoesnt matter if friends and familytell you theyve already invested andgotten their money back they couldsimply be early investors in an invest-ment scam or Ponzi scheme.

The pointers mentioned above serveas constant reminders to all kinds of in-vestors no matter how much investmentexperience they have. These allow theinvestor to be disciplined in making in-

vestment decisions and, at the same time,protect oneself from investment scams.Personal investing is a long-term

journey and investors should educatethemselves constantly. It is never toolate for anyone to start investing. Itis also not necessary to win in everyinvestment. Not everyone can be orneeds to be. Investors just need to beprudent and get started.

Investment Guide Invest with a PurposeOften times many people make the mistake of think-

ing I am investing to make money. Of course everyoneinvests to make money, but that is not the primary pur-pose. Each investor has their own unique purpose wheninvesting. The purpose could be to fund their retirement,

save for a big ticket purchase such as a house or collegefunding. Knowing what kind of purpose or goal will helpdetermine the type of investments that would be appropri-ate for every investor.

Determine your Risk ToleranceEach investor has their own unique risk tolerance

depending on their investment time frame and financialstatus. Investors must be able to assess and balance theirown risk profile and financial goal. It is more appropriate

The thought of investing can be scary and

vague to most investors. Often times, inves-

tors are unsure on where to start while some

are scared that their hard-earned funds might

get lost on investment scams. A set of in-

vestment guidelines and reminders can helpinvestors in reaching their financial goals.

Coupled with the discipline to follow these

guidelines, it serves as a roadmap for i nves-

tors to keep them focus on their goals and

protect their hard-earned savings. Below are

some key points that all investors should take

into consideration in making an investment

decision:

Account Manager: CORAZON J. REYES

PhilStar Feature 2010

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