HOMEWORK #2 | Group Homework

Step 1: Look for the Financial Asset assigned to your group below. Step 2: Google / Research about your assigned Financial Asset. Step 3: In a one whole yellow paper. Use the 10 Properties of Financial Asset (we discussed this in class, and are in the pages 6,7,8,9 of the CHAPTER 1 Xerox ), to evaluate your Financial Asset.
Note: 1. 2. I need to see all of the 10 Properties of Financial Assets items on your paper. Maximum of 8 sentences for each item.

FM4A
GROUP 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 FINANCIAL ASSET ALFM Euro Bond Fund BDO Dollar Bond Fund BPI Institutional UITF Gintong Sikap Secure Fund UITF Metro Balanced Fund Metro Money Market Fund Metro Wealth Builder Sun Life Prosperity GS Fund Inc Molave Fund NCM Mutual Fund of the Phils Inc Odyssey Asia Pacific High Dividend Equity Fund Odyssey Tax-Exempt Peso Fixed Income Fund Odyssey Tax-Exempt Philippine Dollar Fixed Income Fund PBCom Signature Trust Fund PNB DREAM Builder UITF RCBC Dragon Fund UITF RCBC Phoenix Dollar Fund UITF Sun Life Prosperity Dollar Abundance Fund Inc Sun Life Prosperity Money Market Fund UnionBank UBP Large Cap Philippine Equity Portfolio United Fund Inc

FM4B
GROUP 1 2 3 4 5 6 7 8 9 10 11 12 13 FINANCIAL ASSET ATR Kim Eng Asia Plus Recovery Fund ATRKE Equity Opportunity Fund BDO Institutional Cash Reserve Fund BDO Institutional Fixed Income Fund - INSTITUTIONAL (TAX-EXEMPT) BPI Short Term UITF Cocolife Fixed Income Fund Filipino Fund Inc First Metro Save & Learn-Balanced Fund Philam Managed Income Fund Inc PNB High Dividend Fund UCPB United Cash Management Fund UCPB United US$ Money Market Fund UnionBank UBP Long Term Current Income Portfolio

HOMEWORK #2 | Example
Financial Asset: SAN MIGUEL CORPORATION (SMC) ORDINARY SHARES
1. Moneyness Low in Moneyness. SMC Ordinary shares are hard to convert into cash because of its nature securities, meaning there is a high risk and time period to wait before it can be sold and converted to cash. Divisibility of 10 Shares. Based on my research, SMC Ordinary shares can be bought by the divisibility of 10s. Low Reversibility. Due to its securities-nature and Stock-exchange market fluctations, it has low reversibility because of the uncertainty and risk in trading ordinary shares in the stock exchange. No set maturity because of its nature. SMC Ordinary shares is a form of perpetual instrument. Moderately Liquid. SMC Ordinary shares are popularly traded in the Philippine Stock Exchange with moderately high volume of shares traded per day. No Convertibility. SMC Ordinary shares cannot be converted to other financial assets. Peso currency. Based on my research SMC Ordinary shares are sold and bought using peso currency. Php0.35/Share dividends per Quarter. SMC Ordinary shares usually gives its holders, Php0.35 dividends per share per quarter. And in some instances also issue special dividends. Not Complex. SMC Ordinary Shares are a simple type of Financial Asset. The Commission for selling or buying securities is at 0.25% of the gross trade amount. The Value Added Tax (VAT) is 12% of the commission. There is also a .01% charge of the gross trade amount for Securities Clearing Corporation of the Philippines (SCCP). An additional fee for selling is also computed by the product of the following: (Sales Tax = No. of shares * Price * 0.005).

2. Divisibility and Denomination 3. Reversibility 4. Term to Maturity 5. Liquidity

6. Convertibility

7. Currency

8. Cash Flow and Return Predictability 9. Complexity

10. Tax Status

/krc 6.14.2013