INVESTMENT COMPANIES HANDOUT

Investment- an asset purchased with the expectation that it will generate income or appreciate
overtime
INVESTMENT TYPES
Investments may be in form of the following:
1. Stock investment securities indicating ownership of the assets of the company
(Ex. ANFLOCOR)
Two kinds of Stocks
COMMON STOCKS
Typical
Income depends on the growth of the
company
Has Maturity Date (return of capital)
Has voting rights

PREFERRED STOCKS
Better rights and securities
Fixed income
No Maturity Date (No return of capital)
No voting rights

2. Bonds- debt securities where investor lend money to a company. (ex. Banks)
3. Real estate investment-involves the purchase, ownership, management, rental and/or sale
of real estate for profit. (Ex. Condo investment)
4. Mutual Fund- Management of a pool of funds collected from many investors for the purpose
of investing in securities such as stocks, bonds, money market instruments and similar assets.
The money that were invested by the stockholders will be invested to other industries
5. investment linked insurance- insurance used as an investment in the company
-Depends on the investors personal goals and risk factors (ex. Philam Life)

LIST OF INVESTMENT LAWS IN THE PHILIPPINES

1. E.O. No. 226 (Omnibus Investment Code of 1987)
Regulation of Investment companies of the Philippines
2. R.A. 7042 (Foreign investment act of 1991)
An act promoting foreign investments, prescribing the procedures for registering enterprises,
doing business in the Philippines and for other purposes
3. R.A. 8799 (Securities Regulation Code)

Establishment of the Securities and Exchange Commission and mandated the registration of
securities
4. Regulations passed by the Securities and Exchange Commission pursuant to Sec. 5 of
the R.A 8799.
5. R.A. 8284 (National Internal Revenue Code) Sec. 24 (B) and (C)
-20% tax in interests
-10% tax in property dividends
-5% tax in capital gains in sale of shares of stocks not over P100,000
-10% tax in capital gains in sale of Shares of stocks over P100,000

INTERVIEWED COMPANY
Anflo Management and Investment Corporation (ANFLOCOR)
Anflo Management and Investment Corporation (ANFLOCOR) is the management company of
a homegrown group of companies which is mainly engaged in agriculture, industrial services,
and real estate and resort development.
What started as an automotive dealership company expanded and organized several other
companies and established joint ventures with top companies in the country.
Part of its expansion is the modernization of its dock, which bold and innovative move gave rise
to the existing Davao International Container Terminal, Inc. (DICT), the most modern container
port terminal in Mindanao. Offering world-class container port terminal facilities and equipment,
and driven by state-of-the-art terminal operating system (TOS), DICT, which is located at the
crossroads of major agricultural plantations in the Philippines helps ensure the global
competitiveness of Mindanaos export-grade products. DICT is a joint venture between
ANFLOCOR and Dole-Stanfilco, the leading producers and exporters of fresh Cavendish
bananas in the Philippines.

VISION STATEMENT

To be the leading management and investment company in Mindanao and thereby be a

vehicle for the sustained upliftment of quality of life in Mindanao

MISSION STATEMENT

Our stockholders are the providers of resources and capital. We will ensure optimum

returns for their investment and be responsible stewards of their assets.

Our subsidiaries and affiliates are the lifeblood of the Company. We will provide them

with professional management services and resources.

Our people are the principal resource and core drivers of the organization. We will
provide a work-life balance, wholesome work environment and opportunities for

advancement.
The communities where we operate support our operations and are our principal
advocates. We will share our blessings with them through our CSR activities and by
being good corporate citizens.
SERVICES OFFERED

ANFLOCOR manages businesses engaged in agriculture, container port terminal

operation, packaging production, real estate, trucking, resort development, food
production and services, merchandising, financing, and radio operation. It forged joint
ventures with other respected local companies to expand its operations into mall, hotel

and urban residential development.

ANFLOCOR is also in partner with the Rizal Commercial Banking Corporation
Services of RCBC

1. Personal Trust and Investment Management Services

-Living trust account
-Portfolio Management
-Estate Planning
2. Corporate Trust and Investment Management Services
-Portfolio Management
-Employee Benefit Plan
-Pre need trust
3. Rizal Unit Investment Trust Funds ("Rizal UITFs")
Rizal Peso Money Market Fund
Rizal Peso Cash Management Fund
Rizal Peso Bond Fund
Rizal Balanced Fund

 Rizal Equity Fund

Rizal Dollar Money Market Fund

Rizal Dollar Bond Fund

ISSUES INVOLVING INVESTMENT COMPANIES

1

Investment Scam
- The Securities and Exchange Commission (SEC) identified several companies doing
scam operations all over the Philippines. This issue restricts investors from investing
in firms because of fear that their investment will turn out as scam. SEC, through
several public notices warned such firms engaged in investment scams while some
are pretending to be insurance companies. Before purchasing shares of an
investment company, an investor must read all of a funds available information as

well as the most recent shareholder report.

Corruption and Inefficient Government Bureaucracy
- The Global Competitiveness for 2010-2011 stated that the evident corruption in the
country and inefficient government bureaucracy posed to be the most problematic
factors hindering business growth in the country. This statement was further
supported by the Asian Development Bank (ADB). ADB stated that the government
needs more than just systems to curb corruption; it needs its people to have more
political will and commitment to implement the needed reforms and policies for the
country. A much simpler and better procedures so as to reduce the burden on the

part of the investors and the business sectors could attract more investors.
Foreign Restrictions
List A includes limitations made by constitution or special law.
No foreign participation is allowed in

Mass media

Most licensed professional services (e.g. accountants, lawyers, engineers)

Retail trade

Cooperatives

Private security agencies

Small-scale mining

Fisheries

Rice and corn farming

25% foreign equity is allowed in

Recruitment agencies

Locally funded public works projects

30% foreign equity is allowed in

Advertising

40% foreign equity is allowed in

Resources development and utilization

Land ownership

Public utilities

Educational institutions

Financing companies

Construction

List B restricts foreign investment for reasons of security, defense, health, morals
and protection of small and medium-sized enterprises.
40% foreign participation is allowed in

Explosives

Munitions

Armaments

Dangerous drugs

Massage clinics

Gambling

Domestic market enterprises with capital less than USD 500 000, provided
enterprises don't use advanced technology

Small-scale export enterprises with capital less than USD 500 000 depleting
natural resources

60-40 rule on ownership

- Secretary of foreign affairs Albert del Rosario said the Philippines opened its doors to
international investors, but kept a business climate thats restrictive by global
standards. He also stated that there may be a need to evaluate existing statutory
economic parameters as the Philippines further redefines its international economic
policy. Foreign companies are concerned about the 60-40% foreign ownership rule.
Last year, President Benigno Aquino signed a law allowing for 100 percent foreign

ownership of banks to attract more investment.

Limited or poorly maintained roads on which to move goods, near-prohibitive
power rates and extensive red tape for setting up businesses