I was about to buy additional shares for my BPI Mutual Fund. The Philippine Stock Index Fund (PSIF) is so far the best performing in my portfolio. Since the PSE Index has been hitting record highs, it just follows that the PSIF is going up so well.
However, I was surprised to know that I can no longer purchase additional shares for the PSIF. I thought it was just a glitch from the online form. After several tries, the PSIF was really not an option. So I subscribed to the ALFM Growth Fund instead. It is just as good as the PSIF anyway.
Later, I found out that the PSIF and the ALFM Money Market Fund are temporarily closed. Below if the official statement from BPI.
PSIF and ALFM Money Market Fund are temporarily closed for new and additional subscriptions
Notice: The Philippine Stock Index Fund (PSIF) and the ALFM Money Market Fund are temporarily closed for new and additional subscriptions since both funds have already reached their respective Authorized Capital Stocks (ACS). This means that the funds do not have enough shares to offer to the investing public. To address this, applications for new and additional shares have been filed with the SEC and the approval processes are being expedited. In the meantime, investors may consider investing in the BPI UITF equity funds, BPI Short Term Fund, and the BPI Odyssey Peso Cash Management Fund. An announcement shall be made as soon as the temporary closure will be lifted and subscriptions to the PSIF and ALFM Money Market will again be accepted.
They ran out of shares to offer. That is why they have to close and apply for new and additional shares to sell. It just shows how many investors are putting their money on aggressive portfolios. With the the positive outlook on the Philippines economy and the investment grade rating, many investor are betting on high risk investments to gain high yields.
I share the same positive outlook for the year and probably for 2-3 more years as some analysts say. So I really hope BPI does expedite those funds because I’m joining the ride.