FAQ

“Why do we still have fund managers if the financial advisor and the client also decide what happens to the fund value?

I was told before that the fund manager will take care of it and won’t let it go down.”

nakakainis lang sir na after ilang years ng paghuhulog, nung bagsak ang fund values sasabihin lipat dito lipat dun pero walang official announcement from the insurance company

or simply dapat initiative na nila yun kung nakikita na nilang bumabagsak. Eh kung sa amin inaasa ang desisyon, ano ba malay namin sa investment diba.

If you’ve been paying for years and your fund value is down, it’s normal to feel annoyed when the only advice you hear is “switch funds.”

This FAQ explains what fund managers really do, what they cannot do, and what you should ask before you switch again.

Table of contents

1. TL;DR

2. FAQ 1: Why do we still have fund managers?

3. FAQ 2: What exactly is the fund manager’s job?

4. FAQ 3: Why can funds still go down?

5. FAQ 4: Why is there no official announcement to “move everyone”?

6. FAQ 5: Who should take the initiative when performance is bad?

7. FAQ 6: What questions should clients ask?

8. Professional recommendation and next step

TL;DR

1. You choose the fund. The fund manager chooses the investments inside that fund.

2. Fund managers cannot guarantee your fund value will not go down. Markets can drop.

3. You should not be told to switch without data. Ask for benchmarks, holdings, fees, and a clear action rule.

FAQ 1: Why do we still have fund managers if the financial advisor and client decide too?

Because there are two different decisions.

Client decision

You decide which fund to use, how much risk you are taking, and whether to stay, rebalance, or switch.

Fund manager decision

Once you choose a fund, the fund manager decides what to buy and sell inside that fund, within the fund’s rules.

FAQ 2: What exactly is the job of a fund manager in an insurance company?

They manage the fund in accordance with its mandate and limits.

Common responsibilities include:

1. Buying and selling investments inside the fund (stocks, bonds, cash)

2. Managing risk by spreading investments across many holdings and following limits

3. Rebalancing so the fund stays aligned to its target mix

4. Managing inflows and outflows (people adding, withdrawing)

5. Following regulations and reporting requirements

FAQ 3: If fund managers exist, why can the fund value still go down?

Because fund values are affected by the market.

Even with a good fund manager, values can drop when markets are down. Fund managers can manage the fund properly, but they cannot control the market and cannot promise “it won’t go down.”

FAQ 4: Why was there no official announcement like “everyone should switch funds”?

Because it would be unsafe and unfair to give one instruction to everyone.

Clients have different goals, timelines, and risk tolerance. Switching also has timing risk. A single announcement can push some clients into a decision that is wrong for them.

Also, fund managers are not allowed to change your fund choice for you. They manage the fund, they do not decide what you should hold.

FAQ 5: Who should take the initiative if the fund keeps falling for years?

You should not be left alone.

The initiative should come from your financial advisor through a clear review process, not random switching.

What you deserve from your advisor:

1. Scheduled review (every 6 or 12 months)

2. Clear explanation why the fund is down

3. Comparison versus the fund’s benchmark

4. Written plan with rules, not guesswork

If the only advice is “switch here, switch there” without data, that is not good enough.

FAQ 6: What questions should a client ask before switching funds?

Copy-paste these to your advisor:

1. What is the benchmark for my fund, and how did it perform relative to it over 1, 3, and 5 years?

2. Is the problem market-wide or specific to this fund? Please show proof using benchmark and peer comparison.

3. What is the current asset allocation and top holdings, and what changed in the last 12 months?

4. If you recommend switching, what is the rule? Example: underperformance relative to the benchmark over X quarters.

5. If we do nothing, what is the plan? When is the next review date, and what triggers action?

6. What are the total charges I’m paying? Please separate VUL charges and fund costs, and explain the effect on net returns.

Professional recommendation and next step

Move the conversation from emotion to process.

Ask your advisor for a simple written review plan with three items:

1. Review schedule (every 6 months)

2. Benchmark comparison (so you can judge performance fairly)

3. Clear rules for when to stay, rebalance, or switch

If your advisor cannot provide those, request a second opinion with the same company or a more investment-focused advisor. You are entitled to clarity before you make another switch.

Your next read: VUL Funds losing for years?

About the Author

David Isaiah Angway is a Chartered Wealth Advisor, Estate Planner, and Strategic Financial Partner to high-net-worth individuals, affluent professionals, and legacy-focused families across the Philippines. With over ₱948 million in client risk portfolios under management, he guides clients through high-stakes decisions involving wealth structuring, succession, and multigenerational legacy.

With 13+ years of experience in financial services, David is known for his values-based approach, discretion, and deep expertise in estate planning and wealth preservation. His insights have been featured on TEDx, Bloomberg Philippines, ANC On the Money, Bilyonaryo News Channel, Moneysense Magazine, and BusinessMirror.

Disclaimer

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