Philam Asset boosts mutual fund by 12% to P21.9B in 2007

Philam Asset Management Inc. (PAMI) registered assets under management (AUMs) worth P21.91 billion at end-2007, 12.41-percent higher than the P19.49 billion level in 2006.

“It is the highest AUMs that the fund manager has held since 1993 when the company was formed,” Karen Liza M. Roa, Pami president and chief executive officer, said.

PAMI manages the largest number of individual and institutional clients numbering 92,020 at end-2007, from 72,404 at the end of 2006, or a 27-percent annual growth rate.

The company boosted its gross income 17 percent from P422.8 billion in 2006 to P495.1 billion last year. Net income, however, fell 12 percent from P237 billion in 2006 to P224.1 billion last year.

But from a net redemption of P3.47 billion in 2006, PAMI reversed the situation to P1.74 billion in net sales last year.

Roa said the returns of three equity-laced funds all posted double-digit growth rates. Philam Strategic Growth Fund posted a yield of 20.09 percent, GSIS Mutual Fund posted a yield of 21.92 percent, and Philam Fund Inc. reported gains of 19.37 percent.

Its fixed income funds also performed favorably despite the weak global bond market due to lowering interest rates.

Philam Bond Fund recorded yields of 4.34 percent, while the Philam Dollar Bond Fund posted a yield of 6.6 percent last year.

In anticipation of the weakening market conditions, PAMI recently introduced that AIG Global Bond Fund Philippines, a full global-invested mutual fund in a portfolio of sovereign debts and high grade corporate bonds denominated in dollars and other major currencies.

In fact, it already reported a yield of 5.21 percent year-to-date, or almost equal to benchmark.

PAMI officials said investors must diversify their portfolio as well as maintain a long-term view of their investments.

A mutual fund as an investment company whose objective is to make money by investing and reinvesting in securities. Investors, both individual or institutional, can participate in the investment company by buying the shares of the mutual fund.

A mutual fund is operated by an asset management company not allied with a bank and  is regulated by the Securities and Exchange Commission.