Pami net assets hit P22B in first six months

The Philam Asset Management Inc. (Pami) has reported a net asset base of P22.15 billion as of end June this year, or 1.14 percent better than the assets under management (AUM) of P21.9 billion end Decembr 2004.That ranks Pami in second overall in terms of net asset base among the 11 fund management companies in the country’s mutual fund industry. The asset base is equivalent to 32.22-percent market share also second best.

However, it is the market leader in terms of shareholders’ accounting for 63.24 percent, or 52, 881 shareholders (investors) of the industry total of 83,616.

Pami is the asset manager of five mutual funds namely the Philam Bond Fund (PBF), the Philam Fund (PFI), the Philam Strategic Growth Fund (PSGF), and the Philam Dollar Bond Fund (PDBF).

During its recent annual stockholders’ meeting, Pami reported that all the mutual funds reported positive gains against industry benchmarks relative to their sector or classification. It also ranked high compared to other market players.

Pami sales manager Hector de Leon said that the PSGF ranked second best performer among the stock funds category, and the PDBF likewise ranked second in the dollar bond funds group.

In the balanced fund category, the PF also ranked second among the seven funds while the PBF ranked third among the 11 funds in the peso bond group.

Incidentally, Pami also manages the GSIS Kinabukasan Fund which caters to GSIS members.

De Leon reported to the fund stockholders that the PBF topped all other funds for three consecutive years with an outstanding net yield of 8.03 percent. It closed 2004 with an 11.32 percent weighted average interest rate (WAIR) which outperformed by 143 basis points (bps) the 364-day Treasury Bill (T-bill) rate of 9.884 percent.

Net assets of the PBF end June 2005 stood at P8.86 billion or 16 percent better than the P7.6 billion in the same period last year. Net asset value per share (NAVPS) grew to P2.1003 or eight percent better than the P1.9442 in the same time frame last year.

The PSGF net assets rose by a whopping 84 percent, or from P254 million in January to June 2004 to P468 million this year. Therefore, NAVPS grew 20 percent, or from the P157.19 in the first six months last year to the P188.44 in the period this year.

From its launch, the same fund outperformed the benchmark Philippine Stock Exchange Index (Phisix). The Phisix grew 7.49 percent versus the 71.43 percent of the PSGF.

The PF registered a NAVPS of P5.2932 end June this year for an 18-percent growth rate from the P4.5012 in the same time last year. Assets grew by 82 percent, or from P175 million last year to P319 million this year.The PDBF posted a net yield of 4.84 percent end 2004 versus the five-year US Treasury net return of 4.25 percent.In the first six months of 2005, NAVPS rose to $1.2433 from the $1.1832 for a five-percent growth rate. However, net assets slipped by two percent from $204 million in the first semester of 2004 to $200 million this year.

Pami describes a mutual fund is an investment company whose objective is to make money by investing and reinvesting in securities. Investors can participate in the investment company by buying the shares of the mutual fund. Initial investments can be made for as low as P5,000.

Investors become shareholders of the investment company or mutual fund which is in turn managed by a fund manager, or in this case Pami.

Pami is a subsidiary of the Philippine American Life and General Insurance Co. (Philamlife), one of the country’s leading financial institution involved in life and non-life insurance, asset management, bancassurance, thrift banking, pre-need, health care, credit cards, and call centers.