PAMI introduces personal investment program

The importance of saving and investing has often taken a backseat in these difficult times, especially when Filipino households are already spending more than they are earning, according to the National Statistics Office’s (NSO) Family Income and Expenditure Survey. 

Average savings per family was estimated at only P25,000 per year, which came mainly from families with the highest annual income. This shows that saving money is not a habit most Filipino families have developed.

“The Philippines has a strong consumerist culture, which is why saving and investing their hard-earned money is not at the top of our minds. This is especially true for young professionals,” Ricky So, Philam Asset Management Inc. (PAMI) senior assistant vice president for Training & Marketing.

Financial planning for the future is a step often overlooked by young professionals because they think they are too young to start thinking about the future – and even as far forward as their retirement – which is why they think saving a small amount in the bank is enough. Their train of thought usually involves saving first and then investing a huge amount later on in their lives, when they are already making more money at work.

“But banks only offer one-to two-percent interest growth per year. But if they invest that money and let it move through the market, what their money earns in a year sleeping in the bank can be earned in a month, sometimes even more,” explained So.

And ‘investments’ does not mean big amounts. To prove that, PAMI created the Personal Investment Program (PIP) so that consumers will realize just how easy and affordable it is to invest.

With PIP, small investors can avail of a scheme where they invest monthly contributions according to their budget. Minimum initial investment for individuals is P10,000. For employees of company-endorsed PIP, the minimum initial investment is only P1,000, with required minimum participants per company of 10 employees.

For both cases, minimum amount for succeeding investments is only P1,000 monthly over a specified term (e.g. 12, 18, 24, etc. months).

A strategic alliance between the Philippine American Life and General Insurance Company (Philamlife) and AIG Investments, PAMI is an asset management company managing a family of funds, and it is a major contributor to the development of the Philippine mutual fund industry. PAMI has the biggest market share in the industry in terms of shareholder accounts both individual and institutional.

“Through PIP, we are in effect extending to small investors the advantages of diversification, liquidity and financial expertise that only organizations with extensive financial muscle like PAMI can provide. With enough discipline, P1,000 a month is attainable. There is no more excuse for you to not to secure your future,” concluded So.