FAMI assets breach P1-billion mark

MANILA, Philippines - The First Metro Asset Management Inc. (FAMI) is holding assets worth P1.219 billion as of early December this year.

That places FAMI as the asset manager with the fifth largest assets under management (AUMs) at the start of the month of December. The assets are owned by over 1,550 individual and institutional accounts.

FAMI is the fund management subsidiary of the First Metro Investment Corp. (FMIC), which in turn, is a member of the Metrobank Group of Companies. It was established in 2005.

FAMI manages four mutual funds under the Save and Learn (SAL) series, which are divided into four funds invested in the equity market, bond or fixed income market, money market, and balanced fund.

The size of the Save and Learn (SAL) Equity Fund Inc. has reached P714 million. The fund is invested in the equities or stock market, and the biggest fund managed by the First Metro subsidiary.

The second largest fund is the SAL Fixed Income Fund Inc., which has reached P317 million. The fixed income fund is invested in government-issued bonds, securities and other fixed income instruments.

The SAL Balanced Fund Inc. has amounted to P110 million. The balanced fund is a combination of investments in the equities and the fixed income markets.

Meanwhile, the short-term SAL Money Market Fund Inc. has reached P77 million.

FAMI executive vice president Hector C. de Leon said that their outlook still favors a strong equity market in 2010. But the markets are still doing well.

Interest rates are perceived to remain in the low levels as both the US Federal Reserve (US Fed) and the Bangko Sentral ng Pilipinas (BSP) are expected to stay within the present levels. A possible increase will be in the range of 250 to 500 basis points.

“But the market remains cautious as seen from the huge investments in fixed income despite low interest rates,” he added.

The general sentiment of the markets is that the Philippines will still register positive growth this year, and an even stronger growth rate in 2010.

De Leon pointed out that it could only mean the strong potential that all funds could register gains in 2010.

“The critical external conditions that we have to watch out for are that the national elections must be perceived as orderly, peaceful; and that the transition between the incumbent to the new administration is smooth,” the FAMI chief executive said.

The general sentiment of business leaders is that whoever wins the presidency would not adversely affect the general business environment.

“As long as the elections pushes through, the general perception is that it was orderly and generally peaceful, and that there is smooth sailing for new administration in the first few months in office,” they said.   — TPT