PAMI mutual funds breach P20-B mark

MANILA, Philippines - The Philam Asset Management Inc. (Pami) has reported assets under management (AUM) worth P20.177 billion as of March 15 this year, roughly nine percent higher than the P18.6 billion in 2011.

Pami is a subsidiary of the Philippine American Life and General Insurance Co. (PhilamLife), the leading insurance company and major financial institution in the country.

PAMI is the fund manager of nine mutual funds or pooled funds for the savings of individuals and institutional investors. These investors buy shares of the mutual fund and become shareholders of the fund. Investors buy and sell shares of the fund based on the prevailing net asset value per share (NAVPS).

The mutual fund with the largest value is the Philam Strategic Growth Fund Inc. (PSGF) with funds amounting to P5.884 billion, 18 percent higher than the fund in end Dec. 2011 of P4.98 billion.

The PSGF is an equity fund invested in listed or soon to be listed issues in the Philippine Stock Exchange (PSE). It is the ideal fund for people who are after capital growth but do not have the expertise or the resources to develop and manage a highly diversified equity portfolio.

Assets invested in the Philam Bond Fund Inc. (PBF) increased to P4.3 billion, up slightly from the P4.2 billion end 2011. The PBF is a solid investment that gives higher earnings compared to traditional fixed-income savings products. It is a mutual fund with a portfolio composed of government securities and high-grade commercial papers.

The investment focus of the fund is capital preservation. It is a first rate-pick for programmed capital build-up that can be used for retirement, education, incentive programs, and other individual or corporate financial purposes.

The Philam Fund Inc. (PFI), a complete investment that provides a market responsive combination of stocks and fixed income instruments, expanded to P4 billion as of Mar. 15 this year, from P3.6 billion just three months earlier.

The PFI is a balanced fund that provides its shareholders access to the stock market while tempering the market’s volatility with a steady stream of interest income. The fund’s portfolio is a healthy balance between blue chip stocks and fixed income instruments.

The fund is an ideal vehicle for moderate investors who want to avail of the profit opportunities of the stock market, but they are not totally comfortable with the risks involved in equity investments.

 Meanwhile, the Philam Dollar Bond Fund Inc. (PDBF), an alternative to low-yielding foreign currency deposit units (FCDUs), reported assets worth P3.1 billion. It invests in ROPs (Philippine government obligations denominated in US dollars), US Treasury Bills and high-grade US Dollar denominated corporate papers.

The GSIS Mutual Fund Inc. (GMFI) has expanded by nine percent to P1.42 billion from P1.3 billion end 2011. The GMFI is a Government Security and Insurance System (GSIS)-sponsored fund specially designed for government employees and institutions. It is the first fund in the country with the capability of allocating up to 20 percent of its portfolio in global investment opportunities.

The newest member of the Pami group of funds is the Pami Asia Balanced Fund Inc. (PABF) with assets worth P765 billion. It is a balanced fund invested in a mix of Asian equities and Asian fixed income. A fund that is “truly Asia” will allow the investors to take advantage of the growth opportunities in the fastest-growing region in the world and for the years to come.

The PAMI Global Bond Fund Inc. (PGBF) is a fully global-invested, multi-currency mutual fund designed for investors who want to diversify their investment portfolio and take advantage of opportunities in the global bond market. It present worth stands at P265 million.

The two remaining funds are: the NCM Mutual Fund of the Phils. Inc. (NCMF), with assets worth P296 million; and the Philam Managed Income Fund Inc. (PMIF), with assets worth P73 million.

 Generally, initial investments of most of the peso-denominated PAMI funds are P10,000 with subsequent investments at a minimum P1,000. However, the dollar-denominated funds, such as the PABF, are $2,000 minimum initial investment with subsequent minimum investments of $100.