PAMI sees stellar year for mutual funds

MANILA, Philippines - Philam Asset Management Inc. (PAMI) said it is optimistic its nine mutual funds would expand dramatically this year, judging from the 72-percent growth rate of its net assets in the past nine months.

PAMI president and chief executive officer Karen Liza M. Roa said the recent investment credit rating upgrade of Moody’s, the high liquidity of the market, the migration away from the special deposit accounts (SDA), and the strong economic fundamental all favor strong results for the year.

Total assets under management (AUMs) of the nine mutual funds reached P40 billion in end-September, or approximately 72 percent better than the P23.26 billion in 2012.

“In fact, 2013 is shaping up as a stellar year as net sales have so far reached P7 billion, or 366 percent better than the same period in 2012,” Roa said.

As expected, funds invested in the equity markets continue to dominate the field amounting to P11 billion of total AUMs.

Industry wide, mutual funds invested in the equity or stock market amount to over P50 billion of the total AUMs of over P200 billion as of April this year.

With the very low interest rates, individual and institutional investors are going to the equity funds for better returns.

Philam Strategic Growth Fund Inc., its purely equity mutual fund, reflected a 30.19- percent return in a three-year period as of April.

On the other hand, the Philam Bond Fund Inc., PAMI’s purely fixed income fund, reported an 11.1-percent return in the same period.

Another significant contributor to its growing clientele base is the synergy created between the Philippine American Life and General Insurance Co. (Philam Life) and PAMI.

Philam Life is selling variable unit linked (VUL) life insurance products which is laced with investment instruments which are basically mutual funds. These investments are in turn booked with PAMI.

In fact, over P1-billion worth of investments with PAMI this year, came from VULs courtesy of Philam Life.

Philam Life president and chief executive officer Rex A. Mendoza said that it would be a major contributor to PAMI-managed mutual funds.

“VUL investments went to equity, balanced and fixed income funds, in that order,” Mendoza said.

PAMI, which presently operates 10 branches, will likewise be setting up offices in all of Philam Life’s 23 branches nationwide.

PAMI funds are also marketed in 13 domestic and foreign banks, including the Bank of the Philippine Islands (BPI), Citi, Standard Chartered Bank, Chinatrust, and HSBC.