CEBU, Philippines - Although the first quarter of this year has been quite challenging for financial management expert PhilAm Asset Management, Inc. (PAMI), the company is still looking forward to a positive market recovery in the second half of 2009.
In a press conference, PAMI president and chief executive officer (CEO) Karen Liza M. Roa expressed optimism of the Philippine investment market, saying the great attention of G7 countries to stimulate market recovery, can re-activate the interest of investors in the Philippines.
Roa, however, said that PAMI has adjusted its growth forecast this year, because of the volatile market movement, as well as the lingering effects of the issue of its mother company, which has yet to identify its buyer.
Because of these problems, Roa admitted that the company's AUM (Assets Under Management) has dropped by 30 percent last year, as many investors have moved their investments, although not totally withdrawing their money from PAMI.
PAMI is a fund management company that manages the Philam Family of mutual funds. It is wholly owned by Philamlife, the largest insurance company in the country.
She said the company's top five clients, however, had not moved their money, despite the challenges last year, but 95 percent of its total managed assets moved, thus pushing the company's AUM down by 30 percent.
This year, Roa said PAMI is expecting a modest growth, specifically that the company is doubling its effort to hold-on to its old clients, and gaining new investors, through its aggressive campaign on promoting savings among Filipinos under the banner of Personal Investment Product (PIP).
Because of this product, Roa said PAMI expects to gain new investors, as it targets the monthly-earners, or the professionals, to save up using installment system, the famous and effective way to attract mainstream market consumers.
"Why are we attracted to any kind of installment offering, like jewelry, and others, and we don't save for our retirement or future financial security?" he said.
"Savings is a behavior. There is a need to encourage saving discipline for long term to protect people from economic cycle," she said.
Despite the financial crunch, Roa said there are growing number of Filipinos, including Cebuanos that have put importance in savings, and have put their money to "trusted" and credible financial management entities.
Last year, despite the problem it faced with its mother company—PhilAm, PAMI was able to hit growth in net income.
She said those that understand the market cycle, now see the opportunity to invest, preparing themselves of the anticipated recovery of the global economy.
Wise investors are now taking advantage of the low prices in stocks, and other investment instruments, and entrust their money to financial experts like PAMI, she added.
Which-ever company will be able to buy-out PhilAm in the Philippines, will bring no changes to PAMI's operation, as its managed assets are most invested in government securities and other secured investments.
Significantly, she added that this financial difficulty is part of a cycle, and that what is clear, is "this is just temporary." — Ehda M. Dagooc