MANILA, Philippines - FMIC Asset Management Inc. (FAMI), a unit of First Metro Investment Corp., said it is on track to achieve its full year 2011 target of P5-billion assets under management (AUMs) with P4.49 billion as of Nov. 24.
The assets are placed in mutual funds, with FAMI as its fund manager.
FAMI invests in five mutual funds under the brand name Save-and-Learn or SAL. These are Save and Learn Equity Fund (SALEF), Fixed Income Fund (SALFIF), Balanced Fund (SALBF), Money Market Fund (SALMF) and FMGOF.
SALEF, the largest fund, has grown to P2.65-billion equity funds are invested in selected securities listed at the Philippine Stock Exchange (PSE).
FAMI president Augusto M Cosio Jr. said that the economic center is no longer around the Atlantic or the developed nations, as the emerging markets, including Asia, have been keeping the global economy afloat in the midst of a troubled eurozone and US economies.
“Investors have to seek more ways of diversifying into emerging and even frontier markets. That is likely to benefit us,” Cosio said, adding that investors are moving their money to bourses of emerging markets, including the Philippines.
“I think more people will be convinced of this as local companies present positive earnings outlook for the rest of the year and even into 2012. I had always believed that our market could diverge from the US, and that is what is now going on,” he said.
The second largest fund is the SALFIF reaching P819 million this month. Fixed income funds are invested in government securities and corporate debt papers, which have a fixed earnings stream.
Meanwhile, SALBF reached P761 million. The balanced fund is a mixed investment in fixed and equity investments. Moving at a slower pace is SALMF, growing slightly to P205 million. Its growth merely tracks interest rates of savings products.
Mutual funds are a pool of funds where investments as low as P5,000 can be initially opened. The funds are managed by competent fund managers, and overseeing money placed in equity funds, fixed income or bond funds, balanced funds (a mix of equity and fixed income), and money market funds.