PAMI assures investors, stakeholders

“American International Group’s (AIG) divestment decision is not a reflection of their subsidiaries’ business or historical performance. AIG’s subsidiaries in the Philippines remain financially strong and comply with local regulatory capital requirements.”

That was the statement by the Philam Asset Management Inc. (PAMI) regarding the reported sale of the AIG subsidiaries to pay the $86 billion bailout loan package by the Federal Reserve of New York.

PAMI is a wholly owned subsidiary of the Philippine American Life and General Insurance Co. (Philamlife), the largest and most profitable insurance company in the country and the undisputed market leader for 60 years.

Philamlife, which is also reportedly at the auction block, has a networth of P49.5 billion and total assets placed at P170 billion.

PAMI remains to be a leader in the mutual fund industry with the largest shareholder base and assets under management (AUM) of P22 billion end 2007. It has also been the most awarded mutual fund company in the last two years by the Investment Company Association of the Philippines (ICAP).

The P22 billion worth of AUMs are distributed with seven mutual funds.

PAMI president and chief executive officer Karen Liza M. Roa said that the fund manager is strong and well capitalized.

Roa said that each of the PAMI-managed mutual funds is an investment company registered with the Securities and Exchange Commission (SEC) with separate and distinct board of directors. All funds are public corporations with a broad base of shareholders. The funds are very stable and its investments are highly liquid, strictly complying with the objectives and restrictions stipulated in the respective mutual fund prospectuses and acting in accordance with the Philippine Investment Company Act.

The Philam Bond Fund, Philam Dollar Bond Fund, Philam Managed Income Fund, Philam Fund Inc., Philam Strategic Growth Fund and the GSIS Mutual Fund are invested in Philippine Government Securities, fixed income securities of strong local corporations and blue chip stocks. Its newest fund, the AIG Global Bond Fund Philippines is invested in low risk, investment grade global fixed income securities.

“As we continue with this process, we will focus on the daily execution of our business and remain committed to provide you with the highest level of service. Its investment philosophy, criteria and processes that drive our investment returns remain unchanged,” the PAMI chief executive added.

Meanwhile, AIG is seeking top rated, financially strong brand names with the capability to continue Philamlife’s legacy of leadership, strength, stability, and dedication to its stakeholders.

Based on the assets, capital and network, it is expected that global financial institutions will make a bid for Philamlife and all its assets. Major global players already in the Philippines are AXA of France, Sunlife Financial (Canada), Manulife Financial (Canada), and Pru Life of the UK.

Locally, those expected to bid or have already expressed interest in Philamlife are the Ayala Group, the San Miguel Group, and the Yuchengco Group.

The Philamlife network includes life and non-life insurance, asset management, thrift savings bank, pre-need, credit cards.