Pami launches ninth mutual fund to be invested in Asian equities, bonds

MANILA, Philippines - The Philam Asset Management Inc. (Pami) is formally launching next month its 9th mutual fund called the Pami Asia Balanced Fund Inc. (PABFI). Pami is the investment manager of all nine funds, and a wholly-owned subsidiary of the Philippine American Life and General Insurance Co. (Philam Life), the leading insurance and financial institution in the country.

Philam Life, in turn, is an affiliate of the American International Assurance (AIA), a leading life insurance organization in the Asia Pacific region.

Pami also manages eight other mutual funds namely: Philam Managed Income Fund, Philam Bond Fund, Philam Dollar Bond Fund and Pami Global Bond Fund for conservative investors and Philam Fund, GSIS Mutual Fund, Philam Strategic Growth Fund and NCM Mutual Fund for moderate to aggressive investors.  

The PABFI is considered a pioneer of sorts being the only balanced fund in the foreign-currency-denominated equity asset class that will be invested in Asia.

The fund will be invested in Asia (ex-Japan) equities, Asian bonds, and money market instruments. Asset allocation is 50-percent Asian equities, and 50-percent Asian fixed income and money market instruments, with a range of (plus or minus) 20 percent for each asset class.

“This mix allows for participation in the equity markets, which yields higher returns, and will enhance the growth potential of the portfolio while the allocation to bonds will ensure that the portfolio is adequately buffered against volatility and risk of capital loss,” Pami said in a report.

Minimum initial investment is $5,000, and minimum additional investment is $1,000. Minimum holding period is six months.

Pami said that the fund risk profile has a moderate risk profile as it invests in equity securities of established companies listed in the stock exchanges of the Asia Pacific (ex-Japan) region.

Entry fee, or sales load, is not more than three percent of the investment amount, and redemption notice period is seven days.

Citibank NA is the custodian bank while Deutsche Bank AG Manila will be the transfer agent.

The investment sub-advisor is Amundi Singapore Ltd., a wholly-owned subsidiary of Amundi, which is the combined asset management arm of Credit Agricole SA and Societe Generale.

Amundi Singapore is a leading global asset management company with more than $923 billion under management, end 2010. It has a presence in over 30 countries across five continents and investment centers located in major financial markets in Europe (Paris, London, Milan), Asia (Japan, Hong Kong, Singapore, Malaysia), and the United States.

The Amundi Group has extensive investment expertise in managing a comprehensive array of asset classes in various currencies to serve global institutional clients, distributors, and partner networks in France and elsewhere.

Amundi Singapore is well resources and equipped to serve institutions (public institutions, pension funds, insurance companies, and corporates) and distributors in Southeast Asia.

Amundi is one of the top-ranking asset managers for open-ended mutual funds, dedicated funds and mandates in continental Europe and ranked eight globally for assets under management.