PAMI launches 9th mutual fund

MANILA, Philippines - After just two months since it was introduced, the Pami Asia Balanced Fund Inc. (PABFI) has reached $8.5 million (roughly P366 million) as Philippine investors are slowly shifting US dollar investments in fixed income instruments to the balance and equity markets.

The unique mutual fund registered an impressive five percent in returns.

Likewise, investors are also reflecting confidence in the Asian markets over the stagnating western counterparts.

PABFI is the newest mutual fund managed by the Philam Asset Management Inc. (PAMI). In fact, it is PAMI’s ninth fund, making it the fund manager with the largest pool.

The other funds managed by PAMI are: Philam Strategic Growth Fund Inc. (PSGF), Philam Fund Inc. (PFI), GSIS Mutual Fund Inc. (GMFI), Philam Bond Fund Inc. (PBFI), Philam Dollar Bond Fund (PDBF), Philam Managed Income Fund (PMIF), and NCM Mutual Fund of the Philippines Inc. (NCMMFPI). It is also the local fund manager for the AIG Global Bond Fund Inc.

In terms of the value of the assets under management (AUM), PAMI executive vice president Gina Goco-Morales said that it stood at P20.5 billion at the end of April this year, and making it the second largest among the fund managers in terms of value.

The PABFI 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.

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

The mix allows participation in the equity markets, which yields higher returns, and will enhance the growth potential of the portfolio.

The allocation to bonds meanwhile will ensure that the portfolio is adequately buffered against volatility and risk of capital loss.

“This is the most exciting fund to date because it is inspired by the Asia boom story. It is a balanced fund, making it ideal for the moderate risk appetite of the Filipino investors,” Morales said, at the sidelight of the new funds formal launching Wednesday night.

The PAMI executive vice president said the Filipino investors are looking for dollar investment outlets. There has been are noticeable shifting from fixed income dollar-denominated funds to the balanced and equities.

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.

The investment sub-advisor of PABFI is Amundi Singapore Ltd., a wholly-owned subsidiary of Amundi, which is the combined asset management arm of Credit Agricole SA and Societe Generale. It is a leading global asset management company with more than $923 billion under management, end 2010.