PAMI mutual funds hit P18.6B in 2011

MANILA, Philippines - The Philam Asset Management Inc. (PAMI) is nurturing P18.6 billion in total assets under management (AUM), or investments from the public entrusted to PAMI for growth, as of end December 2011.

PAMI is the fund manager of nine mutual funds or pooled funds for the savings of individuals and institutional investors. These investors buy shares of the mutual fund and become shareholders of the fund.

Investors buy and sell shares of the fund based on the prevailing net asset value per share (NAVPS).

It is a subsidiary of the Philippine American Life and General Insurance Co. (PhilamLife), the leading insurance company and major financial institution in the country.

The mutual fund with the largest value is the Philam Strategic Growth Fund Inc. (PSGF) with funds amounting to P4.98 billion.

 The PSGF is a long-term investment that gives superior capital growth through a professionally managed stock portfolio. PSGF is an equity fund invested in listed or soon to be listed issues in the Philippine Stock Exchange (PSE).

It is the ideal fund for people who are after capital growth but do not have the expertise or the resources to develop and manage a highly diversified equity portfolio.

Based on PAMI data, funds invested a year ago with the PSGF would have grown by 2.59 percent.

But investments made in the fund three years ago would have grown by 32.63 percent. Or if the investment were made five years ago, it would have grown by 11.62 percent.

AUMs invested in the Philam Bond Fund Inc. (PBF) has reached P4.2 billion end 2011. The PBF is a solid investment that gives higher earnings compared to traditional fixed-income savings products. It is a mutual fund with a portfolio composed of government securities and high-grade commercial papers.

The investment focus of the fund is capital preservation. It is a first rate-pick for programmed capital build-up that can be used for retirement, education, incentive programs, and other individual or corporate financial purposes.

It reported returns of 7.41 percent from investments made a year ago, and 6.83 percent made three years ago.

The Philam Fund Inc. (PFI), a complete investment that provides a market responsive combination of stocks and fixed income instruments, has funds worth P3.6 billion.

It is a balanced fund that provides its shareholders access to the stock market while tempering the market’s volatility with a steady stream of interest income. The fund’s portfolio is a healthy balance between blue chip stocks and fixed income instruments. It is an ideal vehicle for moderate investors who want to avail of the profit opportunities of the stock market, but they are not totally comfortable with the risks involved in equity investments.

Investments placed with the PFI a year ago would have recorded returns of 2.81 percent, but it would have grown by 27.59 percent if the placement were made three years ago.

Meanwhile, the Philam Dollar Bond Fund Inc. (PDBF), an alternative to low-yielding foreign currency deposit units (FCDUs), has grown to P3.2 billion. It invests in ROPs (Philippine government obligations denominated in US dollars), US Treasury Bills and high-grade US Dollar denominated corporate papers.

 Investments made a year ago would have grown by 3.66 percent, and 9.97 percent if made three years ago.

 Meanwhile, the GSIS Mutual Fund Inc. (GMFI) has expanded to P1.3 billion. Investments made a year ago would have expanded by 0.86 percent but those made three years ago would have expanded by 26.67 percent.

The GMFI is a Government Security and Insurance System-sponsored fund specially designed for government employees and institutions. It is the first fund in the country with the capability of allocating up to 20 percent of its portfolio in global investment opportunities.

The PAMI Asia Balanced Fund Inc. (PABF) is the newest member of PAMI’s mutual funds but it already has assets worth nearly P700 million.

It is a balanced fund invested in a mix of Asian equities and Asian fixed income. A fund that is “truly Asia” will allow the investors to take advantage of the growth opportunities in the fastest-growing region in the world and for the years to come.

The PAMI Global Bond Fund Inc. (PGBF) is a fully global-invested, multi-currency mutual fund designed for investors who want to diversify their investment portfolio and take advantage of opportunities in the global bond market. It present worth stands at P328 million.

The two remaining funds are: the NCM Mutual Fund of the Phils. Inc. (NCMF), with assets worth P258 million, and the Philam Managed Income Fund Inc. (PMIF), with assets worth P93 million.

Generally, initial investments of most of the peso-denominated PAMI funds are P10,000 with subsequent investments at a minimum P1,000.

However, the dollar-denominated funds, such as the PABF, are $2,000 minimum initial investment with subsequent minimum investments of $100.