Wednesday, October 08, 2008 Pami funds remain ‘stable, very liquid’ despite divestment - firm
FOLLOWING the announcement of the intention of the American International Group (AIG), Inc. to sell its Philippine unit, a wholly owned subsidiary of the Philippine American Life and General Insurance Co. (Philam Life) assured its shareholders of its stability and liquidity.
The Philam Asset Management Inc. (Pami), in a letter to clients and partners, said it “remains to be strong and well-capitalized.” Pami furnished Sun.Star Cebu a copy of the letter.
Pami, along with other Philam Life affiliates, have been identified for possible divestment by its parent company AIG, to enable the latter to repay its $85-million loan from the United States Federal Reserve.
Philam Life said AIG subsidiaries in the Philippines “remain financially strong and comply with local regulatory capital requirements.”
Pami, in the statement signed by president and chief executive officer Karen Liza M. Roa and chairman Jose L. Cuisia, said each of the mutual funds it manages is registered with the Philippine Securities and Exchange Commission as an investment company with separate and distinct board of directors.
Apart from all funds being private corporations with “a broad base of shareholders,” Pami said all these are “very stable” and the investments are “very liquid.”
Pami explained that 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.
The Philamlife subsidiary said that 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 executions of our business and remain committed to provide you with the highest level of service,” Pami’s statement said.
Roa told local reporters last year that Pami’s total assets in management at the national level grew approximately P20 billion at the end of 2006, accounting for 60 percent of the country’s mutual fund industry. It went up to P21.45 billion in the first quarter of 2007, Roa said.
She reported that in Cebu alone, Pami managed a total of P380 million in assets in the first quarter of 2007 or a 58 percent growth from the same period in 2006. (NRC)
