Monday, October 27, 2008 ‘Stay calm,’ Philam arm to clients By Nancy R. Cudis Sun.Star Staff Reporter
TOP officials of Philam Asset Management Inc. (Pami) asked its clients to stay calm and to wait for capital markets to stabilize before they will even think of withdrawing their mutual fund investments.
Pami executive vice president Gina Morales told investors in a meeting last week at the Cebu City Marriott Hotel that various governments are intervening and providing tools, such as bank equity, to boost investor confidence amid the global financial crisis.
When this confidence is built, Morales said that banks will start lending to each other that could contribute to the stability of the world market.
She added that investors will miss the opportunity of higher returns if they will still wait until after the market is stabilized before investing or reinvesting.
“When there is blood in the streets, it is best to start investing,” she said.
Pami’s total assets in management is approximately P17.2 billion at the national level, about P2 billion in Central Visayas
and more than P1 billion in Cebu.
Morales and Pami president Karen Roa have been visiting key provinces in the country—Pampanga, Davao, Cebu, Bagiuo and Bacolod—to reinforce what their personnel have been assuring to clients amid the global financial turmoil sparked by the US sub-prime mortgage crisis.
This crisis has affected the American International Group (AIG) which earlier announced to sell its Philippine unit, Philippine American Life and General Insurance Co. (Philamlife), to repay its $85-million loan from the United States Federal Reserve.
Along with other Philam Life affiliates, Pami, a wholly owned subsidiary of Philamlife, has been identified for possible divestment.
Morales, though, admitted that their mutual funds, which are market-driven, have been affected by the poor performance of the stock market.
Pami’s products, such as 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.
“At Pami, it’s business as usual,” Roa said. “We have established very good relationships with our investors (such that) they have not only trusted us but also understood this is only a market sentiment and everything will soon settle down,” she added.
