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16 July 2015
PAMI Launches New Equity Index Fund
According to a recent Bloomberg survey, international economists and investment analysts project that the Philippines will be the second fastest growing economy in the world for 2015, outpacing other countries in the South East Asian (SEA region).
Philam Life’s Head of Equity Fund Management, Eduardo Banaag, Jr. said, “The trend of the Philippine stock market is indicative of the fact that the economy is stable and growing. The Current Account Surplus (OFW remittances + BPO + Tourism) implies a stable exchange rate and an extended period of low interest rates. A domestically-driven demand for its goods and services implies that the stock market will weather the ups and downs of the global economy.”
Veteran and newbie investors alike should look into taking advantage of this opportunity in the stock market, with a particularly quick and easy option of investing in index funds, which operate by mimicking the performance of the stock market.
“At PAMI, we want to address the clamor for investing in the Philippine Stock Market. Through our new index fund, the PAMI Equity Index Fund, investors can grow with the country’s 30 largest corporations that comprise the Philippine Stock Exchange Index (PSEi). These companies are spread among a range of industries and are key players in the Philippines’ economic growth,” explained Philam Asset Management, Inc. (PAMI) President Ferdinand Berba.
Apart from the particular growth prospects of a Philippine-based index fund, it retains the inherent benefits of diversification and cost-efficiency. “One of the key intentions of the PAMI Equity Index Fund is accessibility to the 30 largest and most stable corporations in one investment,” Berba said. “Usually, it takes hundreds of thousands of pesos to invest in all of these stocks. By investing in the index fund, even a minimum investment of P5,000 gives you the opportunity to hitch on the growth of the Philippine economy.
Berba continued, “Now is the time to start a portfolio. And because the management fee of an index fund is relatively low compared to an actively managed fund, whatever returns you get on your investment are maximized.”
Aside from possible high returns from the market’s current growth, Berba noted that new investors can use this opportunity to better understand how investment funds work. “Since not every individual is investment savvy and familiar with technical concepts, investing in an index fund will provide clients with a clearer picture on how the market works. You will get a better understanding of the market and the corresponding financial returns,” he concluded.
For those who are interested in adding insurance protection to the investment benefits of an index fund, Philam Life offers its Money Tree and Money Tree Elite products. “The addition of the PAMI Philam Equity Index Fund as a new fund option for Money Tree and Money Tree Elite is exciting news,” noted Philam Life Chief Marketing Officer Jaime Jose M. Javier, Jr. “We are the first company that makes it possible for client-investors to choose an index fund to increase the cash component of their insurance plan,” he added.
Money Tree and Money Tree Elite allows clients to choose from a range of funds, depending on their appetite for risk. Regardless of which fund they choose, there is guaranteed life insurance coverage of at least 125% of their investment, all packaged in a simple one-pay investment. “Moreover, those who want to add more money into their investment or add health riders for increased protection are free to do so at any time,” Javier concluded.
PAMI is Philam Life’s asset management subsidiary, whose assets have grown to P40.698 billion in 2014 from P21.903 billion in 2004. PAMI is one of the largest asset and wealth management companies in the country, managing mutual funds from different asset classes and is a major contributor to the development of the Philippine mutual fund industry. PAMI has won nine awards from PIFA in 2014 alone, and has consecutively been named Most Trusted Brand since 2010, Investment Fund Category by Reader’s Digest.
To learn more about Philam Asset Management Inc (PAMI) and their recently launched PAMI Equity Index Fund, visit www.philamfunds.com
About Philam Life
The Philippine American Life and General Insurance Company (Philam Life) is the country’s premier life insurance company. Established on June 21, 1947, Philam Life offers an extensive line of products in the industry that provides solutions to various financial needs including life protection, health insurance, savings, education, retirement, investment, group and credit life insurance.
Philam Life is a member of AIA Group Limited, the largest independent publicly listed pan-Asian life insurance group.
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and representative offices in Myanmar and Cambodia.
The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$167 billion as of 30 November 2014.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 28 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).