Thursday, February 09, 2006

Philam Fund now investment company

Manila Bulletin
Feb 8, 2006
 
Philam Fund now investment company
 
By ANA MARIE MACUJA

The Securities and Exchange Commission (SEC) has approved the application of Philam Managed Income Fund, Inc. to operate as open-end investment company with an authorized capital stock of R1 billion.


Philam Managed Income Fund registered a total of 100 million common shares with par value of R.01 per share. The Fund’s subscribed and paid-up capital is at R25 million, lower than the R50 million required by the law.

According to the SEC, Philam Managed Income Fund can be allowed to have a subscribed capital that is lower than what is required by the Investment Company Act because it is one of a group of investment companies to be created under the management of the Philam Asset Management Inc. (PAMI).

PAMI owns almost 100 percent of Philam Managed Income Fund. Other mutual funds under PAMI include Philam Fund, Inc., Philam Bond Fund, Philam Dollar Bond Fund, GSIS Fund and Philam Strategic Growth Fund.

Meantime, Philam Managed Income Fund is expecting net proceeds of R99.62 million from the offering of its shares to investors. Proceeds will be used to build up the company’s investments in domestic fixed-income instruments including treasury bills, Bangko Sentral ng Pilipinas Certificate of Indebtedness and other government securities or bonds.

Further, the mutual fund disclosed its investment in any single enterprise shall not exceed an amount equivalent to 10 percent of its total net worth.

It added that for liquidity purposes, at least 10 percent of its fund shall be invested in liquid or semiliquid assets.

Further, the Fund said it will also invest not more than 20 percent of its total net assets in debt instruments issued by foreign governments and corporations that are pre-approved by the Fund Manager’s board of directors.

A minimum purchase of P5,000 worth of shares shall be accepted for each initial investment at Philam Managed Income Fund. Subsequent investments shall be at least P1,000.

Each share shall be offered at an offer price based on the Fund’s Net Asset Value Per Share (NAVPS) as of the banking day if the investment is received within the daily cut-off time. As of December 31,2005, the computed NAVPS is P1 per

Thursday, February 02, 2006

Peso seen breaching 51:$1 mark

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=02&dd=02&file=1Posted: 2:15 AM Feb. 02, 2006

Doris C. Dumlao
Inquirer

FOREIGN buying of Philippine stocks, softening world oil prices and better credit-rating prospects for the country strengthened the peso further to a three-year high of 52.05 to the dollar during trading on Wednesday before closing at 52.09, its strongest finish since ending at 52.05 to the dollar on May 12, 2003, analysts said.

"There's positive sentiment toward the VAT implementation and corporate demand for dollars is thin," said Roland Avante, treasurer at Chinatrust Commercial Bank Philippines.

The peso opened at 52.10 to the dollar and hit an intra-day low of 52.125 before closing, on a trading volume of $448 million.

The currency was also supported by prospective foreign capital inflows for the P8.5-billion initial public stock offering of First Generation Corp.

Avante said another favorable factor working for the peso was the easing of international oil prices. "At a price of $67-68 a barrel, oil companies need to source about $100 million from the spot market in a month," he said. "At only $65 a barrel, this will go down to $60-$70 million, a demand that can easily be absorbed by the market."

While the momentum is positive and the peso is heading toward the 51 to the dollar, Avante said, the cheaper dollar was creating demand.

"We haven't seen the peso at low 52 levels for a long time, so those who are not so optimistic are now hunting for bargains. They are buying dollars at these levels," Avante said.

Analysts expect Philippine stocks to outperform fixed-income securities this year, which would mean the peso's appreciation would depend more on equity investment flows.

"The US treasuries are declining in price but our comparative benchmark is not moving so the spread is declining," Avante said, noting why local debt paper would likely become less attractive.

Analysts at ING agreed that double-digit returns on peso bonds seen last year would be impossible to replicate this year.

Paul Joseph Garcia, ING Philippines chief investment officer, said peso bonds would likely yield only 8-10 percent net after tax while local equities could top last year's return of 15 percent.

"This year, we're looking at 15-20 percent" return rate for the Philippine Stock Exchange composite index, he said. "Our view on valuation is still cheap."

Meanwhile, Avante said the market would be very disappointed if the Philippines would not get an upgrade in its credit-rating outlook from major international rating agencies. He said most investors had priced an improvement in the ratings and that a change in the outlook from "negative" to "stable" might not be enough. With INQ7.net

Copyright 2006 Inquirer, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

copyright ©2006 INQ7money.net all rights reserved

Wednesday, February 01, 2006

Consumers less inclined to spend, survey shows

this story was taken from www.inq7money.net

Consumers less inclined to spend, survey shows
Posted: 2:39 AM Feb. 01, 2006
Daxim L. Lucas
Inquirer

FILIPINO consumers have become less inclined to spend their excess cash and are more likely to save it because of lingering concerns on the economy and political stability, according to a consumer confidence survey by AC Nielsen.

The Philippines' consumer confidence index fell "marginally" to 93 points in November 2005 from the time of the previous survey in May 2005, the multination research group said.

"Filipinos are now more conservative in terms of spending money," AC Nielsen managing director Benedicto Cid Jr. told reporters even as he stressed that the results were "relatively unchanged" from the previous poll, "particularly in the areas of job prospects and personal finances."

The regular, global survey is used to gauge consumer sentiment and confidence in the future of different economies by examining spending and saving patterns.

The survey revealed that consumer confidence in the Philippines remained below the global average of 98 points during the poll period. Consumers in India and New Zealand were the most optimistic, garnering 132 and 123 points, respectively. South Korean and Portuguese consumers were the most pessimistic with 62 and 60 points, respectively.

Cid said Philippine consumer confidence took a hit mainly due to concerns on the economy, with an overwhelming 69 percent of respondents expressing their worry over it.

"Rising oil prices and the value-added tax are factors which contributed to this perception in the Philippines," he said.

Respondents in the 10-nation ASEAN region also ranked the economy as their main concerns, specifically Thai, Indonesian and Malaysian respondents.

Aside from the economy, Philippine consumers were also reining in spending because of worries about the country's political stability, the survey showed.

"The Philippines takes first place in terms of political stability concerns," Cid said. "This is because we're all aware how it will affect our lives. The resolution [of political troubles] is important if we want our country to move forward."

The local AC Nielsen chief said the "Hello, Garci" wiretapping controversy, the "Hyatt 10" mass resignation of Cabinet officials, and the ensuing attempt to impeach President Gloria Macapagal-Arroyo -- all of which happened during the run-up to the survey period -- made politics one of the top concerns of Filipino consumers at 42 percent, versus an Asia-Pacific median of 18 percent.

The survey also found that Filipino consumers have also become very conscious about saving their spare cash after all their essential living expenses are covered.

AC Nielsen said 60 percent of Filipinos indicated an "inclination to save" -- the second-highest percentage in the region after the Taiwanese.

This contrasts sharply with government statistics that show the Philippines as having one of the lowest savings rates in the region, with only 24 percent of economic output being put in savings.

This divergence may be explained by the profile of the survey's respondents, which are mainly middle- and upper-income Filipinos with access to the Internet -- presumably groups that have higher disposable incomes and a higher propensity to save.

More than 23,000 consumers were polled over the Internet covering 41 countries in November 2005. In the Philippines, about 500 respondents were surveyed, AC Nielsen said. With INQ7.net

Copyright 2006 Inquirer, INQ7.net. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


copyright ©2006 INQ7money.net all rights reserved