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Our Current View
Dear all,
Our view on what has happened:
With the expectation and anticipation of US recovery evidenced by increased activity and economic output, furthered with expectations of the stimulus program being phased out, foreign investors were prompted to start realigning their placements in emerging markets and shifting them back to US-based assets.
Fortunately or unfortunately, with the Philippines being one of the better performing economies in the Asia Pacific region, we were one of the best outlets for both local and offshore portfolio money.
OUR INVESTORS SHOULD NOT BE ALARMED. This is a function of fund-shift issue rather than a crisis. The Philippine macroeconomic, fundamental and political elements are intact, and we have just been affected because of the amount of foreign funds that are holding peso-denominated portfolio money.
Moreover, with the Philippines being a small market, any movement such as this will be greatly felt in the local markets.
Our strategy moving forward:
As discussed in the recently concluded SALEF shareholders meeting earlier this May 23, investors showed great concern as to why SALEF was underperforming. Our view was that while the local stock market was on a great level, we as fund managers began to take a more conservative approach and thus kept about 25% of SALEF’s portfolio money in cash. While this proved disadvantageous to current year to date yield then compared to peer equity funds and the index itself, it was a prudent move on our part to not be overcommitted to stocks and be prepared for any major corrections that may happen.
Now that the local market has dropped, we have plenty of cash to be reinvested. Here is the status of the fund vs. the PSEi.
PSEi December 31, 2012 = 5,812.73
PSEi June 13, 2013 = 6,114.08
YTD Yield = 5.18%
SALEF December 31, 2012 = P4.8071
SALEF June 13, 2013 = P5.0447
YTD Yield = 4.94%
Our official year-end target for the PSEi still stands at 7,200.
Rest assured that we at FAMI and the First Metro Group are doing our best to continue to manage your funds with a healthy balance of risk and prudence. We hope that this commentary gives you peace of mind on recent market developments and a glimpse of our strategy moving forward.
Thank you.
ANNOUNCEMENT: SALEF SHAREHOLDERS MEETING
Please don’t forget to submit your Proxy Forms for the Annual Shareholders Meeting of the
FIRST METRO SAVE AND LEARN EQUITY FUND!
Hope you have received yours in the mail earlier this week! If not, they can be downloaded below.
Please note that this is a Shareholders Meeting of ONLY one fund and we will still hold ANOTHER Shareholders Meeting for the other funds in the near future
Date: Thursday, May 23, 2013
Time: 2:00pm
Venue: PSBank Hall, 19/F PSBank Center, 777 Paseo de Roxas cor Sedeno. Salcedo Village, Makati.
Hope you have received yours in the mail earlier this week!
Please note that this is a Shareholders Meeting of ONLY one fund and we will still hold ANOTHER Shareholders Meeting for the other funds in the near future
Thanks!
The Market Call – April 2013
We are pleased to release the April issue of The Market Call, as published by the FMIC & UA&P Capital Markets Research. This is a result of an in-depth analysis on the emerging and leading trends in the global and local markets that have shaped the direction of the Philippine capital markets in the last four weeks.
The Bellwether – Issue 24
Releasing the 24th issue of The Bellwether, as published by FMIC’s IAG-Research.
This is a fortnightly publication on market action and outlook.
The following are the highlights of the issue:
Strong start for 1Q2013 earnings
Manila Electric Company (Meralco) achieves 1Q2013 core earnings growth of 18% to Php4bn on flat energy sales
DMCI Holdings, Inc. (DMC) infra book swells from Php14bn to a likely Php57.5bn
The Bellwether – Issue 23
Releasing the 23rd issue of The Bellwether, as published by FMIC’s IAG-Research.
This is a fortnightly publication on market action and outlook.
The following are the highlights of the issue:
Corporate earnings growth to accelerate
Filinvest Land, Inc. (FLI) backed by robust economy
Vista Land and Lifescapes, Inc. (VLL) sees 20% earnings growth to Php5.2bn
Announcements!
- FAMI Historical Yields
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