First Metro Asset Management Inc

2015-05-29 – Closing thoughts for the week:

The “Sell in May“ phenomenon seems to have lived up to its name. After closing at an all-time high level of 8,127.48 in April 10, the PSE index has fallen by as much as 7.7% to a low of 7,505.03 in May 28. But more than the seasonality effect, the correction could be attributed to the following factors:

– Premium valuation for the PSEi could not hold as 1Q15 earnings results were pedestrian and mostly in-line. The PSEi at the 8,000 level was trading at 20x forward PE and it needed much better earnings results to sustain the elevated valuation levels.

– 1Q GDP growth came in at 5.2% year-on-year, way below market expectation of 6.6%. The main drags were slower growth in government spending and wider net exports deficit. In addition, the consumption boost that was expected due to low oil prices and inflation in 1Q15 did not seem to have had a significant impact on spending.

What should investors do:

– First of all, do not panic. The short-term headwinds would not change the long-term fundamental outlook for the Philippines. Though there could be some scope for downward revision on economic growth and corporate earnings growth, we reiterate our long-term bullish view on the Philippine economy and the market.

– In fact, this correction should be considered as a window of opportunity to buy shares at cheaper prices. This is a perfect time for our existing investors to peso-cost average and an excellent entry point for those who have been waiting in the sidelines.

How are the funds positioned?

– We recognize the potential volatilities that may arise due to the factors mentioned above and other external developments such as the anticipation of a US Fed rate hike. As a result, we have taken profits and reduced our equity exposures for SALEF and SALBF respectively. We will re-deploy the cash and employ selective bargain hunting during market selloffs.

Fund Fact Sheets – May 22, 2015

Fund Fact Sheets for May 22, 2015

SALEF

SALBF

SALFIF

Upcoming Free Davao Seminar!

Seminar - DavaoDate:     May 28, 2014
Title:    LEARNING MONEY MANAGEMENT BASIC AND MUTUAL FUND PRESENTATION
Time:     530PM to 7PM
Seats: Maximum Seats 25

Attendance is free but seats are limited!
Book your seat today! Eventbrite - Learning Money Management Basics and Mutual Fund Presentation

Upcoming Binondo Seminar

Seminar - BinondoDate:     May 28, 2015
Title:      Investment Literacy Program: A Mutual Fund Presentation
Time:     3PM to 5PM
Seats:    Maximum Seats 25

Attendance is free but seats are limited! Book now!
Eventbrite - Binondo Seminar - Investment Literacy Program: A Mutual Fund Presentation

Fund Fact Sheets – May 15, 2015

Fund Fact Sheets for May 15, 2015

SALEF

SALBF

SALFIF

Upcoming Cebu Seminar! Basics of Stock Trading – May 29, 2015

Seminar - CebuBasics on Stock Trading
May 29, 2015
5:30-7:00pm
50 pax

Attendance is free but seats are limited!

Book your seats today!

Eventbrite - Basics on Stock Trading

Fund Fact Sheets – May 8, 2015

Fund Fact Sheets for May 8, 2015

SALEF

SALBF

SALFIF

FAMI Client Servers and Portal Down for Scheduled Maintenance

FAMI_MaintenanceHello everyone!

Please be informed that our online FAMI portal and client servers are currently undergoing scheduled maintenance and will be unavailable.

We will notify you when these services will be up and running!

UPDATE: Our servers are now up and running as of Monday morning. Thanks for your patience!

Upcoming Davao Seminar – May 14, 2015

Seminar - DavaoDate:     May 14, 2014
Title:    How to Save for your Future and Mutual Fund Presentation
Time:     530PM to 7PM
Seats: Maximum Seats 25

Attendance is free but seats are limited! Book your seats here! Eventbrite - Davao Seminar - Investment Literacy Program - Basics of Mutual Funds

Fund Fact Sheets – April 30, 2015

Fund Fact Sheets for April 30, 2015

SALEF

SALBF

SALFIF

First Metro Asset Management Inc