Last Tuesday Philam asset Management Inc. (PAMI) announced that investments in the mutual fund companies under its wings are safe. They will not be affected by troubles facing by the company’s parent company, American International Group (AIG).
mutual fund companies are legal entities of their own and are required to get third-party custodians to handle the funds, acccording to Karen Liza M. Roa.With her telephone interview with Inquirer she explained that should AIG close its doors under a worst-case scenario, but the Mutual fund company itself will merely get a new fund manager.
mutual fund companies are legal entities of their own and are required to get third-party custodians to handle the funds, acccording to Karen Liza M. Roa.With her telephone interview with Inquirer she explained that should AIG close its doors under a worst-case scenario, but the Mutual fund company itself will merely get a new fund manager.
Under Philippine laws, mutual fund companies have separate and independent members in the board of directors and are required to follow the investment restrictions of the Securities and Exchange Commission and the Philippine Investment Company Act. This includes the obligation to buy back any shares that its investors want to redeem.
PAMI is the second-biggest mutual fund management company in the Philippines, with around P19 billion assets under management.
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