PAMI offers investment, savings options to OFWs

The Philam Asset Management Inc. (PAMI) is offering savings and investment opportunities from earnings of the eight million overseas Filipinos.

With a record $14.45 billion remitted in 2007, it is definitely no surprise that consumer spending also increased significantly. Gross domestic product (GDP) in the same year grew by 7.3 percent – the highest the country has ever had in 31 years.

However, as overseas Filipinos and their families prioritize the essentials and lifestyle expenditures in the distribution of remittances, but neglect investing or saving for the future.

PAMI executive vice president Gina Goco-Morales said that spending on basic necessities like education and housing is very real.

“But to make their sacrifices even more worthwhile, overseas Filipinos and their beneficiaries should also learn to set aside some money after they have spent for their needs,” Morales added.

Data from the Bangko Sentral ng Pilipinas (BSP) show that more overseas Filipinos’ families are setting aside money for savings and financial investments, but these figures are still low. Only one in three households save money in the bank, while only three-percent buy financial instruments.

Such behavior is perhaps reflective of the nation’s overall attitude toward spending. Filipino household expenditures were greater than their income in 2006, with an average savings of only P25,000 per family – which comes mainly from families with the highest annual income, who reported P156,000 in average savings per family.

Morales said that overseas Filipinos and their beneficiaries are slowly becoming financially literate. And PAMI wants to add more opportunities through the Personal Investment Program (PIP).

With PIP, small investors can make monthly contributions, which their monthly budget could accommodate. For employees of company-endorsed PIP, the minimum initial investment is only P1,000, with required minimum participants per company of 10 employees. On the other hand, minimum initial investment for individuals is P10,000.

For both cases, minimum amount for succeeding investments is only P1,000 monthly over a specified term (e.g. 12, 18, 24, etc. months).

“Although we are singling out OFWs, we have to emphasize that Filipinos in general need more guidance when it comes to handling money as we are predisposed to spending.

We tend to indulge and spend on things we want but do not actually need. A combination of this consumerist attitude, our mañana habit of postponing what can be done today for tomorrow, and our being unaware, if not ignorant, of the investment options available in the market can altogether spell disaster for our future financial security,“ the PAMI executive said.

As the country’s leading mutual funds firm, PAMI currently administers, distributes and provides investment advisory to six mutual funds: the Philam Bond Fund Inc. (PBF), the Philam Dollar Bond Fund (PDBF), the Philam Managed Income Fund Inc. (PMIF), the Philam Fund Inc, (PFI), the Philam Strategic Growth Fund Inc. (PSGF), and the GSIS Mutual Fund Inc. (GMFI).