Download 08.20.09-salef - First Metro Asset Management Inc

First Metro Asset Management, Inc.
NAVPS: 1.7781
August 20, 2009
Weekly Performance Report
Performance from 07.11.08 to 08.20.09
Suitable for investors seeking . . .


Moderate growth with moderate risk.
To invest in an actively managed portfolio of
selected stocks with strong balance sheets and
attractive valuations.
NAVPS
To provide growth through long-term capital appreciation
by investing in equity securities.
2.1600
2.0800
2.0000
1.9200
1.8400
1.7600
1.6800
1.6000
1.5200
1.4400
1.3600
1.2800
1.2000
Fund Manager’s Report 08.11.09
We believe this rally will sustain because:
1. “liquidity” will return to Asia. Investors are
convinced that Asia will emerge from the
recession sooner. Inasfar as the Philippine
economy is concerned, global economists expect
the Philippines to be 1 of only 4 economies where
GDP will record positive growth in 2009 and
recover strongly next year;
2. cash will chase equity as interest rates stay
low. The gap between the yields on earnings (as
gauged by the inverse of price-earnings ratio) and
money market remains wide, i.e. investors are
shifting away from money market to stocks due to
the low returns of the former combined with the
positive momentum of equities. “Free liquidity” (or
the supply of cash that is in excess of what is
needed to fund the economy) will add to the cash
(that will chase equity). In recent years, the
growth of money supply has outpaced the rate at
which the economy has been producing goods
and services. Excess cash will find its way into
stocks, resulting in higher prices; and most
importantly,
3. any correction in stock prices will not turn into a
reversal of the rally because Philippine equities
are re-rating higher. Moody’s upgrade of the
country’s foreign and local currency government
ratings to two notches below investment grade
merits a re-rating of Philippine equities as well.
7/11/2008
7/26/2008
8/10/2008
8/25/2008
9/9/2008
9/24/2008
10/9/2008
10/24/2008
11/8/2008
11/23/2008
12/8/2008
12/23/2008
1/7/2009
1/22/2009
2/6/2009
2/21/2009
3/8/2009
3/23/2009
4/7/2009
4/22/2009
5/7/2009
5/22/2009
6/6/2009
6/21/2009
7/6/2009
7/21/2009
8/5/2009
8/20/2009
Fund objective
Cumulative performance %
(as of August 20, 2009)
7-day
30-day
60-day
YTD
Save & Learn Equity Fund
-1.74%
2.56%
4.47%
27.16%
Average of other funds
-2.40%
4.01%
10.12%
33.56%
Top holdings
Stock
AP
RLC
PNB
FLI
SCC
AC
GMAP
EEI
ACPA
EDC
(as of August 14, 2009)
Sector
Independent Power Producers
Property
Banks
Property
Mining
Mutisector Holdings
Media
Construction & Engineering
Holding Firms
Independent Power Producers
%
10.45%
9.33%
8.68%
8.62%
7.75%
7.29%
7.14%
3.01%
3.00%
2.72%
Selected features
Base currency
Philippine peso
Minimum initial
investment
PhP 5,000.00
Minimum additional
investment
PhP 1,000.00
Management fee
1.75%
Buying / Selling price
Based on the Fund’s prevailing
net asset value per share
Sales load and redemption fees apply.
5,000 – less than 100,000
2.0%
100,000 – less than 500,000
1.5%
500,000 – less than 2,000,000 1.0%
2,000,000 and above
0.5%
Investmert Period
Redemption fees:
<180 days
1.0%
>180 days
0.0%
Past performance is not indicative of future performance. Investment
involves risk. Please refer to the prospectus for details.
About us
First Metro Asset Management, Inc. (FAMI) is a joint venture between:

Catholic Education Association of the Philippines (CEAP) 15%

Marist Development Foundation 15%

First Metro Investment Corporation (FMIC) 70%
First Metro Investment Corporation (FMIC), a Metrobank subsidiary, is a financial institution specializing in
investment banking services. It has been rated as the

Best Domestic Bond House 2004 & 2005 (The Asset Magazine, HK)

Best Investment Bank 2005 (Finance Asia, HK)

Best Bond House 2005 (Finance Asia, HK)
For more information, visit or contact:: First Metro Asset Management Inc. 18th Floor, PS Bank Center, 777
Paseo de Roxas Street, Makati City Tel Nos. 891-2860 to 65.