Author Topic: What if AIG becomes bankrupted -What will you do?  (Read 159 times)

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Offline MoneyRepublic

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What if AIG becomes bankrupted -What will you do?
« on: October 18, 2008, 05:09:29 AM »
Hi guys, according to some financial news around we know that AIG has been downgraded by the rating agencies and is currently facing difficult times. And we also know that AIG is the parent company of Philam Life..

Now, just in case the unthinkable "bankruptcy" happens, what would you do?
Just want to know how what are the views of other people on this forum. So is it possible that philam life be affected and in what way?

Pls share your ideas.


Thanks, :)  :)  :)  :)  :)  :)  :)  :)  :)

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What if AIG becomes bankrupted -What will you do?
« on: October 18, 2008, 05:09:29 AM »

Mountain View

Offline Corps

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Re: What if AIG becomes bankrupted -What will you do?
« Reply #1 on: October 18, 2008, 05:42:27 AM »
Yeah i heard about it too... here\'s the news i got from Inquirer. It\'s something we should ponder because it\'s our investment. Pano nga kung mabankrupt sya ... patay tayo dyan diba?


Quote
Philam mutual fund company says funds are safe

By Ma. Salve Duplito
INQUIRER.net
First Posted 10:57:00 09/16/2008

MANILA, PHILIPPINES—The Philam Asset Management Inc. (PAMI) said Tuesday investments in the mutual fund companies under its wings are safe and will not be affected by troubles facing American International Group (AIG), the company’s parent company.

Karen Liza M. Roa told INQUIRER.net in a telephone interview that under Philippine laws, mutual fund companies are legal entities of their own and are required to get third-party custodians to handle the funds.

“Yes, your investments are safe…It’s not the funds that are in trouble, it’s the fund manager’s parent company. We should all be very clear on that,” she said.

This means that should AIG close its doors under a worst-case scenario, PAMI may close shop but the fund itself will merely get a new fund manager.

PAMI is the second-biggest mutual fund management company in the Philippines, with around P19 billion assets under management.

“(Investments in PAMI-managed mutual funds) are not co-mingled with ours,” Roa said.

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.

“If you take a look at your investments, they are in Philippine blue chips and in Philippine prime grade fixed income. Citibank is our third-party custodian,” Roa said.

AIG, one of the biggest insurance companies in the world, is the latest financial services company battered by the turmoil in the US housing and credit markets.

Offline JusticeLeague

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Re: What if AIG becomes bankrupted -What will you do?
« Reply #2 on: October 18, 2008, 08:42:29 AM »
Here\'s another news i got..


Insurance Commission Affirms Stability and Strength of Philamlife

Quote
Manila, September 16, 2008 – Following the current financial issues facing the American International Group, Inc. (AIG), mother company of the Philippine American Life and General Insurance Company, the Insurance Commission issued a statement affirming the stability and strength of Philamlife.
According to Insurance Commissioner Eduardo T. Malinis, “Philamlife remains to be the largest insurance company in the Philippines with the strongest balance sheet in the industry. Philamlife is adequately capitalized and its customers’ and policyholders’ interests are protected with the company’s financial strength. With its vast resources, Philamlife is capable of meeting its commitments and obligations to its clients.”
Philamlife’s investments are concentrated in marketable Philippine government securities, corporate bonds, and blue chip equities.

 

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