FAMI launches consumer-themed index
FIRST METRO Asset Management, Inc. ( FAMI) launched on Tuesday an index composed of stocks that capture the consumption behavior of Filipinos.
The wholly owned subsidiary of First Metro Investment Corp., which serves as the investment banking arm of the Metrobank Group, has partnered with global firm MSCI, Inc. to set up the First Metro Index. This is comprised of 18 stocks in companies which generate revenues based on the consumption expenditure of Filipinos.
“We want to give local investors more opportunities for capital markets appreciation. We also wish to transform Filipinos from mere savers to smart investors. We hope this index will encourage greater participation in the equities market... All investors need to do is follow the index and this gives them an alternative benchmark,” FAMI President Augusto M. Cosio said in a statement.
In a press launch in Makati City on Tuesday, FAMI unveiled the top 10 stocks in the index, including Ayala Land, Inc., SM Prime Holdings, Inc., BDO Unibank, Inc., Ayala Corp., and PLDT, Inc., among others.
“The index is produced out of the 18 constituents. Family and private consumption expenditure which is 70% of GDP ( gross domestic product) is captured by the companies there... because consumer spending natin nandito,” Mr. Cosio told reporters after the index’s launch yesterday.
“The general idea is that it is replicable by everybody, local and foreign,” Mr. Cosio added.
FAMI has been working on the index with MSCI since 2016, when it hovered above the 1,000 level. To date, the index is currently at 1,078.31. Mr. Cosio noted they will be releasing daily reports of the index’ close.
FAMI said the establishment of the index comes at a time when the Philippine economic growth is being fueled by the consumer sector. The company cited the country’s per capita GDP of $ 3,000, rising on the back of greater household consumption.
“Government policy reforms are being carried out to spur investment spending which will provide ample fuel for rise in per capita income. Income taxes for 91% of the salaried class will be reduced and the P91-trillion infrastructure program of the Duterte administration is certain to create new jobs,” FAMI said.
The creation of the index also forms part of FAMI’s advocacy of capital market development.
“Eventually, we can put up a fund. Kikita kami sa fund, pero hindi sa index,” Mr. Cosio said. -