AIA 2012 Philam Life VUL Report PH

May 2013
Dear Valued Policyholder,

We are pleased to present to you Philam Lifes Variable Unit-Linked
(VUL) Fund Annual Report for 2012 containing the performance
of Philam Lifes various VUL funds amidst a favorable economic
environment and prevailing low interest rates.
As a market overview, the Philippine economy performed very well in
2012 with GDP growth at 6.6% from 3.9% in 2011. The Philippines had
the second fastest growth in Asia next to China. Economic growth can
be attributed to strong consumer spending, recovery of the export
sector, stable OFW remittances, and improved sovereign credit rating
which in turn can translate into more investments in the country.
Inflation remained within BSPs range averaging at 3.1%. The peso was
also the second best performing currency in Asia as it strengthened
by 6.7% and ended at PHP41.05/ USD. Prudent monetary policies
positively affected the economy even as the local interest rates
continued to trend downwards settling at a low of 3.5% by yearend.
Amidst the prevailing low interest rate environment, Philam Lifes VUL
funds registered the following returns in 2012: 24.4% for Philam Life
Equity Fund (PHP), 23.9% for Philam Life Balanced Fund (PHP), 7.3%
for Philam Life Fixed Income Fund (PHP), 10.1% for Philam Life Dollar
Bond Fund (USD), and 11.7% for Philam Life Global Bond Fund (USD).
Overall, 2012 was a good year for Philam Life, as we capitalized on our
growth momentum from 2011. Gross Premiums amounted to PHP15.4
billion, an increase of 13% from previous year. Total Assets stood at
PHP193.2 billion, 9.4% growth vs. last year. Net Investment Income
grew by 4.2% to PHP11.8 billion. Total Revenue was at PHP30.2
billion, a 2.7% increase over previous year. Net Insurance Benefits and
Claims payments totaled PHP18.7 billion.
In 2013, expect a bigger and bolder Philam Life as the company
embarks on strategies to ensure its competitiveness in todays
business environment. These include building a premiere agency
force; growing bancassurance; developing more products and services
that cater to the changing needs of our customers, and moving our
offices to progressive business districts around the country.
Given the countrys growing economy, it is important that you trust
your future with the countrys premier life insurance company, Philam
Life. Contact your financial advisor to see how Philam Life can go even
further in empowering you to achieve financial security and prosperity.
Please do not hesitate to call us at (+632) 528-2000 or e-mail us at
philamlife@aia.com. You may also visit our website at philamlife.com
or go to any Philam Life branch office nationwide for assistance.
Very truly yours,
REX A. MENDOZA
President and CEO
Philam Life Variable Funds
GENERAL MARKET REVIEW

At the start of the year, there was optimism on global economic
growth as data from the United States indicated recovery. However,
this was proven temporary as market sentiment was dampened by
renewed concerns over Europes worsening debt crisis, slowing
economies and signs of weakness in China. Political issues arising
from the U.S. presidential election and fiscal cliff concerns, together
with new leadership in China, also provided uncertainty on future
policy conviction. As economic growth undershot expectations,
major central banks pushed for more supportive policy led by the U.S.
Feds third round of quantitative easing and the European Central
Banks (ECB) new Outright Monetary Transactions (OMT) instrument.
Towards the end of the year, a stable but low interest environment
persisted with lower risk premium on the back of improving economic
situations in Europe and China .
Despite global markets anxiety over Europe initially and over the
U.S. towards year-end, both equity and bond markets closed the
year higher as the S&P500 and Dow Index increased by 11% and 6%,
respectively, while the 10-year U.S. Treasury notes tightened further
by 19bps to yield 1.76%.
Meanwhile, the Philippine economy, which proved its resilience
to the lackluster global economy, ended on a high note in 2012
as Gross Domestic Product (GDP) grew 6.6% from 3.9% in 2011.
Being the second fastest growing economy in Asia, the Philippines
outperformance was mainly driven by strong consumption,
accelerated government spending and sustained recovery in exports.
Overseas Filipino remittance flows continued to boost consumer
demand as it rose 6.3%, reaching USD21.4 billion for the full year
and exceeding government forecast of 5.0%. Increased trust in
the Aquino administration also supported an upbeat business and
consumer sentiment for the year. Public spending and tax collection
efficiency has dramatically increased since the President assumed
office in 2010. As a result, even with sustained public spending to
support domestic demand, the government has reduced its national
debt steadily. The 2012 budget shortfall recorded PHP243 billion
which is 13% lower than the PHP279 billion target. With these
developments and positive credit rating upgrades from S&P and
Moodys to just one notch below investment grade, the Philippines
is well on its way to be awarded an investment grade status in 2013.
Aside from effective fiscal management, the Bangko Sentral ng
Pilipinas (BSP) employment of prudent monetary policy tools
also bolstered the economys stellar performance. With the BSPs
commitment to stimulate economic growth, it reduced its policy
rate by 100bps to settle at 3.5% by yearend. Together with a benign
inflation environment, this move helped buffer domestic demand
against global economic headwinds and kept the peso appreciation
manageable. Inflation remained within the BSPs target range in
2012 as it averaged 3.12%. Meanwhile, the peso was the second best
performing currency in Asia as it strengthened 6.73% to end the year
at PHP41.05/USD.
LOCAL MARKET
Equities Market
The PSEi started the year strong as market sentiment was upbeat
despite the ever-present headwinds from the global economy.
However, the mood was dampened because of renewed fears
regarding the possible impact of the persistent economic problems
of Greece to the Eurozones already anemic situation. Nonetheless,
PSEi closed 2012 at 5,813, a 33% gain for the year. Foreigners bought
USD1.95 billion in PH stocks (net) for the year. Average daily traded
value rose 38% to an unprecedented USD159 million from USD115
million in 2011.
2012 saw the addition of Petron and deletion of Cebu Pacific in
the index. 24 index members ended the year in the green while 7
declined. The index leading performers were Robinsons Land Corp.
(+83.63%), Universal Robina Corp. (+74.69%), Ayala Land Inc.
(+74.47%) and Bank of the Philippine Islands (+72.10%).
The market saw positioning in Construction/Cement and Media in
December, in light of expected ramp-ups in Public-Private Partnership
(PPP) spending and media coverage of the upcoming congressional
elections.
We see the Index targeting 7,370 by year-end, assuming that:
(1.) real GDP growth is at least 5.7% for the year, (2.) inflation
accelerates mildly, (3.) interest rates decline slightly from end-2012
levels, (4.) dividend payouts increase somewhat, and (5.) PHs risk
premium declines further as the country aligns with rating agencies
expectations.
Bond Market
Local interest rates continued to trend lower in 2012 as market
liquidity and positive sentiment lifted peso bond prices to record
highs. By managing its debt maturity profile, the Bureau of
Treasury (BTr) was able to achieve improved liquidity and pricing in
long-term peso bonds. The debut of 15-, 20- and 25-year Retail
Treasury Bonds (RTBs) in 2012 has given retail investors access
to long-term higher-yielding investment alternatives amid a low
interest rate environment. In February, the 15- and 20-year RTBs
were issued at coupon rates of 5.375% and 5.875%, respectively,
while the 25-year RTB was issued in November at a coupon rate of
6.125%. Amid overwhelming demand, the government was able to
raise PHP367.796 billion from both auctions.
With benign inflation and the BSPs reduction in its policy rates, more
investors were compelled to shift to government bonds. At the close
of the year, the short-, intermediate-, and long-term peso yields have
declined by an average of 111.21bps, 96.83bps and 76.80bps from
year ago levels, respectively. The 1-year benchmark yield ended the
year at 0.9885%, 5-year benchmark yield at 4.1058% and the 10-year
benchmark yield at 4.40%.
In line with efforts to create an inter-ASEAN trading platform, the

countrys Capital Market Development Council convened financial
sector representatives to identify reforms needed for the local debt
market. Among the initiatives identified was the unification of
taxation of government bonds by adopting a single price convention
that will allow tax-exempt bond holders to trade with non-tax
exempt investors, thereby enhancing liquidity and improving market
pricing. Finalization of rules has been deferred indefinitely, though,
until major issues such as portfolio valuation have been resolved.
Moving to 2013, we expect risk appetite to improve as global

economic growth modestly picks up. In this largely risk-off scenario,
we expect that the ongoing search for yield to be more favorable to
BBB/BB, high-yield (HY) credits. Bond returns would likely come
from yield accruals rather than significant capital gains. The fund
strategy is to remain overweight in Asia, and to shorten duration to
reduce the impact of a possible steepening in the yield curve.
GLOBAL MARKETS
Philam Lifes variable life funds are managed by Philam Lifes team
of investment professionals who have 20 to 30 years of experience
and expertise in the field of fund management. As of December 31,
2012 total assets under management reached over PHP 13.3 billion,
excluding those of other Philam affiliates. Philam Life combines its
expertise with the strength of its senior management to manage
portfolios effectively in order to achieve favorable returns.
Europe was on everyones mind as we entered the year as Greece, after

much back and forth negotiations among European finance ministers,
managed to get a bailout early in the year. Concerns on the Eurozone
flared up once again in the 2nd quarter as Italian and Spanish yields
soared under pressure fueling anxiety about their ability to refinance
their debt and adding pressure to the European financial crisis. To
turn the tide, ECB President Mario Draghi announced an unlimited
bond purchase program to help ease borrowing costs for Spain and
Italy. This rhetoric stemmed further worries about refinancing costs
of peripheral European countries and helped abate the Euro crisis.
Aside from the ECB, several central banks (Bank of Japan, Federal
Reserve, Bank of Canada, Bank of England, etc.) voiced out
pronouncements that they stand ready to take steps to contain any
crisis which may cause global growth to falter. Such joint rhetoric
reassured investors that central banks were willing and able to step
in to provide growth stimuli to the global economy if needed.
Finally, the Federal Reserve introduced several new measures in the
past year to continue to support economic growth, most notably a
third round of its open-ended Quantitative Easing (QE) program.
This round of QE though, unlike the previous two, started out with
purchases in mortgage-backed securities which helped bring down
mortgage costs, and was further supplemented at the end of the year
with increased purchases of U.S. Treasuries. Another measure the Fed
introduced in line with QE3 was the setting of economic indicator
thresholds 6.5% unemployment and inflation below 2.5% which
have to be crossed to signal any impending future rate hikes.
As a result of continued monetary easing by global central banks,
Emerging Markets (EM) sovereign debt performed well as the JP
Morgan Emerging Bond Index gained 12% for the year. Spreads
continued to tighten as investors searched for return in the low-yield
environment. Asian High Grade debt performed as well, as the HSBC
Asian High Grade Bond Index grew by 11% for the year while Asian
High Yield debt outperformed its EM counterpart by growing 18% for
the year. Global monetary easing had a great impact on fund flows
as seen by EM hard currency bond flows for 2012 which surpassed
the previous year and was the highest level since the data started
recording at USD36 billion. EM local currency flows attracted sizable
inflows at USD15 billion. Even developed market bond funds were
strong in 2012 attracting USD418 billion.
FUND MANAGERS
Financial Statement
As of December 31, 2012
STATEMENT OF ASSETS AND LIABILITIES

Philam Life Peso Variable Funds in PHP
ASSETS
Cash and cash equivalents
Financial assets at FVTPL*
Loans and receivables
Accrued income
Other Assets-net
LIABILITIES
Accounts payable and accrued expense
Other Liabilities-net
Net Asset Value (NAV)
Philam Life
Fixed Income Fund
Philam Life
Equity Fund
Philam Life
Balanced Fund
265,480,108
1,631,687,832
289,675,556
32,463,180
524,958
2,366,527,708
4,858,805,467
6,614,651
18,445,463
677,769,837
2,271,169,775
154,657,778
4,864,254
112,229
2,219,831,633
7,250,393,289
3,108,573,873
3,574,511
7,429,652
73,543,383
21,443,978
23,727,006
7,483,277
11,004,163
94,987,361
31,210,283
2,208,827,471
7,155,405,928
3,077,363,590
PAMI Philam
Bond Fund
PAMI Philam Strategic

Growth Fund
PAMI Philam Fund
ASSETS
1,593,789
24,836,216
3,045,559
1,593,789
24,836,216
3,045,559
Growth Invest Tr. 1
Growth Invest Tr. 2
ASSETS
508,160,800
214,647,780
54,797,750
508,160,800
214,647,780
54,797,750
*Fair Value Through Profit or Loss
Growth Invest Tr. 3
Financial Statement
As of December 31, 2012
STATEMENT OF ASSETS AND LIABILITIES
Philam Life Dollar Variable Funds in USD

Philam Life
Global Bond Fund
Philam Life
Dollar Bond Fund
ASSETS
Cash and cash equivalents
Loans and receivables
Accrued income
Other Assets-net
LIABILITIES
Accounts payable and accrued expense
Other Liabilities-net
Winning Edge Tr. 1
$7,981,950
65,880,162
991,979
749,946
$3,110,026
8,968,722
91,117
148,764
$75,604,037
$12,318,629
90,734
1,197,037
19,057
33,343
$1,287,771
$52,400
$74,316,266
$12,266,229
Winning Edge Tr. 2
Winning Edge Tr. 3

(Emerging Markets)
ASSETS
$8,732,237
$4,617,585
$6,025,945
$8,732,237
$4,617,585
$6,025,945
Asias Best Tr. 1
Asias Best Tr. 2
ASSETS
$3,954,935
$4,066,596
$9,561,683
$3,954,935
$4,066,596
$9,561,683
*Fair Value Through Profit or Loss
High-Water Mark
Fund 2019
Philam Life Equity Fund
Philam Life Fixed Income Fund

Fund Inception Date: November 10, 2004
Fund Inception Date: November 10, 2004
The Philam Life Fixed Income Fund (PFIF) is a PHP-denominated investment fund
created for variable life insurance contracts issued by The Philippine American Life and
General Insurance Company (Philam Life). It is an investment option for the variable
life policyholder with a preference for investing in high-quality interest-bearing debt
instruments that present low to moderate levels of risk. The investment objective of
the Philam Life Fixed Income Fund is to provide stable income over the medium- to
long-term, and preserve capital by investing primarily in PHP - denominated
fixed-income securities issued by the government and reputable corporate issuers.
The Philam Life Equity Fund (PEF) is a PHP-denominated investment fund created for variable
life insurance contracts issued by The Philippine American Life and General Insurance
Company (Philam Life). This investment option is for the variable life policyholder with
an investment objective of capital appreciation over a long-term investment horizon, and
the risk appetite for the stock market. The investment objective of the Philam Life Equity
Fund is to achieve capital growth by investing in an efficient and diversified portfolio of
predominantly growth companies while including appropriate value stocks.
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
2009 Return
2008 Return
2007 Return
2006 Return
2005 Return
3 Year Return (annualized as of Dec 31, 2012)
Return since Inception (as of Dec 31, 2012)
7.37%
11.05%
10.46%
7.45%
-1.92%
1.11%
17.88%
16.04%
9.62%
6.78%
92.67%
* Fund returns are calculated based on Net Asset Value per Unit
Past performance is not indicative of future performance.
PORTFOLIO STATISTICS (as of Dec 31, 2012)

Net Asset Value (NAV in PHP)*
Net Asset Value per Unit (NAVPU)
Weighted Duration (in years)
Weighted Tenor/Maturity (in years)
Weighted Average YTM
2,208,827,471**
1.9269**
8.59
13.64
5.58%
* NAV is net of 2% fund management charge, transaction costs, and audit fees.
** Based on Audited Financial Statement
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
2009 Return
2008 Return
2007 Return
2006 Return
2005 Return
24.44%
0.31%
49.15%
41.47%
-36.97%
19.56%
40.97%
12.54%
23.02%
10.67%
218.31%

7,155,405,928**
3.1834**
PORTFOLIO MIX* (as of Dec 31, 2012)

Cash & Cash Equivalents
Common Stocks
32.75%
67.25%
* Excluding accrued income
COMMON STOCKS (as of Dec 31, 2012)

Philippine Issued Peso Government Bonds
Corporate Securities
11.91%
74.20%
13.89%
FIXED INCOME SECURITIES (as of Dec 31, 2012)

Issue
Maturity
PH Issued PHP Govt Bonds
SM Prime FRCN
Ayala Corp FRCN
Smart Comm FRCN
% of Portfolio
7/19/2031
10/24/1937
1/19/2022
10/20/2025
4/14/2019
2/15/2018
3/19/2022
1/19/2026
5/27/2030
2/20/2023
26.55%
16.17%
14.47%
4.09%
4.08%
3.26%
3.01%
2.39%
2.12%
1.90%
FRCN - Fixed Rate Corporate Note
RETURN SINCE INCEPTION*
Issue
First Gen Corporation
JG Summit Holdings Inc
BDO Unibank Inc
Metro Pacific Investments Co
SM Investments Corporation
Phil Long Distance Tel Co
GT Capital Holdings Inc
DMCI Holdings Inc
Nickel Asia Corporation
Energy Development Corp
% of Portfolio
5.88%
5.43%
4.82%
4.54%
4.09%
3.70%
3.68%
2.69%
2.65%
2.48%
COMMON STOCKS by SECTOR (as of Dec 31, 2012)

Sector
Financials
Utilities
Industrials
Telecommunication Services
Materials
Energy
Consumer Discretionary
% of Portfolio
23.56%
14.87%
15.21%
4.82%
5.79%
2.68%
0.31%
100%
90%
80%
70%
60%
Dec-12
Oct-11
Aug-10
Jul-09
May-08
Mar-07
Jan-06
Dec-12
Oct-11
Aug-10
Jul-09
May-08
Mar-07
Jan-06
Nov-04
50%
40%
30%
20%
10%
0%
Nov-04
240%
220%
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
Philam Life Balanced Fund
Philam Life Dollar Bond Fund
Fund Inception Date: May 22, 2007
Fund Inception Date: July 12, 2005
The Philam Life Balanced Fund (PBAL) is a PHP-denominated investment fund created
for variable life insurance contracts issued by The Philippine American Life and General
Insurance Company (Philam Life). This investment option is for the variable life
policyholder with an investment objective of long-term capital appreciation by investing
primarily in PHP-denominated equities, equity-related securities and debt securities.
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
2009 Return
2008 Return
23.90%
1.34%
41.93%
34.07%
-30.39%
21.24%
10.71%
68.09%

3,077,363,590**
1.6809**
The Philam Life Dollar Bond Fund (PALDBF) is a USD-denominated investment fund
created for dollar variable life insurance contracts issued by The Philippine American Life
and General Insurance Company (Philam Life). The Philam Life Dollar Bond Fund is an
investment option for the dollar variable life policyholder with a preference for investing
in Philippine government and corporate fixed-income securities. The Fund aims to
provide income growth while maintaining moderate liquidity over the medium- to longterm investment horizon.
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
2009 Return
2008 Return
2007 Return
2006 Return

Philippine Issued Peso Government Bonds
Corporate Securities
Common Stocks

Net Asset Value (NAV in USD)*
21.81%
2.39%
4.97%
70.83%
COMMON STOCKS (as of Dec 31, 2012)

Issue
BDO Unibank Inc
DMCI Holdings Inc
Energy Development Corp
% of Portfolio
6.12%
4.93%
4.89%
3.91%
3.80%
3.50%
3.17%
3.14%
2.83%
2.79%

Sector
Ayala Corp FRCN
2/15/2018
2/20/2023
Smart Comm FRCN
3/19/2022
SM Inv FRCN
1/4/2018
10/20/2025
2/19/2019
SM Prime FRCN
4/14/2019
Universal Robina FRCN
3/27/2014
PLDT FRCN
5/29/2023
% of Portfolio
2.46%
1.36%
1.06%
0.97%
0.48%
0.39%
0.29%
0.19%
0.16%
74,316,266**
2.0352**
7.87
11.39
2.55%

Philippine Issued Dollar Government Bonds
US Treasury Notes
10.81%
86.52%
2.67%
PHILIPPINE SOVEREIGN SECURITIES (as of Dec 31, 2012)

Issue
Maturity
PH Issued US$ Govt Bonds
6/17/2019
1/14/2031
2/2/2030
1/13/2037
1/20/2020
3/30/2026
1/15/2021
10/23/2034
3/16/2025
% of Portfolio
18.65%
11.79%
9.95%
9.84%
9.67%
8.55%
6.09%
5.69%
2.98%

120%
100%
80%
65%
55%
45%
35%
25%
15%
5%
-5%
-15%
-25%
-35%
10.14%
6.60%
9.55%
15.29%
-2.43%
5.53%
17.43%
8.75%
7.67%
103.40%
60%
40%
20%
Dec-12
May-12
Sep-12
Sep-11
Jan-12
May-11
Sep-10
Jan-11
Jan-10
May-10
Sep-09
Jan-09
May-09
May-08
Sep-08
Sep-07
Jan-08
May-07
Jul-05
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jun-11
Dec-11
Jun-12
Dec-12
0%
Philam Life Global Bond Fund
PAMI Philam Bond Fund
Fund Inception Date: August 1, 2012
The Philam Life Global Bond Fund (PALGBF) is a USD-denominated investment fund
created specifically for dollar variable life insurance contracts issued by The Philippine
American Life and General Insurance Company (Philam Life). The Philam Life Global Bond
Fund is an investment option for the dollar variable life policyholder with a preference
for investing in high-quality, investment-grade fixed-income securities with low to
moderate levels of risk over a medium- to long-term investment horizon. The Fund aims
to preserve capital and provide stable income growth over the medium- to long-term.
The PAMI Philam Bond Fund is a PHP-denominated single asset fund invested in Philam
Asset Management Inc.s PAMI Bond Fund (PBF). PBF is an open-end mutual fund with
a portfolio composed of government securities and high-grade commercial papers. The
investment focus of the fund is capital preservation. It is a first rate-pick for programmed
capital build-up that can be used for retirement, education, incentive programs, and
other individual or corporate financial purposes.
FUND PERFORMANCE*
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
2009 Return
2008 Return
2007 Return
2006 Return
11.70%
2.81%
6.33%
9.08%
-4.96%
3.49%
11.20%
6.88%
4.83%
55.04%


Net Asset Value (NAV in PHP)
1,593,789**
3.7202**

Issue
12,266,229**
1.5504**
4.85
7.76
2.36%
4.60%

SM Prime FRCN
Maturity
% of Portfolio
7/19/2031
2/1/2032
10/20/2021
12/16/2035
10/24/2037
4/28/2021
12/16/2020
11/24/2021
8/21/2021
9/29/2036
12.45%
12.36%
10.82%
9.77%
9.23%
6.23%
4.82%
4.81%
4.35%
4.02%

Foreign Corporate Securities
25.75%
74.25%
60%
4%
3%
2%
1%
0%
50%
40%
30%
20%
10%
Dec-12
Dec-11
Jun-12
Jan-11
Jun-11
Jul-09
Jan-10
Jul-10
Jan-09
Jul-07
Jan-08
Jul-08
Jan-07
Jul-05
Jan-06
Jul-06
0%
Dec-12
-1%
Nov-12
5%
Oct-12
% of Portfolio
4.59%
2.83%
2.80%
2.63%
2.22%
2.12%
2.02%
1.93%
1.91%
1.84%
Sep-12
Maturity
2/14/2012
5/17/2042
11/1/2025
12/29/2049
1/20/2042
4/28/2041
4/9/2021
4/11/2022
5/2/2042
1/13/2022
Aug-12
FOREIGN SECURITIES (as of Dec 31, 2012)

Issue
Reliance Hdg USA
Sinopec Grp CHN
Tenaga Nasional
Hutch Whampoa Ltd
Korea Gas Corp
CNPC
Kazmunaigaz
Export-Import Bank Korea
CNOOC Finance
Hutch Whampoa Ltd
PAMI Philam Strategic Growth Fund
PAMI Philam Fund
The PAMI Philam Strategic Growth Fund is a PHP-denominated single asset fund invested
in Philam Asset Management Inc.s PAMI Strategic Growth Fund (PSGF). It is a long-term
investment that gives superior capital growth through a professionally managed stock
portfolio. PSGF is an equity fund invested in listed or soon to be listed issues in the
Philippine Stock Exchange. It is the ideal fund for people who are after capital growth
but do not have the expertise or the resources to develop and manage a highly diversified
equity portfolio.
The PAMI Philam Fund is a PHP-denominated single asset fund invested in Philam Asset
Management Inc.s PAMI Fund (PFI). It is a balanced fund that provides its shareholders
access to the stock market while tempering the markets volatility with a steady stream
of interest income. The funds portfolio is a healthy balance between blue chip stocks and
fixed income instruments. It is an ideal vehicle for moderate investors who want to avail
of the profit opportunities of the stock market but are not totally comfortable with the
risks involved in equity investments.
FUND PERFORMANCE*
FUND PERFORMANCE*
3.68%
1.44%

24,836,216**
501.6100**

3,045,559**
16.2122**
COMMON STOCKS

COMMON STOCKS
(as of Dec 31, 2012)
Issue
% of Portfolio

BDO Unibank Inc
Puregold Price Club Inc
Robinsons Land Co
7.05%
5.49%
4.60%
4.43%
3.96%
3.82%
3.79%
3.76%
3.63%
3.43%
(as of Dec 31, 2012)
Issue
% of Portfolio

Puregold Price Club Inc
BDO Unibank Inc
Nihao Mineral Resources
8.85%
6.73%
6.26%
5.75%
4.83%
4.82%
4.76%
4.59%
4.30%
4.16%

Issue
Dec-12
Nov-12
Sep-12
Aug-12
-4%
Maturity
% of Portfolio
10/24/2037
9/4/2016
1/4/2018
12/16/2020
2/18/2020
3/31/2017
8/19/2017
2/15/2018
1/27/2016
3.13%
1.14%
0.98%
0.95%
0.94%
0.87%
0.87%
0.59%
0.43%

4%
2%
0%
-2%
-4%
Dec-12
-2%
Sep-12
0%

SM Inv FRCN
Ayala Corp FRCN
Aug-12
2%
Nov-12
4%
Philam Life High-Water Mark Fund 2019

(or Prime Yield)
Philam Life Principal-Protected Fund

(or AIG Winning Edge Tr. 1)
Fund Inception Date: May 13, 2009
Fund Inception Date: June 3, 2008
The Philam Life High-Water Mark (HWM) Fund 2019 is a USD-denominated single-asset
fund that locks in the highest NAVPU of the fund at maturity. The fund is invested in a
10-year structured note issued by Barclays Bank PLC, which is exposed to various asset
classes and markets, such as global and emerging market equities and bonds. On a daily
basis, the note allocates its exposure between risky and risk-free assets to maximize
returns while ensuring that the highest NAVPU is protected at maturity.
The Philam Life Principal-Protected Fund is a USD-denominated single-asset fund

invested in an index-linked structured note issued by HSBC Bank PLC. The structured note
provides 100% principal protection at maturity and a participation in the performance
of Standard and Poors (S&P) 500 and S&P BRIC (Brazil Russia India China) 40 indices.
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
5.06%
2.59%
1.96%
3.19%
27.33%
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
2009 Return
-1.28%
3.95%
5.47%
-3.34%
2.67%
2.65%

Remaining Life (in years)
9,561,683**
1.2733**
6.37

8,732,237**
1.0265**
3.42
* NAV is net of 2.5% administrative charge

* NAV is net of 2.2% fund management charge

15%
Peak Return at 28.17% on 12/07/2012
30%
5%
25%
20%
-5%
15%
10%
Dec-12
Jun-12
Dec-11
Jun-11
Dec-10
Jun-10
Dec-09
Jun-09
Dec-08
Dec-12
Aug-12
Apr-12
Nov-11
Jul-11
Mar-11
Nov-10
Jun-10
Feb-10
Oct-09
May-09
0%
Jun-08
-15%
5%
Philam Life Principal-Protected Fund 2

(or AIG Winning Edge Tr. 2)
Philam Life Principal-Protected Emerging

Markets Fund (or AIG Winning Edge Tr. 3)
Fund Inception Date: September 17, 2008
The Philam Life Principal-Protected Fund is a USD-denominated single-asset fund

invested in an index-linked structured note issued by HSBC Bank PLC. The structured note
provides 100% principal protection at maturity and a participation in the performance
of Standard and Poors (S&P) 500 and S&P BRIC (Brazil Russia India China) 40 indices.
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
2009 Return
-0.84%
2.89%
5.67%
-1.64%
2.54%
4.16%

4,617,585**
1.0416**
3.54

The Philam Life Principa l- Protected Emerging Markets Fund is a USD - denominated
single-asset fund invested in an index-linked structured note issued by Allegro
Investment Corp SA. Allegro Investment Corp SA is a special purpose limited liability
company, whose notes are guaranteed by Citigroup Inc. The structured note provides
100% principal protection at maturity and a participation in the performance of Standard
and Poors BRIC (Brazil Russia India China) 40 and MSCI Emerging Market ExchangeTraded Fund (EEM ETF).
FUND PERFORMANCE*
2012 Return
2011 Return
2010 Return
2009 Return
5.53%
-3.33%
7.59%
7.65%
3.15%
2.99%

6,025,945**
1.0299**
0.71

15%

5%
10%
-5%
0%
Jul-12
Dec-12
Feb-12
Aug-11
Oct-10
Mar-11
May-10
Nov-09
Jan-09
Jun-09
Jul-08
-15%
-10%
Jul-12
Dec-12
Oct-11
Mar-12
Jan-11
Jun-11
Aug-10
Apr-10
Jul-09
Nov-09
Feb-09
Sep-08
-20%
Philam Life Asias Best Fund 1
Philam Life Asias Best Fund 2
Fund Inception Date: December 2, 2011
The Philam Life Asias Best Fund is a USD-denominated single-asset fund invested in a
structured note issued by Citigroup Funding Inc. The structured note protects at least
80% of the principal at maturity and provides a participation in the performance of the
Hang Seng China Enterprises Index (HSCEI Index) and Indias equity index (NIFTY Index).
The Philam Life Asias Best Fund is a USD-denominated single-asset fund invested in a
structured note issued by Citigroup Funding Inc. The structured note protects at least
80% of the principal at maturity and provides a participation in the performance of the
Hang Seng China Enterprises Index (HSCEI Index) and Indias equity index (NIFTY Index).
FUND PERFORMANCE*
FUND PERFORMANCE*
2012 Return
15.17%
-6.17%
2012 Return
13.38%
5.08%

3,954,935**
0.9383**
4.53

4,066,596**
1.0508**
4.92


0%
15%
5%
-10%
-5%
Dec-12
Oct-12
Nov-12
Sep-12
Jul-12
Aug-12
Jun-12
Apr-12
May-12
Mar-12
Feb-12
Dec-11
Dec-12
Oct-12
Sep-12
Jul-12
May-12
Apr-12
Feb-12
Dec-11
Nov-11
Jul-11
Sep-11
Jan-12
-15%
-20%
Philam Life Growth Invest Fund 1
Fund Inception Date: September 28, 2011
Fund Inception Date: January 11, 2012
The Philam Life Growth Invest Fund is a PHP-denominated single-asset fund invested in
a structured note issued by ING Bank NV. The structured note protects at least 80% of the
principal at maturity and provides a participation in the performance of four
exchange-traded funds related to commodity-related equities and Chinese equities,
namely 1.) Market Vectors Agribusiness ETF (MOO US Equity), 2.) Energy Select Sector
SPDR Fund (XLE US), 3.) iShares FTSE/Xinhua A50 China Index ETF (2823 HK Equity), and
4.) Market Vectors Gold Miners ETF (GDX US Equity).
a structured note issued by ING Bank NV. The structured note protects at least 80% of the
principal at maturity and provides a participation in the performance of four
FUND PERFORMANCE*
FUND PERFORMANCE*
2012 Return
1.92%
-11.90%
-13.64%

508,160,800**
0.8810**
4.75


214,647,780**
0.8636**
5.03

10%
0%
0%
-10%
-10%
Dec-12
Oct-12
Nov-12
Sep-12
Jul-12
Aug-12
Jun-12
Apr-12
May-12
Mar-12
Feb-12
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jan-12
-20%
-20%

a structured note issued by ING Bank NV. The structured note protects at least 80% of
the principal at maturity and provides a participation in the performance of four
FUND PERFORMANCE*
-9.50%

54,797,750**
0.9050**
5.53


5%
-5%
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
-15%
DISCLOSURE STATEMENT
Readership: This document is intended solely for the addressee(s). Its
content may be legally privileged and/or confidential. This materials is
only valid if distributed in the Philippines
Opinions: Any opinion expressed in this document may be subject to
change without notice. We are not soliciting or recommending any
action based on this material
Risk Warning: Past performance is not indicative of future results. Our
investment management services relate to a variety of investments,
each of which can fluctuate in value. The value of portfolios we manage
may fall as well as rise, and the investor may not get back the full amount
originally invested. The investment risks vary between different types
of instruments. For example, for investments involving exposure to a
currency other than that in which the portfolio is denominated, changes
in the rate of exchange may cause the value of investments, and
consequently the value of the portfolio, to go up or down. In the case of
a higher volatility portfolio the loss on realization or cancellation may
be very high (including total loss of investment), as the value of such an
investment may fall suddenly and substantially.
In making an investment decision, prospective investors must rely on
their own examination of the merits and risks involved.
Unless otherwise noted, all information contained herein is sourced
from Philam Life internal data.
The content included herein has been shared with various in-house
departments within the member companies of Philam Life, in the
ordinary course of completion. All Philam Life member companies
comply with the confidentiality requirements of their respective
jurisdictions. Parts of this presentation may be based on information
received from sources we consider reliable

AIA 2012 Philam Life VUL Report PH

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May 2013

Dear Valued Policyholder,

Philam Life Variable Funds

GENERAL MARKET REVIEW

In line with efforts to create an inter-ASEAN trading platform, the

Moving to 2013, we expect risk appetite to improve as global

Europe was on everyones mind as we entered the year as Greece, after

STATEMENT OF ASSETS AND LIABILITIES

Net Asset Value (NAV)

PAMI Philam Strategic

PAMI Philam Fund

Net Asset Value (NAV)

Growth Invest Tr. 1

Growth Invest Tr. 2

Net Asset Value (NAV)

*Fair Value Through Profit or Loss

Growth Invest Tr. 3

Philam Life Dollar Variable Funds in USD

Net Asset Value (NAV)

Winning Edge Tr. 1

Winning Edge Tr. 2

Winning Edge Tr. 3

Net Asset Value (NAV)

Asias Best Tr. 1

Asias Best Tr. 2

Net Asset Value (NAV)

*Fair Value Through Profit or Loss

Philam Life Equity Fund

Philam Life Fixed Income Fund

Fund Inception Date: November 10, 2004

PORTFOLIO STATISTICS (as of Dec 31, 2012)

PORTFOLIO STATISTICS (as of Dec 31, 2012)

PORTFOLIO MIX* (as of Dec 31, 2012)

* Excluding accrued income

COMMON STOCKS (as of Dec 31, 2012)

PORTFOLIO MIX* (as of Dec 31, 2012)

* Excluding accrued income

FIXED INCOME SECURITIES (as of Dec 31, 2012)

FRCN - Fixed Rate Corporate Note

RETURN SINCE INCEPTION*

COMMON STOCKS by SECTOR (as of Dec 31, 2012)

RETURN SINCE INCEPTION*

Philam Life Balanced Fund

Philam Life Dollar Bond Fund

Fund Inception Date: May 22, 2007

Fund Inception Date: July 12, 2005

PORTFOLIO STATISTICS (as of Dec 31, 2012)

PORTFOLIO MIX* (as of Dec 31, 2012)

PORTFOLIO STATISTICS (as of Dec 31, 2012)

* Excluding accrued income

COMMON STOCKS (as of Dec 31, 2012)

FIXED INCOME SECURITIES (as of Dec 31, 2012)

PORTFOLIO MIX* (as of Dec 31, 2012)

* Excluding accrued income

PHILIPPINE SOVEREIGN SECURITIES (as of Dec 31, 2012)

RETURN SINCE INCEPTION*

FRCN - Fixed Rate Corporate Note

RETURN SINCE INCEPTION*

Philam Life Global Bond Fund

PAMI Philam Bond Fund

Fund Inception Date: July 12, 2005

Fund Inception Date: August 1, 2012