Philam Asset Management, Inc.

(PAMI) administers, distributes

and provides investment advisory to seven (7) mutual funds.
PAMI gives shareholders superior yields through active
management, diversification and investment expertise only
organizations with extensive financial muscle can provide.

Philam Dollar Bond Fund, Inc. (PDBF)

April 16, 2010

Investment Objective Commentary

The investment objective of the Philam Dollar Bond Fund, Inc. is long- The Dow Jones Industrial Average finally broke through the
term capital preservation with returns and inflows derived out of 11k barrier on the back of positive developments on Greece’s
investments in fixed income instruments. The fund considers medium to deficit problem. Although Greek Finance Minister George
long-term investment horizons for its shareholders. Papaconstantinou said that Greece is not requesting for a
bailout, he welcomed the rescue package being offered by
Historical Performance the other European governments which would come in the
form of three-year loans of as much as EUR 30 billion with
interest rates below current market levels. On top of the EU
YTD YOY 3 Yrs. 5 Yrs. Since Inception
package, another EUR 15 billion would come from the
2.87% 12.57% 17.98% 39.13% 69.55% International Monetary Fund.

The positive news from the Eurozone, plus better than

NAVPS Graph expected retail sales and earnings report from US
1.7400 corporations including Intel, JPMorgan and UPS, all
contributed to upbeat investor sentiment, which increased
1.6950 demand for riskier assets, including the ROPs. During the
initial rally, locals were seen profit-taking; however, as
1.6500 demand from offshore players seemed non-stop, locals
eventually joined in the buying as well. The “buy Asia” theme
1.6050 of investors was further fueled when South Korea’s credit
rating was upgraded by Moody’s Investor Service from A2 to
1.5600 A1 “prompted by Korea’s demonstration of an exceptional
level of economic resilience to the global crisis, while
1.5150 containing the government’s budget deficit.” As a result,
yields of the ROPs dropped by 15 bps on average compared
1.4700
to the previous week’s level.
1.4250
16-Apr-09 16-Jun-09 16-Aug-09 16-Oct-09 16-Dec-09 16-Feb-10 16-Apr-10
Key Figures
Source: Investment Company of the Philippines published NAVPS Net Asset Value per Share (NAVPS) USD 1.7116
* Past Performance is not indicative of future results
Total Fund Size (in Millions) as of 3/31/10 USD 68.94
PDB YOY return as of 3/31/10 5.59%
Benchmark YOY return as of 3/31/10 6.88%
Top Five Holdings
Inception Date September 13, 2001
Fund Currency US Dollar
ROP 30 9.5% 02FEB30 13.03% Domicile Philippines
ROP 25 10.625% DUE 16MAR25 10.50% Valuation Method Marked-to-Market
Fund Classification Bond Fund
ROP 14 8.25% DUE 15JAN14 9.05%
Risk Profile Low
ROP 15 8.875% DUE 17MAR15 8.92% Minimum Holding Period Six Months
ROP 19N 8.375% DUE 17JUN19 7.94% Redemption Notice Period Three Days
Custodian Bank Citibank N.A.
Transfer Agent Deutsche Bank A.G. (Manila)

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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.