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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
The investment objective of the Philam Dollar Bond Fund, Inc. is longterm capital preservation with returns and inflows derived out of investments in fixed income instruments. The fund considers medium to long-term investment horizons for its shareholders.

Commentary
The Dow Jones Industrial Average finally broke through the 11k barrier on the back of positive developments on Greece’s deficit problem. Although Greek Finance Minister George Papaconstantinou said that Greece is not requesting for a bailout, he welcomed the rescue package being offered by 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 package, another EUR 15 billion would come from the International Monetary Fund. The positive news from the Eurozone, plus better than expected retail sales and earnings report from US corporations including Intel, JPMorgan and UPS, all contributed to upbeat investor sentiment, which increased demand for riskier assets, including the ROPs. During the initial rally, locals were seen profit-taking; however, as demand from offshore players seemed non-stop, locals eventually joined in the buying as well. The “buy Asia” theme of investors was further fueled when South Korea’s credit rating was upgraded by Moody’s Investor Service from A2 to A1 “prompted by Korea’s demonstration of an exceptional level of economic resilience to the global crisis, while containing the government’s budget deficit.” As a result, yields of the ROPs dropped by 15 bps on average compared to the previous week’s level.

Historical Performance
YTD 2.87% YOY 12.57% 3 Yrs. 17.98% 5 Yrs. 39.13% Since Inception 69.55%

NAVPS Graph
1.7400

1.6950

1.6500

1.6050

1.5600

1.5150

1.4700

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
Net Asset Value per Share (NAVPS) Total Fund Size (in Millions) as of 3/31/10 PDB YOY return as of 3/31/10 Benchmark YOY return as of 3/31/10 Inception Date Fund Currency Domicile Valuation Method Fund Classification Risk Profile Minimum Holding Period Redemption Notice Period Custodian Bank Transfer Agent USD 1.7116 USD 68.94 5.59% 6.88% September 13, 2001 US Dollar Philippines Marked-to-Market Bond Fund Low Six Months Three Days Citibank N.A. Deutsche Bank A.G. (Manila)

Source: Investment Company of the Philippines published NAVPS * Past Performance is not indicative of future results

Top Five Holdings
ROP 30 9.5% 02FEB30 ROP 25 10.625% DUE 16MAR25 ROP 14 8.25% DUE 15JAN14 ROP 15 8.875% DUE 17MAR15 ROP 19N 8.375% DUE 17JUN19 13.03% 10.50% 9.05% 8.92% 7.94%

Readership: This document is intended solely for the addressee(s). Its content may be legally privileged and/or confidential. Opinions: Any opinions 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.