investment funds introduction

Investment Funds Introduction

What are these Investments?They are known as the “Trust Products”

• Unit Investment Trust Fund ((UITF)

• Mutual Fund (MF)

Basic DifferencesUITF

• Open-end pooled fund

• BSP-regulated• Units are issued• Investors become

participants by buying units

• Unit holders are passive participants

Mutual Fund

• Open-end investment company

• SEC – regulated• Shares are issued• Investors become

shareholders by buying shares

• Shareholders are owners of the company, and have voting rights

Wide Array of Investments Funds

Wide Array of Investments Funds

32 fundsPhP 152Bn in fund volume*

BPI ‘Classic’

Investment Funds

8 funds

13 funds

BPI Index Tracker

4 funds

ALFM Funds**

5 funds

* As of Dec 2012:UITFs – PhP83Bn

MFs – PhP69Bn

** 2 addt’l – BPSF & Ekklesia

How do UITFs / MFs work?INVESTMENT MANAGER

…and invested in a portfolio

STOCKSBONDSCASH

Investors

Money is pooled…

Php

UNITS OF PARTICIPATION OR SHARES

An investor invests in a pool of funds managed by an Investment Manager. Then the Investment Manager invests in a portfolio consisting of stocks, bonds, etc. depending on the investment objective of the fund.

Concept of Units / Shares• Investors buy units/shares in a Fund at the particular

day’s Net Asset Value Per Unit (NAVPU) / Net Asset Value Per Share (NAVPS)

Concept of Units / Shares

Concept of Units / Shares

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Basic Investment MathBPI Short

Term FundNAVPU date NAVPU

(Investment / NAVPU)

Units held

(NAVPU x Shares held)

Current Market Value

(136.07 x 73.49)

Initial Cost

Unrealized Gain/ (Loss)

07/15/13 136.07 73.49 P 9,999.78 P 9,999.78 0

08/15/13 136.20 73.49 P 10,009.34 P 9,999.78 P 9.56

Minimum Initial Investment : Php 10,000.00

ALFM Money Market FundNAVPS date NAVPS

(Investment / NAVPS)

Shares held

(NAVPS x Shares held)

Current Market Value

(111.34 x 89)

Initial Cost

Unrealized Gain/ (Loss)

07/15/13 111.34 89 P 9,909.26 P 9,909.26 0

08/15/13 111.52 89 P 9,925.28 P 9,909.26 P 16.02

Basic Investment MathBPI short term fund

NAVPU dateNAVPU

(Investment / NAVPU)

Units held

(NAVPU x Units held)

Current Market Value

(136.07 x 73.49)

Initial Cost

Unrealized Gain/ (Loss)

07/15/13 136.07 7,349.1585 P 1,000,000 P 1,000,000 0

08/15/13 136.20 7,349.1585 P 1,000,955.4 P 1,000,000 P 955.4

Initial Investment : Php 1,000,000.00

ALFM Money Market FundNAVPS date

NAVPS(Investment /

NAVPS)

Shares held

(NAVPS x Shares held) Current Market Value

(111.34 x 89)

Initial CostUnrealized

Gain/ (Loss)

07/15/13 111.34 8,981 P 999,994.54 P 999,994.54 0

08/15/13 111.52 8,981 P 1,001561.1 P 999,994.54 P 1,566.56

Knowing the Market

• Money Market• Cash, Special deposit account, time deposit

• Fixed Income Market• Government and corporate bonds

For money market and fixed income investments, the Fund earns periodic payments until maturity.

• Balanced• Combination of fixed income securities and stocks

• Equities Market• Stocks

For equity investments, the Fund’s NAVPU appreciation/ depreciation is dependent on the performance of its underlying stock/ equity holdings.

Market Classification

Presenting Historical Returns

• It went through volatility during the past years and still able to prove consistency in giving positive returns. • We are in a defensive stance in limiting the negative fluctuations.

ALFM Money Market Fund BPI Short Term Fund

Benefits of Investing in BPI FundsProfessional Management

cash bonds

• Team• Full time• Shops for the

best value• Experience

• Team• Full time• Shops for the

best value• Experience

Money Market

Affordable : Minimum Initial Investment is P10,000 / $500

Affordable : Minimum Initial Investment is P10,000 / $500

LiquidityLiquidity

Diversification• Not only in one

type of investment

Diversification• Not only in one

type of investment

Bette

r Acc

ess

to M

arke

ts

Equities

FixedIncome

stocks

Higher Income Potentialv

Higher Income Potentialv Transparent

Reporting

Transparent Reporting

Access Online• view, monitor

subscribe & redeem on your account

Access Online• view, monitor

subscribe & redeem on your account

Basic Product Differences

• Depositor essentially loans to the bank

• Covered by PDIC• Bank-guaranteed

with fixed rate

• Bank is the legal owner or agent

• Not covered by PDIC• Higher yield potential

with no guarantee

Traditional Deposits vs. Trust Products

Investing• Knowing the market

• Where to invest

• Knowing your risk profile• Assess your tolerance for risk

• Setting a financial objective• Focus on how to achieve the investment objective

• Determining your liquidity requirement• Plan the portion you should invest for short-term,

medium-term & long- term horizon

Saving is NOT InvestingSaving

• Park• Set aside• Safekeeping

Investing• Making your money

work for you• Potential build-up on

your money• Using money to buy

assets that can give greater returns

Saving

Inflation

Investing

Investing can beat Inflation

Investing is making your money grow beating inflation; that is consumer goods and services today will not anymore have the same value in the future.

Advantages in Investing• Investing is taking into consideration the time value of money. • Being able to protect the principal amount with its real value

that can also give you relatively stable return and potential growth in capital and income.

• Investing is gaining more with what you already have earned; make your money work hard for you.

• Whether you are conservative or aggressive, there are funds suited for your risk tolerance and personal needs.

THANK YOU

Or contact Camille dela RosaInvestment Specialist

For Historical Performances of other Funds, click this link:

https://www.bpiassetmanagement.com/pages/products-services-directory/

For further information please visit our website:

https://www.bpiassetmanagement.com/