investment funds introduction. what are these investments? they are known as the “trust...
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![Page 1: Investment Funds Introduction. What are these Investments? They are known as the “Trust Products” Unit Investment Trust Fund ((UITF) Mutual Fund (MF)](https://reader037.vdocument.in/reader037/viewer/2022102818/56649cc15503460f94987fa8/html5/thumbnails/1.jpg)
Investment Funds Introduction
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What are these Investments?They are known as the “Trust Products”
• Unit Investment Trust Fund ((UITF)
• Mutual Fund (MF)
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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
![Page 4: Investment Funds Introduction. What are these Investments? They are known as the “Trust Products” Unit Investment Trust Fund ((UITF) Mutual Fund (MF)](https://reader037.vdocument.in/reader037/viewer/2022102818/56649cc15503460f94987fa8/html5/thumbnails/4.jpg)
Wide Array of Investments Funds
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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
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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.
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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)
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Concept of Units / Shares
![Page 9: Investment Funds Introduction. What are these Investments? They are known as the “Trust Products” Unit Investment Trust Fund ((UITF) Mutual Fund (MF)](https://reader037.vdocument.in/reader037/viewer/2022102818/56649cc15503460f94987fa8/html5/thumbnails/9.jpg)
Concept of Units / Shares
https://www.bpiassetmanagement.com/pages/products-services-directory/https://www.bpiassetmanagement.com/pages/investment-funds-monitor/
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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.
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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/