investment funds introduction
DESCRIPTION
Investment Funds Introduction. What are these Investments?. They are known as the “Trust Products ”. Unit Investment Trust Fund ((UITF). Mutual Fund (MF). Basic Differences. UITF. Mutual Fund. Open-end investment company SEC – regulated Shares are issued - PowerPoint PPT PresentationTRANSCRIPT
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
https://www.bpiassetmanagement.com/pages/products-services-directory/https://www.bpiassetmanagement.com/pages/investment-funds-monitor/
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/