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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 Differences. UITF. Mutual Fund. Open-end investment company SEC – regulated Shares are issued

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Investment Funds Introduction

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  1. Investment Funds Introduction

  2. What are these Investments? They are known as the “Trust Products” • Unit Investment Trust Fund ((UITF) • Mutual Fund (MF)

  3. Basic Differences UITF 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 • Open-end pooled fund • BSP-regulated • Units are issued • Investors become participants by buying units • Unit holders are passive participants

  4. Wide Array of Investments Funds

  5. BPI ‘Classic’ Investment Funds 8funds ALFM Funds** 5 funds 32 funds PhP 152Bn in fund volume* BPI Index Tracker 4 funds Wide Array of Investments Funds 13 funds * As of Dec 2012: UITFs – PhP83Bn MFs – PhP69Bn ** 2 addt’l– BPSF & Ekklesia

  6. STOCKS Php BONDS CASH How do UITFs / MFs work? Investors INVESTMENT MANAGER Money is pooled… …and invested in a portfolio 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.

  7. 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)

  8. Concept of Units / Shares

  9. Concept of Units / Shares https://www.bpiassetmanagement.com/pages/products-services-directory/ https://www.bpiassetmanagement.com/pages/investment-funds-monitor/

  10. Basic Investment Math Minimum Initial Investment : Php 10,000.00

  11. Basic Investment Math Initial Investment : Php 1,000,000.00

  12. Market Classification 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.

  13. Presenting Historical Returns BPI Short Term Fund ALFM Money Market Fund • 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.

  14. Benefits of Investing in BPI Funds Professional Management • Team • Full time • Shops for the best value • Experience Better Access to Markets Diversification • Not only in one type of investment cash bonds stocks Liquidity Money Market Fixed Income • Access Online • view, monitor subscribe & redeem on your account Higher Income Potentialv Transparent Reporting Equities Affordable : Minimum Initial Investment is P10,000 / $500

  15. Basic Product Differences Traditional Deposits vs. Trust Products • 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

  16. 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

  17. Saving is NOT Investing Saving Investing Making your money work for you Potential build-up on your money Using money to buy assets that can give greater returns • Park • Set aside • Safekeeping

  18. Investing can beat Inflation Saving Investing 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.

  19. 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.

  20. 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/ Or contact Camille dela Rosa Investment Specialist Thank You

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