Best Balanced Fund
TRUST GROUP FUND PERFORMANCE REPORT - MARCH 2014
Fund Description
Description
Investment Profile
Client Suitability
For investors with a balanced risk profile with medium to
long term horizons who seek potentially higher returns
through investments in stocks and bonds.
Prior to investment in the Fund, the investor shall
undergo a client suitability assessment procedure to
determine whether the Fund is appropriate for him/her
considering his/her investment objective, risk tolerance,
preferences and experience.
Product Features
Balanced Fund
December 8, 2010
Php 38.998Million
115.4637
Php10,000.00
Php10,000.00
Ninety (90) calendar days
0.25% p.a. of Redemption Value
1.50% p.a.
Marked-to-Market
Sycip Gorres Velayo & Co. (SGV & Co.)
Deutsche Bank
11:00 AM
Three (3) banking days from redemption date (T+3)
Market Update
The Bangko Sentral ng Pilipinas (BSP) during its Monetary Policy Board March
27 meeting decided to increase banks’ reserve requirements by one percentage
point.
The monetary policy tool used by the BSP was precise in saying that inflation
pose no immediate concern as the future inflation path is likely to stay within
the target ranges of 4±1 percent for 2014 and 3±1 percent for 2015. For the
month of March, Consumer Price Index rose at just 3.9%, lower than January’s
4.2% and February’s 4.1%, bringing the year to date inflation at 4%. However,
decision to raise the reserve requirement was intended to guard against
potential risks to financial stability that could arise from continued strong
liquidity growth and rapid credit expansion. By raising reserve requirements,
effectively siphons Php60bio of banks’ deposit liquidity into BSP, putting
additional safeguard for the banking industry and at the same time Php60bio
less money for credit expansion.
Not to say that BSP is concerned about banks’ financial stability, as Moody’s
Investors Service in their report cites strength of Philippine banking industry,
with Philippine banks expected to remain well-capitalized until end-2015 even
amid strong credit growth. This holds as the BSP has implemented the new
Basel 3 capital requirements with full effect from January 1, 2014, in contrast to
the gradual phase-in approach adopted by most other countries.
BSP-SDA
27%
125
120
Investments will be in selected shares of stock
(minimum of 40% and maximum of 60% of investment
volume) and fixed income securities (RTBs/TD/SDA/
Bonds/Notes) with an average portfolio duration of more
than one year.
Fund Type
Inception Date
Net Asset Value (NAV)
NAVPU
Minimum Investment
Minimum Additional
Minimum Holding Period
Early Redemption Fee
Trust Fee
Valuation Methodology
External Auditor
Third Party Custodian
Dealing Cut-Off
Redemption Settlement
Portfolio Mix
NAVPU Graph
Peso denominated Unit Investment Trust Fund (UITF)
which aims to provide its participants income and capital
growth on a medium to long term basis.
Time
DepositOwn Bank
7%
115
110
105
Savings &
Interest
Accruals
1%
100
95
90
Dec-10
Jan-12
Feb-13
Mar-14
Sector Allocation
1
Fund Performance
Period
Fund
2
Benchmark
Past 1 month
0.13%
1.61%
Past 3 months
3.37%
6.16%
Year-to-Date (YTD)
3.37%
6.16%
Year-on-Year (YOY)
-6.12%
-1.48%
Since Inception
15.46%
27.73%
1
2
3
Stocks
57%
RTBs
8%
3
Rates shown are absolute.
Net of 1.50% Trust Fees. Past Performance is not indicative of future returns
Benchmark is 50% Philippine Stock Exchange Index (price only return) + 50% 3-yr Treasury
Bonds (PDST-F) rate
Plan rules are available upon request of the Trustor.
 Investors are advised to read the details of the Fund in the Declaration of Trust, which may be
obtained from the Trustee, to make their own risk assessment before making an investment.
Holding Firms
Telecommunications
In March, Philippine Bank of Communications (PBCOM) has fully paid
Php7.6bio to the Philippine Deposit and Insurance Corp. (PDIC) under its 10year Financial Assistance Agreement (FAA). The payment represents the
entire amount extended by the PDIC as financial assistance to the bank in
2004. This sets precedence to PBCOM gearing up for continued growth,
looking to open 36 more branches on top of the 10 licenses awarded last year
and the Bank’s acquisition of Rural Bank of Nagcarlan. President & CEO Nina
D. Aguas in her statement, “We aim to be purposeful in our approach to
growth, such that we are looking to drive growth that is both significant and
sustainable over time. To this end, our plans consider both organic and
inorganic sources of growth.”
20%
Property
18%
Financials
Food and Beverage
Transport
13%
6%
4%
Top 5 Equity Holdings

Investors, both local and foreign, welcomed BSP’s proactive action on
showing control of monetary conditions, with risk-on back into the
Philippine Stock Market, with the PSEi gaining 9% for the year to end at
6,429, and Philippine peso closing the month stronger at Php44.815:$1. Next
catalysts that investors expect to support the markets would come from 1st
quarter 2014 domestic corporate earnings.
There’s every reason to believe to invest in the Philippines. Invest in the
companies that help provide inclusive growth and bilaterally benefit from the
growing economy.
30%
Stocks
% to Total Assets
Philippine Long Distance & Telephone Co.
10.66%
SM Investment Corporation
7.00%
Ayala Land Inc.
6.29%
Ayala Corporation
3.69%
Universal Robina Corporation
2.72%
Any prospective investment shall be limited to the type of investments in the Declaration of Trust
for the Fund.
Disclosure:
The views expressed and attributed by the research team and analysts in this report accurately
reflect their personal opinion(s) about the investments and issuers and/or other subject matter as
appropriate. No part of the research team and analysts, collectively or individually, has
compensation or has benefit directly or indirectly related or linked to the specific
recommendations or views contained in this report.
For inquiries, please call PBCom Trust Group’s Marketing and Business Development Division at
830-7044, 830-7047, or 830-7000 local 8561, 8562, 8422 and 8497
PBCom Best Balanced Fund is a Unit Investment Trust Fund (UITF) and not a deposit account or an obligation of, or guaranteed, or insured by the Philippine Bank of Communications and therefore is not insured or governed by the Philippine Deposit Insurance
Corporation (PDIC). Due to the nature of the investment, yields or potential yields cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility of the securities held by the Fund even if invested in government securities, is for the
account of the Trustor. As such, units of participation of the Trustor in the Fund, when redeemed maybe worth more or worth less than the Trustor’s initial participation. Historical performance is for reference purposes only and is not a guarantee of future results.
The Trustee is not liable for losses except upon willful default, bad faith or gross negligence.