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    AIA Ph 2010 VUL Fund Performance Report

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    AIA Report

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    32 views10 pages

    AIA PH 2010 VUL Fund Performance Report

    Uploaded by

    SheilaAlcaparazDelaCruz
    AIA Report

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
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    a peter Saereoe renter tenant ceed eae aren Pai eater ember ad fe teen eee Ln Pe ete rr parr a re tt ren pe tert ey Cenedter ed eae cere teers ieee are titer at ic a omnia cee a eel a ye ay Scere Tene reac reaeeeay Pera hermt ether es Perea any erected i ae eee Fare ear nr ly ie i abo rea an ne einer oe neery etd pore rl Seen te ae eee eared Pelee i rat econ en tea porate eran en eer te) poser Teron eee tN See Noet teeter tartan aed Pacer ere hae Petree eet ae ees ees Pec eer herta Troueh brie serene wt ror teat mieretinnec) Sei neeeeieee et eae ete tere) fa ee ete ea ceed eect ea Tire ce ery la UE M AC) ste) ag Full Year 2010 “The year 2010 was maried by stong economic growth ard a postive iwestnent enviorneat. The Phitpoives had ts hignes: GOP growth in 34 years at 7.3% bocsted by aggressive elecion spending in G1, postive ‘aiket sertiment coming fem peacalu presenta eee: ions it May, anda bullsh stock maket in the second Semester that broke the 4.000-peint barr ‘orth fst ime in histery ast September, eakng at 4,413.42 points in November: ‘Witia this macroeconamic envionment. we are pleased toinferm you of he sting pecormance of Phar e's Varible Universal Lite (VL) turds st 2010. As of Decamber31, 2010, the yoarte ata (YTD) tine stocd at 41046% for Pham Life Fixed income Fund (PHP), 49.15% for Phiam Life Equity Fund PHP), 41.90% for Pham Life Balanced Fund (PHP), 936% fer Phan Le Dollar Bond Fur (USD), 2nd 8394 or Philam Life Gleb Bond Fund (USD). These results. as wel as those for 2008, ae shown Inthe alates VUL FundPeronnarce Repo. ‘The year 2010 was also a 900d year for Phim Life as we posted growth in almost all aspects of our business. Total Premium Income reached P35 billon. 2 9% increase fram previous year while New Business Sales was at P2.49 blion, a robust 72% increase versus lastyear Meanwhile, Total Assets increased by 12.8% 0 165.87 billion Wile Investment Income Brew by 4% to 41.38 bition, ‘We aso lake pride in being pat ofthe AIA Group, the laygestindeperdent pubiyIsted pan-Asian fe insurance Group in the wold wth abroad footrit epanning 45 ‘aikets in Asa Paci. The AIA Grow posted US$ 27 billon in net profit, jumping by 64% yearn year ines of International Financhg Repoting Standards (IFRS) accnding to the Group's 2010 audlad conssidatod financial results ending November 30 ast year. “Through an extensive network of move than 260000, ‘agents andover 21 000 employees across Asia Pcie. AA Serves the holders of aver 23 millon inddual policies and ‘ver 10 millon patpating members of group polices. ‘We value your rust ard uoheld cur commitment to serving your needs wih mest dedizaton, Should you outa adaitonal formation please do ot esate to cal us at (+632) 528-2000 or ema us at phiamife@aizcom. You may also visit our websile at Phiamifecom or go to any Pham Life branch oftce atone or assetance, Yours Philam Life Variable Funds MARKET REVIEW LOGAL FIXED INCOME AND EQUITY MARKETS Economic recovery was the Asian theme for 2010 as the region ‘exhibited spectacular growh, proving its reslence from the risks {hal sti abound inthe Western world, A boos in export demand and investments supported Asia's outperformance. Locally, re Philppine ‘economy was able to ride Asi's momentum by recisterng a stelar 7.40% year on year [YOY) real GOP growth, the hignes in 24 years This was mainly supported y election spending, robust OFW remittances and a rebound in exports fr elecronic compenets Phiippne debt together with other equity market (EM) issues initlly struggled over concerns.on dett-troubied European eccnomies such ‘a8 Porlugal, lend, Greace and Spain. Fortunately, favorable ‘undamenials supperted asset pnces, aided by renewed investor Confidence brought abeut by a auccssstul change in goverament ‘The new admnisiration’s commitment to batte corruption and boost ‘ax collction efficiencies, sustained revenues and subdued Spending resulted to lower fiscal risks forthe rest of the year, This led to the government's ouperformance of is tudget delat, which stood at PHP 914.4 billon on yearend vereue the PHP 20 billion farget. A positive. economic tackdroo amid =. low inflation ‘environment made the Philppnes worthy of a ore vagrade from 5B. to BB by Standard & Poor's Ratings Services. Local patie sks ard the European fscalcriss were the predominant Contibuos tc the viatitis in the Piipine peso and dolar bond makes forthe fst haf of the year, Peso debt yields peaked asthe May ‘atonal elections proached. Te T-year peso bond reached 7.7138% inlet Apelwhlo tho 10 oor reached & 304294 n early May. Neanwho, doubtson fhe fasbilly of Greece's austen program heightened global ‘iskaversion in Mey, The 7-year ROP bondrose to 406% in eary May ‘while the 10-year ROP rose tb 5.860%, The relatively peaceful eleciens ‘and sustaned posiive local and regional undamenals renened Investor confidenco in Philne debt during the second haf tha year. Takng advantage ofthe peso appreciation, forean investor demand made the debut of the 10-year Global Peso Notes in October a highly ‘Successful one. Fish bqucity also supported the rly in tons markets The governments bond exctange progam to bnathen peso and dolar ett ako atvacted local ant foreign ‘vector inirost, sending bond Yel tothe year’s lowest loves, The 7-year ROP ht alow of2.913% in {arly November wile the 10-yeer ROP it alow of 3.597%, Neanwhle, {helocal bond yield curve stespenedin November as he BSP corroed the rapid eppracition ofthe local curency by aot olin over We enap matures. This caused shortterm interest rates to fall sharply The “T.year peso bond fel to §.0692% inthe same month whi the 10-year bord fel to 5,7327%, In Decenbey, the governments move to create quel ne ong endo the curve by voducing a 25-year peso bond ‘borehmart wie woleemed by diferent imvostr peas On the cent, ROP bonds succumbed f bouts of isk aversion onthe back of raving _g60-poitical concerns in Korea and sigs of an improving US economy. ‘A low inflation environment bolstered the econemy’s growth in 2010. The consumer prica index saltlad at 3.8% YoY in 2010. at he ‘ow end of the government's 3.5% to 55% target range. Despite ‘expectations of a negative ‘arm output giowhn brought about bythe EI Nino phenomenon, righer ice ane corn production in he last ‘quarter ofthe year tempered pice increase pressures. The benign ilaion cupported te BSP ascommodaive monetary poi that kept overnight borrowing and lending rates ata record lw of 4% ‘and 6%, respectvely,troughout the year ‘The sustained growth by OFW remittances continued © provide ‘tong supper te domestic demand. wih the remitance level or he yar accountng for close to 10% ofthe county's GDP. Cumulative femitlance flows of USD 18. bition were recorded, posing a ‘Stonger-nar-expecied 8.2% YoY glow. Tis corinbsted 10 a ‘record high Gross International Resarves levelof USD.62.1 bilionat the end of 2010, rising 40.5% YoY. Meanwhile, domestic: Iquicy grew an average 97% YoY, indicating that monetary conditions ‘emahed consisient wi the stonger underlying momenum of fe ‘economy, “The Philipine equity market surged in20%0 and recorded a 37.6% «gin to cose the year at 4201.14, The market actually posted & New all-4me record high of 4,387.30 in November, beating the provicus record set in October 2007, as investors turned mere Positive en amarging markets, partculalyin Asia ard shied away from more davetoped markets, Posie economic and corporate developments on the local front, ed by strong GOP growth humbers and OFW remittances, anc benign lation rate, aso ‘helped boost the market. Thus, average tading volume increased to USD $5 milion in 2010, rom USD 70 milion in 2009, The year \was also cappec by the market detut of CebuPaatic, the county's leading low cost carer andthe largesiPrilppine IPO to dats, ‘and Nickel Asia, the countrys largest nickel producer. “The marhet was generaly lackister inthe fist quarter cf the year \vih investors turning cautious onthe back of fears of = faiure in ‘the national slestions and debi concerns on the PIIGS (Portugal Irland, lly, Greece and Spain) markets. As slechon-related fears proved to be unfounded with the success of tho countrys fest ‘automated dectons in May, combined with the strong corporate ‘earings growth momentum, market sentiment started to turn postive lowards the enc of ne ist half ofthe year. By September, the average tracing volumes have roan 75% to USD 158 rillon, ‘rom USD 78:milion in he ist haf of 2010, wth vet foreign buyng being recorded at USD 362 milion, and total foreign transactions ‘accounting fer 40% of ctl volumes. Moreover, with fe significant increase in domeste liquid, local corporates also aggressively {appee bath he debs and aqulty marke to fnancs thai expancion plans. GLOBAL FIXED INCOME MARKET ‘The year 2010 saw a marked improvernentin investor isk appetite ~ equities and High-Yield (HY) credits outperformed US Teasuries (USTs) and High Grade (HG) bonds. The ulra low rate fevronmantin the 63 (US, Japan and European Urion), coupled by strong economic ecovely inthe emerging marks (EMS) have provided a favorable backdrop for investors In search of yield Ilion was benign and menetary paicy remained generaly ‘accommedatve, at bas! during the early partof the year, By the second half of 2010, the US esonomic outlok trightenad Cf the back of sustaned corporate warnings and amedest evound in the jote market, providing further impetus for more risk-taking ‘The US Federal Reserve's decision to extend (and expand) its Quantitative Easing Swategy (QE2) augured well for credits ‘8 benchmark rates fal to alltime tows and new sues flood the ‘market. But eftorreachng rocord lows in October 2010, UST yilde rose steadily in 4th quarter of 2010 due to soversign default Concerns in peripheral Europe and inflation risk in the EM. Stl, USTs managed to pos! positive ratum of §.8% for al of 2010. The ‘AO-year UST dropped Stops YoY to end the year al 3.294%, However, there were also a rumber of fuss that rated markets last year foremost of which was the sovereign debt crisis in Peripheral Euroge paricuary in the so-called PIGS. the crisis Dromsteda ceres of negative credit rating action in PIGS, ineuding the downgrate of Greece's sovereign rating to junk. Eventually, & massive bailout package was approved for Greece in 2nd quarter (f 2010. In response i the worsenng dett cisis, the European Financial Stbily Facity (EFSF) was created by the 27 member ‘ates of tho Europoan Urion (EU) en May 2010, whese manda 's to provide fnancal assistance fo Eurozone stale in economic diifeuty, ‘Asa, on te other hand, continued to decouple from the developed ‘worclan the back of rust emetic demand. Unlike in tha US an Europe, Asian economies have recovered fast from the otal financial criss withthe region tracking growth of atleast 8.6% 25 er Asian Developrient Bank’ (ADE) estimates. Overall rowan is being fueled by the stong parformance of East Asian acancmics, ‘email the People's Republic of Cina (PRC) ln Southeast Asia, ‘rawth in the Philippines and Thailand likewise ccoeleratec, and Indonesia's credit profle continued 'o improve leading to several posite ratings alsion by inlemaonal cred tating agencies. However, inflation risk emer godin 2nd half of 2010 prompting Asian ‘clcymaters to switch to tighter monetary potcy stance Fer 2010, the Ctl US Broad Investment-Grade (USBIG) HG Corps Index managed to past @ 9.1% gain, altheugh this pales in ‘comparison 16 the 18.4% gain posted by tha index in 2008 ard the 44.3% return posted by the Citi HY index during the year. Gains likewise varied among dfeentratng lassesdue to nvestow’ search for yield. The EBBIBB (+14.62%) and BBB (+10.18%) delivered deubledigt annual roturs, while the AVVMA and single A clans ‘ested loner roturs of 5 £98 and 8.55%. respectively In Ata, the LP Morgan Asia Credit Index (JACI) HG Corps recorded an 8.53% yearly return, aleo way delow the 19.4% gain made by the JACI HY Corps. On @ spreed basi, the USBIG HG Corps Index spread narrowed Yor by ‘4bpe by tho end of tho yoar to 140, which wae 774bps titer compared to the 22Sbps(-I2bps YoY) incex spread of the JACI HG Comps durng the same period. In. the EM spece, the JP Morgen Emerging Market Bond Index (PuBis) posted an annual retin of 11.8%, even surpassing gaine ‘made by the Dow Jones Industria Average (DUA) +11.0%) forthe year. Driven by higher yields and de-couping of Asien economic {rowtn from the US and Europe, EM Asia outperformed IS EM {counterparts wity 9 130% gain vo. EM Latam’s 17.09% and EM ©. Europe's 10 9%. In terms of soreads, EM Asian spreads igttened by almost 4009s YoY to 165, while EM Latam and E. Europe spreais narrowed by 22bs and 20bps, respectvely. EM Asian ‘prea are now tighter by 141bpS Vs EM Lata an 2509S vs EM E.Eueope, ‘Ater recording five consecutve months of gsins, the market “succumbed fo profttakng in November cn the back of increasing _geopalticaltensons inthe Korean peninsula and a renewal cf Euro bt concerns. However, the market posted a srong rebound in December, party on the back of increased flows following the Morgan Staniey Cazital international (MSCI) index rebalancing that, tok effect t erd-Noverber and as fhe government unveiled its USD 7 bilion PubicPrivate Perinership (PPP) program that aims. topremoie investments in key infrastructure pojests. FUND MANAGERS Phitam Lfas varabl lif funds are managed by Pilam Life's tesm ‘ofinvestmer professionals who have ove 20 years of experience ‘and expertso inthe field of fund management. As af December 37, 2010, toa assets por Phila Life audited franca statement ‘reachod over PHP “55 aii, Pham Life combnos its expertise with the strenath ofits senior management to manage potfolos ‘effectvely in order to achieve favorable returns. Phetridge Investments Asia Linited-Phiippine Branch ("The Philippine Branch’) acts as an Investment Adviser tr the equity parte, The Philppine Branch is @ memter company of Phetridge Investments. Photridge Investrents is a group af Intemational companis ‘acquited by Pacific Century Grou fom American International ‘Group, Inc. in March 2010. PieBridge companies provide investment edvice and market asset management products end Services 10 Glens around the world. PmneBridge Investments Is & ‘ervico mark propretary t9 PineBridge Investirants IP Haldng ‘Company Limited. Servces and products are provided by one or ‘more affiates of PineSrigge Investments. Certain middle and beck office functions ncidenial fo the sewices and products povided by PineBidge Investments and Is afflates may be ‘utsoureed to tied partes, PUT Ut RDU STATEMENT OF ASSETS AND LIABILITIES (as of December 31, 2010) Philam Life Peso Variable Funds inPHE Philam Life Philam Life Philam Life Fixed Income Fund Equity Fund Balanced Fund ASSETS: ‘Cath and cash aquvalente 4101 0¢0,000 434,285,078 11,600,000 Finarcial assets at FVTPL" ‘ST.767 844 2.747 948.726 1504990 610 ‘Loans ard recewaties, 268,985,555 - 169244 404 ‘Acctued ncame 16,846,919 1,636,096 5.148.723, Other Assets aot - 29,492,005 19,510,754 Tae S736 3.219.992.3065 117,989,591 LIABILITIES ‘Aocounts payable ond accrued expense 2,042,130 2s.022620 1,410,995 Other iat nat 9.971.408 11 163.608 252228 Thai0 386 [Not Asset Value (NAV) 11189,886,604 3.199,10797 1,805,083,196 Philam Life Dollar Variable Funds In s0_ Philam Life Philam Life Principal-Protected Dollar Bond Fund Global Bond Fund Fund t ASSETS: ‘Cash end cash equivalents 4,552,608 soaose Financal assets at FVTPL 41,052,619 8.680245 10,173,553 ‘Loans and receivables 3 : ‘Acerued income 640,004 131600 Other Assets net 63,706 19.452 EAT 084. 8750.35 TOI7o 58S LIABILITIES ‘Accounts payable ard eccruedexpense 81,452 17760 Other Liaaves -net 199 s e647 7.808 Not Asset Value (NAV) 6.115.417 9.732598 10,179,553 Principal-Protected Principal-Protected High-Water Mark Fund 2 Emerging Markets Fund Fund 2019 ASSETS: Financial assets at FVTPL* 5.488.335 6.816.556 4752370 5.488, 385 6.816.356 ‘4752,310 [Net Asset Value (NAV) 5,488,385 6,816,956 4,792,310 Philam Life Fixed Income Fund Rete LS AT FUND PERFORMANCE FUND PERFORMANCE ‘Ge Yor Rel (a of Doe 37 Toa ‘Ge Yor Reto (a of ee 3, 2070, ‘ne Yor Fetus ofc 312009) 7459 ‘ne Year Return fas of Bec 3, 2003) (One Year Ret (as of Dac 32008) aa (he Yor Retur (asf Dee 3, 2008) ‘ns Yaar atin (8 of Dae 31 2007) rr ne Ver Retin (a of Dae 31,2007, ‘ne Year Retun (as of Dec 3, 2006) 7385 (ne Year Return (as of Dac 31, 2006) FRotumsines insopion(as of Doe St,2010|__ 61585, Refuse inept es of Dec 31, 2010) eenomecen mi sieowes sna comwmse ‘oP enemannn ech non PORTFOLIO STATISTICS ison 1,91) PORTFOUOSTATISTCS watt [Net eet Value (NAY in HP Tocueande) TATE 7° ‘Weighted Duraion {in years) 8m as dada nc WihtedTonoiMftuty (yeas) on vega age 7 err PORTFOLIO MIX’ sca a “avis ta rnzemchn oncom Set A baat Ean Boe Seusaieamvenet Sammon Stes e688 porereotio sizes COMMON STOCKS - Top 20)4.s0035 259 Seer oe _SOMON STOCKS Top BBncoeniny Government Securtios: 65.35% — em Somaee pd eae Ea oe Searore a one i rv ete ses pereeeamueey Dime ne Be ee a warn ieee aia sate = sone nae it men ey eae ee ae ae a fet Ses i 2 cates on se oer | OS mp ree te eee, 2E ‘Ayala Corp FRON ‘215/2018 5.75% the Pritopine lalands 1h. SieeeeneN tacos See Noses acaton 20% Php ‘ozoznas on ee beara = cenceamenn aaraaons Se Nitto erton ee ene Hie ed Snencnete a a ae oar ey es Phil EXTN 2120/2023 423% —_—_ ae cp eur germ it COMMON STOCKS BY SECTOR woos. ann ne = cee ae me oes mais nae oa eRe Esa oer an er aan Mn ee oe aa ae nee Mining &O ee TTieiian eae ee PITH ini aC Philam Life Dollar Bond FUND PERFORMANCE FUND PERFORMANCE ‘Goo Yar Fetun(a of Doe 37 2070) aa ‘Gne Yor Return f Doe 3, 2010) 58% (One Yar Retum (a of Dae 31,2009) 34075, (ne Year Return (as of ac 31, 2000) 16206 (One Year Retum (as of Dec 31,2008) 30395 (One Year Retum(a of Dec 31,2008) “ase RotwnsingsInsopion(ansfDoeSt. 2010) 33888 ‘ne Yor Return fo of Boo 9, 2007, prs ag mar en tn ap ne Yor Return (aso Doe 1, 2006) m1a3% Fetpaomtittaran cha oes Roum snes Inept (es ofDoe 31,2010) 71358 PORTFOLIO STATISTICS tcc. 20) ecient ntetent ep etaavet ali (NA PHP euneney”_R.GTE aaa pormrouowi asa rornrouo santas ee ee [Net Asset Value (NAY in USD thousands) ‘sao Sige es 28 Seeeor i Somme ees SEES. Weighted Average YTM 425% eee Caan Hocearna crm easumonems SMinvestmonts Corpomiien ——~SOS*~*~*~*~*~S*S~SC como a ‘ fs Gataseie ie itv cena rates a re ae Se ase ia Seema = ieee eerie ae ett sopeoecee se ola a He Rreyoeccyretcareain Sth RT re = eS See ee ee een ae ROP er7a018 28.39% fee ais a = Mer ae patel = ee ‘Manila Electric Company 101% eS ee oe ncaee Be teas on = Se ae aa ROP ¥16/2025 0% FIXED INCOME SECURITIES 0s. 270) RETURN SINCE INSEPTION [RETURNSINCEINGEPTON PEPREELLEL} GGa HMMA

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