Fund Fact Sheet as of Dec 27, 2019

Address: 15th Floor PSE Tower, 5th Avenue cor. 28th Street
Bonifacio Global City, Taguig City

PhilEquity Peso Bond Fund Tel No.:

Email:
+ 632 8-250-8700
ask@philequity.net / invest@philequity.net
Website: www.philequity.net

INVESTMENT OBJECTIVES PORTFOLIO ANALYSIS

The Fund aims to provide investors with long-term capital Interest Rate Exposure Asset Allocation (%)
appreciation through investments in government securities,
commercial papers, corporate bonds, promissory notes and
other debt instruments of varying tenors. < 1 year 41%
FUND FACTS Cash
Incorporation Date 24 February 1999 1-3 years 11%
18% Corporate
Structure Open-ended mutual fund
Fund Currency Philippine Peso 3-5 years 0% 38%
Valuation method Marked-to-market
Type Bond Fund
Minimum Initial Investment PHP 1,000.00
> 5 years 30% Government
Minimum Additional Investment PHP 500.00 45%
Minimum Holding Period 90 days
Early Redemption Fee 1.00%
NAVPS as of Dec 27, 2019 3.7882
Redemption Settlement Max of 7 banking days
Fund Size (Mn PhP) 222
Annual Management fee 1.0% p.a. of total funds under
PERFORMANCE ANALYSIS
management Compounded Annual Growth
Fund Manager Philequity Management, Inc. Cumulative Returns
Rates (%)
External Auditor SGV & Co. 10 years 4.80%
YTD 1 mo 6 mos YoY 3 Yrs Since Launch
Transfer Agent Banco de Oro Unibank, Inc. 5 years 1.68%
Bloomberg Ticker PHILMMF PM Equity 3 years 3.19%
PPBF 7.71% 0.63% 3.18% 7.82% 9.87% 186.63%

MARKET COMMENTARY NAVPS Graph

We finish off the year of 2019 with a sense of thankfulness,
thankful for the huge rally in bonds to start the year, and
4.00
thankful that the year is over after all the geopolitical noise we
dealt with and the volatility that it caused. Indeed even in the
3.50
last month of the year, markets get blindsided as Duterte
threatens to nationalize two water concessionaires.
3.00
Meanwhile there is better news in the US as Trump
announces that phase one of the trade deal with China 2.50
should be signed by mid-January. Then comes news that
Trump will become the 3rd US President to be impeached. 2.00
The process now goes to the Republican held senate where it
is likely that the impeachment is dropped. 1.50
In the Philippines, November CPI comes in at 1.3% vs 0.8% 1.00
expected, signifying that we have probably seen the low of 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
inflation though most see that inflation will continue to be
benign and stay within BSP target of 2-4% in 2020. BSP then Calendar Year Returns (%)
keeps its key rate at 4% citing global conditions as weak due 15%
to the trade war, but that we should expect December
inflation to pick up due to the super typhoon that hit the
Visayas and African swine flu causing pork prices to rise. 10%
However, to end the year Diokno surprises by saying that
there could be as much as 50bp of rate cuts in 2020 and the
first one could come as early as February and that they will 5%
continue cutting the RRR. Bonds continue their rally to end
the year with the 5y r5-12 bought to 3.9% and the 10y 10-64
4.5% 0%
2018 2017 2016 2015 2014 2013 2012
In the US, the main story is still the trade war. We began the PPBF 0.35% 0.95% -0.21% -1.16% 2.32% 13.96% 6.91%
month down again as Trump said that he will only sign the
agreement when he feels like it and that he may even wait up Volatility of Returns / Annual Standard Deviation (+/-,%)¹
to the end of 2020. This was probably to add to pressure to 15%
China to make more concessions in the deal. Equity markets
give up a full 1% and 10y UST falls from 1.84 to 1.74.
However in the middle of the month he changes his tune and 10%
announces that the deal may be ready by mid-January. 10y
UST promptly goes back to 1.90 levels. 5%

0%
YTD 2018 2017 2016 2015 2014 2013 2012
PPBF 2.11% 2.36% 2.39% 11.18% 8.01% 4.21% 10.58% 3.55%
¹ Since Launch date as of October 1, 2001. ² Standard deviation measures the degree to which the Funds' return fluctuates over time. The higher the number, the more volatile.
Disclaimer: The information contained herein is the property of Philequity Management, Inc. and may not be copied or distributed and is not warranted to be accurate, complete or timely. Opinions
expressed herein may change without prior notice. Neither Philequity or its content provider are responsible for any damages and losses arising from any use of this information. Past performance is
not a guarantee of future results. Investing in mutual funds involves risk and possible losses of principal. Mutual funds are not desposits and not guaranteed by the Philippine Deposit Insurance
Corporation. Consult a professional before investing. For inquiries, please contact Philequity Management, Inc.
Philequity Management, Inc.