PESO EQUITY FUND Launch Date: December 17, 2007 Dealing cut-off time: 12.

17, 2007 Dealing cut-off time: 12.00NN Fact Sheet as of Sep 30, 2015

Investment Policy Market Review

The Pioneer VL Peso Eq-
uity Fund is a Philippine-
peso denominated equi-
ties fund. The investment
objective of the fund is to
achieve long-term growth
by investing in listed
stocks of Philippine com-
panies.
Top Holdings
Security
Ayala Land, Inc
SM Investments Corp
SM Prime Holdings, Inc
Ayala Corp
PLDT
GT Capital Holdings Inc
Universal Robina Corp
JG Summit Holdings Inc
Megaworld Corp
Globe Telecom Inc
Asset Allocation
Concerns over an economic slowdown in China, 2.5% devaluation of the Chinese Yuan, and the
impending Federal Reserve lift-off conspired to pull down global equity markets during 3Q15. The
Philippine Stock Exchange Index slipped 8.9% to close at 6,893.98 in 3Q15 to bring down the mar-
ket by -4.7% during 9M15. The Philippine market saw net foreign selling reach $706Mio in Septem-
ber, the sixth consecutive month of net outflows. Cumulative outflows hit $2bn, a fraction of the
$8.5bn worth of portfolio inflows from 2008 to 1Q15. The Peso likewise weakened 4.3% to P46.71
per USD in end September from P44.79 per USD in end 2014. The local currency depreciated on
account of the Yuan fall, USD strength, and portfolio outflows.
GLO led market gainers, up 35.7%, as the firm continued to grow market share in the data busi-
ness. GTCAP, SMPH, and MER also managed to climb 18.5%-22.5% on continued profit growth. Hold-
ing firms AC, AEV, SM, MPI, and JGS likewise did well, gaining 7%-10% during 9M15. On the other
hand, gaming stocks were sold down with BLOOM falling 58% as the VIP market struggled to grow.
EDC, AGI, EMP, SMC, PCOR, and ICT also fell 32%-35% on poor earnings visibility.
%
The Pioneer Equity Fund fell 5.9%, outperforming the PSEi which slid 8.9% during 3Q15. The fund’s
8.14
return is -2.9%, outperforming the index’s -4.7% during 9M15. The fund took profits in 2Q15 and
7.93 held on to cash during the quarter. The fund minimized its stock investments to around 75% expo-
sure during 3Q15.
5.58
5.21 Outlook and Strategy
4.17 We expect financial markets to remain volatile over the next 6 months. Concerns over a hard land-
4.09 ing in China and the Fed lift-off could remain at the top of investors’ minds. In addition, the political
uncertainty resulting from the 2016 national elections could sustain foreign selling through the
3.87 end of the year. A decision by the Fed to delay raising the federal funds rate could result in a short-
term rally to 7,400- 7,600 by yearend. On the other hand, a Fed lift-off in December could bring the
3.40 PSEi to 6,500 and end in negative territory for 2015.
3.04 The volatility in the near-term could provide investors a window to buy into the fund. The economic
growth prospects of the Philippines remain sound. We expect GDP growth to accelerate from 6% in
2.92 2015 to 6.5% in 2016. Corporate earnings are also seen to expand from 9% in 2015 to 12% in 2016.
Election spending could likely result in stronger public and private consumption from 2H15 through
1H16.

Property
2.24003
17% Services 5Jan15
12% 2.40
1.91915
Industrials 2Jan14
12%
Holdings
2.10
22% 1.88886 2.17610
Financials 2Jan13 1Oct15
7%
1.80
Mining
1.42500
1% 1.39042 2Jan12
Cash
3Jan11
29% 1.50
1.02079
2Jan08
Growth 1.20
0.92543
9M15 Growth -2.85 0.64070 4Jan10
5Jan09
(1Oct15 vs 5Jan15)
0.90

2014 Growth 16.72 Peso Equity Fund (Jan'08-Oct'15)

(5Jan15 vs 2Jan14) 0.60
2008

2009

2011

2014
2012

2015
2013
2010

Launch to Date 117.62

(1Oct15 vs 18Dec07)

This document is authorized for distribution in the Philippines only. This document is solely for the information and use of its intended recipients, to the
exclusion of third parties. The views expressed in this report are strictly for information purposes only. This report includes information based on
sources generally regarded to be reliable. Pioneer Life Inc, however, does not make representations toward the accuracy or completeness of the market
information in this report. Before acting on any advice or recommendation in this report, investors should consider whether the investment is suitable
for their circumstances and objectives. Investment in this fund is subject to liquidity, interest rate, credit, market, management, and operational risk.
Possible loss of principal may also result in the event of a shift to mark-to-market valuation. Insurance linked funds are not insured by the Philippine
Deposit Insurance Corporation (PDIC) and the past performance of a market measure or instrument does not guarantee or predict future performance.