PESO GLOBAL EQUITY FUND

As of July 30, 2021

Key Information and Investment Disclosure

FUND INFORMATION
Launch Date July 18, 2017 Net Asset Value per Unit (NAVPU) PHP 1.318593
Bloomberg Ticker ILPGEQF PM Equity Total Fund NAV (Mn) PHP 1,523.90

INVESTMENT OBJECTIVE AND STRATEGY The Peso Global Equity Fund seeks to achieve long-term growth and
capital appreciation by investing majority of its assets in a Fund with principal exposure in income producing equity
securities in markets throughout the world.

RISK PROFILE As an asset class, Equity investments have the highest risk profile in the universe of funds of InLife and
is for investors with an aggressive risk tolerance. This is for investors who are already invested in the Philippine market
and seeks diversification by having an exposure in global equity markets while investing with Philippine Pesos.

Peso Global Equity Fund

FUND PERFORMANCE AND STATISTICS Purely for reference purposes and is not a guarantee of future results
Price Graph
1.5
1.4
1.3
NAVPU

1.2
1.1
YTD 13.68%
NA

1
0.9
YOY 18.43%
0.8 3 YRS 21.66%
0.7
0.6 Since Inception 31.86%
0.5

Peso Global Equity Fund

Consumer Staples,
ASSET ALLOCATION 15.8% TARGET FUND’S TOP HOLDING COMPANIES
(Target Fund)
Financials, 22.1% Industrials, 15.2% Unilever Plc Roche Holding AG
Procter & Gamble Co. Wolters Kluwer Nv
Cash, 5.2% Information
Technology, 13.0%
Cisco Systems Inc. Sanofi
Consumer
Discretionary, 1.9% Relx Plc BlackRock Inc.
Communication Health Care,
Services, 3.1%
Materials, 3.6% 11.8%
Deutsche Boerse AG Samsung Electronics Co. Ltd.
Utilities, 8.3%

MARKET REVIEW Global equities advanced in July. Markets surged early in the month on reports that jobless claims in the US
fell more than expected and consumer spending strengthened after stagnating in May. The optimistic mood continued in mid-July,
as banks kicked off the quarterly earnings season by beating expectations. However, a pickup in the Delta variant of COVID-19
globally weighed on investor sentiment. US equities rallied, as investors responded positively to the ongoing economic recovery and
strong second quarter earnings releases. However, mixed monetary policy messaging from the US Federal Reserve (Fed) dampened
sentiment. Markets were somewhat jittery after the Fed reiterated record low benchmark rates and confirmed that talks to taper
asset purchases were underway. European markets advanced, supported by strong corporate earnings reported in the second
quarter. Chinese equities declined after policymakers announced a regulatory overhaul that will impact companies that handle large
amounts of data and After School Tutoring (AST) businesses, as well as fresh regulations on how Chinese entities list on stock
markets outside the country. Emerging markets also generated negative returns. At a sector level, most defensives performed better
than cyclicals. Health care and information technology (IT) led the winners. From a style perspective, quality stocks performed
strongly (after months of weakness) and fared better than their growth and value counterparts.

FUND PERFORMANCE The Target Fund returned 1.5%, while the index was up 0.7% in July. The Target Fund’s exposure to high
quality defensives supported performance, primarily driven by industrials and consumer staples holdings. However, the underweight
stance in information technology capped gains. At a stock level, professional services companies Wolters Kluwer and RELX
performed strongly. The former advanced in anticipation of robust half yearly results, which led to an earnings upgrade. The latter
Disclaimer. The information published herein should be used for information purposes only and does not constitute an offer, recommendation, advice or solicitation to any
person to enter into any transaction. All information is subject to change without prior notice. No responsibility or liability is accepted for errors of facts or for any opinion
expressed herein.
 PESO GLOBAL EQUITY FUND
As of July 30, 2021
Key Information and Investment Disclosure

reported solid first half results, with organic growth rates accelerating to above historical levels. It also raised its guidance for the
year; above normal organic growth is likely to continue, and profits are expected to grow faster than revenues. Consumer goods
company Procter & Gamble reported solid fourth quarter earnings, driven by the strongest growth in its beauty and health care
businesses. However, management warned that increasing commodity costs could hit its earnings in the next year. Nevertheless, the
company is well positioned and continues to execute well. Finnish pulp and paper company UPM Kymmene and French engineering
company Schneider Electric enhanced gains. The former reported strong second quarter results. Both top and bottom-line numbers
were ahead of consensus expectations and its near-term market outlook remains bright. The latter raised its full-year guidance and
posted robust first half earnings. The company witnessed solid growth across most geographies and almost all segments, with its
energy management division performing exceptionally well. Strong free cash flow led to the reinstatement of its share buyback
program. Conversely, the lack of exposure to mega-cap technology companies Apple, Microsoft and Alphabet offset some of the
relative performance as they posted very strong quarterly updates. The Fund Manager continues to avoid these stocks on valuation
grounds and as they pay little to no dividends. Additionally, the position in Deutsche Boerse pared gains. The German exchange
group confirmed its full-year guidance and posted a net profit in the second quarter. However, low market volatility weighed on
revenues, and low interest rates kept a lid on interest income.

FUND POSITONING The current macroeconomic environment (huge fiscal stimulus and accommodative monetary policy) has
supported the lower quality and deeply discounted parts of the market. Meanwhile, apathy towards the ‘quality defensive’
companies that form a core component of the portfolio has left many of them trading at unusually low and attractive relative
valuations. The Fund Manager believes these stocks will provide attractive investment outcomes, more or less independently of
which direction the economy takes from here. They aim to provide a resilient (and growing) income stream, as well as capital
preservation and long-term capital growth. The portfolio remains defensively positioned. They continue to maintain a strong quality
bias and own companies with robust balance sheets, attractive valuations, and resilient income generation. The Target Fund has key
holdings in the consumer staples, non-life insurance, financial exchanges, pharmaceuticals, and other sectors with limited correlation
to economic growth. In more cyclical parts of the market, the Target Fund holds several mature businesses in the technology space
(particularly in the semiconductor and hardware industries) that meet its investment criteria. They also have positions in high-quality
industrials businesses. The Target Fund is underweight in the more cyclical areas of the market such as materials and energy, and has
minimal holdings in the consumer discretionary sector.

Disclaimer. The information published herein should be used for information purposes only and does not constitute an offer, recommendation, advice or solicitation to any
person to enter into any transaction. All information is subject to change without prior notice. No responsibility or liability is accepted for errors of facts or for any opinion
expressed herein.