BPI PHILIPPINE EQUITY INDEX FUND

KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT

As of October 31, 2018
FUND FACTS
Classification: Index Tracker Fund Net Asset Value per Unit (NAVPU): Php 95.69
Launch Date: May 20, 2013 Total Fund NAV (Mn): Php 39,416.10
Minimum Investment: Php 10,000.00 Dealing Day: Daily up to 2:30 PM
Additional Investment: Php 1,000.00 Redemption Settlement: T+3 5:00 PM
Minimum Holding Period: None Early Redemption Charge: None
FEES*
Trustee Fees: 1.000% Custodianship Fees: 0.0190% External Auditor Fees: 0.0046% Other Fees: 0.00%
BPI Asset Management HSBC Isla Lipana None
*As a percentage of average *Billings received in 2015 divided*Billings received in 2014 divided by the
daily NAV for the quarter by the average daily NAV average daily NAV
valued at Php39,482.46
Million
INVESTMENT OBJECTIVE AND STRATEGY
The Fund aims to track the performance of the Philippine Stock Exchange Composite Index (PSEi). The Fund shall substantially
invest in stocks comprising the PSEi using the same weights as in the index.

CLIENT SUITABILITY
A client profiling process should be performed prior to participating in the Fund to guide the prospective investor if the Fund is
suited to his/her investment objectives and risk tolerance. Clients are advised to read the Declaration of Trust/Plan Rules of the
Fund, which may be obtained from the Trustee, before deciding to invest.
The BPI Philippine Equity Index Fund is suitable only for investors who:
• Are at least classified as aggressive based on their risk profile
• Have an investment horizon of at least five (5) years
KEY RISKS AND RISK MANAGEMENT
You should not invest in this Fund if you do not understand or are not comfortable with the accompanying risks.
Investors are exposed to adverse changes in the prices of stocks listed in the Philippine Stock Exchange, which
Equity Price
may be brought about by adverse stock market conditions, unfavorable company earnings and valuations and/ or
Risk:
negative developments in domestic and global political and economic conditions.
Investors are exposed to the risk of loss due to the Fund’s inability to convert security holdings to cash immediately
Liquidity Risk: or in instances where conversion to cash is possible but at a highly disadvantageous price due to limited buyers/
sellers in the market, low trading volumes or market disruptions, among other reasons/ factors.

Investors are exposed to actual or potential conflicts of interest in the handling of related party transactions by the
Related Party Trustee, specifically, time deposit placements with the Trustee’s own bank and/ or its subsidiary, purchase of debt
Risk: and equity securities issued by related parties, as well as the execution of trade transactions with related
counterparties.
Index Investors are exposed to the risk of not being able to achieve a level of return that matches the index being tracked
Tracking Risk: by the Fund due primarily to operating and fund management expenses.
In accordance with the provisions in the Declaration of Trust, the Fund employs a risk management policy based on duration. The
Fund may also use financial derivatives to hedge the portfolio against market and credit risks.
• THE UIT FUND IS NOT A DEPOSIT AND IS NOT INSURED BY THE PHILIPPINE DEPOSIT INSURANCE CORP. (PDIC).
• RETURNS CANNOT BE GUARANTEED AND HISTORICAL NAVPU IS FOR ILLUSTRATION OF NAVPU MOVEMENTS/
FLUCTUATIONS ONLY.
• WHEN REDEEMING, THE PROCEEDS MAY BE WORTH LESS THAN THE ORIGINAL INVESTMENT AND ANY LOSSES
WILL BE SOLELY FOR THE ACCOUNT OF THE CLIENT.
• THE TRUSTEE IS NOT LIABLE FOR ANY LOSS UNLESS UPON WILLFUL DEFAULT, BAD FAITH OR GROSS
NEGLIGENCE.

For more information, you can contact us at 845-5218/5755/5799, 816-9252/9606,

email us at [email protected] or visit our website, www.bpiassetmanagement.com.
FUND PERFORMANCE AND STATISTICS AS OF OCT. 31, 2018
(Purely for reference purposes and is not a guarantee of future results)

NAVPU GRAPH NAVPU over the past 12 months

130 Highest 120.82
Fund Benchmark
125 Lowest 92.32
120
115 STATISTICS
110
105
Portfolio Beta 1.00
100 Volatility, Past 1 Year (%) 3 17.66
95 Current Number of Holdings 31
90 Tracking Error, Since Inception4 0.16
85
80
1Returns are net of fees.
2Since inception.
*Benchmark: Philippine Stock Exchange Composite Index (PSEi) 3Measures the degree to which the Fund
fluctuates vis-à-vis its average return over a
CUMULATIVE PERFORMANCE (%) ¹
period of time.
1 mo 3 mos 1YR 3YRS 5YRS S.I. 2 4Measure of deviation between the Fund’s return
Fund -1.96 -6.94 -8.62 -14.50 -0.23 -4.31 and benchmark returns. A lower number means
Benchmark -1.88 -6.93 -8.68 -14.64 0.08 -1.86 the Fund’s return is closely aligned with the
Benchmark (TR) -1.86 -6.70 -8.10 -13.37 5.11 8.32 benchmark.
ANNUALIZED PERFORMANCE (%) ¹ 5Measures the degree of the PSEi based on price
2 appreciation and dividends issued by constituent
1YR 2YRS 3YRS 4YRS 5YRS S.I.
Fund -14.50 -1.90 -0.08 -0.40 1.54 -0.80 stocks.
6Includes
accrued income, investment securities
Benchmark -14.64 -1.80 0.03 -0.26 1.63 -0.34
Benchmark (TR) -13.37 -0.26 1.68 1.43 3.47 1.48 purchased, accrued expenses, etc.
CALENDAR YEAR PERFORMANCE (%) ¹ *Declaration of Trust is available upon request
YTD 2017 2016 2015 2014 through branch of account.
Fund -16.28 24.56 -1.68 -3.95 22.66
Benchmark -16.57 25.11 -1.60 -3.85 22.76
Benchmark (TR)
-15.44 27.15 0.19 -2.02 25.45
PORTFOLIO COMPOSITION
Allocation % of Fund TOP TEN HOLDINGS
Equities 99.83 Name % of Fund
Cash 0.10 SM Investments Corporation 13.81
Time deposits and money market 0.39 Ayala Land, Inc. 8.79
Other receivables - net liabilities -0.32 SM Prime Holdings, Inc. 8.76
Sector Holdings (Equity Portion) Ayala Corporation 7.23
Holding Firms 37.63 BDO Unibank, Inc. 6.97
Property 20.18 Bank of the Philippine Islands 5.14
Financials 17.67 PLDT, Inc. 4.35
Industrials 12.41 JG Summit Holdings, Inc. 4.02
Services 11.06 Jollibee Foods Corp. 3.82
Mining and Oil 0.89 Metropolitan Bank & Trust Co. 3.70

RELATED PARTY TRANSACTIONS

The Fund has investments and trade transactions with Bank of the Philippine Islands, its subsidiaries and related parties:
Ayala Corp. - Php 2,849.08Mn Bank of the Philippine Islands – Php2,179.02Mn
Ayala Land Inc. - Php 3,465.99Mn Globe Telecom, Inc. – Php698.04Mn
Investments in the said outlets were approved by the BPI AMTC’s Board of Directors. Likewise, all related party transactions are
conducted on an arm's length and best execution basis and within established limits.

*Related party in accordance with BPI AMTC’s internal policy

OUTLOOK AND STRATEGY
Market Review. The Philippine Stock Exchange (PSEi) ended October at 7,140 points—declining 1.9% for the month, and
having declined 16.6% year-to-date. Foreigners continued to be net sellers (nine straight months) with portfolio outflows for the
month amounting to PHP10.8 billion or USD202.2 million; this brought year-to-date net foreign outflows to PHP94.5 billion or
USD1.8 billion. Net foreign outflows continued in light of the rising interest rates in the US, and uncertainties brought by the
trade war between China and the US. Market trading volume was also low with average daily turnover of USD90.1 million,
down 17% month-on-month.

Economic data releases continued to put pressure on market sentiment with inflation still at the center stage: September CPI
released early in the month came in at +6.7% YoY, showing increase in prices still having accelerated versus the previous
month (+6.4%). Meanwhile, earnings reports released so far did little to promote positive sentiment. For instance, banking
names missed consensus expectations on the back of lackluster trading losses, and select consumer companies continued to
be plagued with intense competition and rising costs.

Top gainers for the month include DMC, +12.83%; MER, +8.18%; and JFC, +7.39%. Meanwhile, detractors were JGS, -
12.33%; URC, -10.03%; and PGOLD, -9.89%. Year-to-date, SMC, +53.23%; MER, +11.93%; and GLO, +10%, were the
leaders while SECB, -42.56%; GTCAP, -39.12%; and AEV, -36.49%, declined the most.

Fund Performance. The Fund registered a return of -1.96% for the month of October, underperforming against the benchmark
by 8bps. Year-to-date, the Fund posted a return of -16.28%, outperforming the benchmark by 29bps.

Fund Strategy. Our stance is to remain defensive as we continue to be underweight in equities. We will continue to raise cash
and take advantage of any market rally. In buying stocks, we will focus on high quality names with large capitalization and good
liquidity as the low volume environment offers big swings in prices. We would be opportunistic in case of a massive sell-offs,
and use them to position for 2019.

LIST OF PROSPECTIVE INVESTMENTS

The following are among the Fund’s approved investment outlets, wherein the Trustee intends to invest depending on strategy,
availability, or other market-driven circumstances:
(a) Shares of stock of selected corporations, including convertible preferred stocks, which are already listed or being offered
publicly and soon to be listed in the Philippine stock market.
(b) Primarily short-term tradable fixed-income instruments, issued or guaranteed by the Philippine government or the BSP;
marketable instruments that are traded in an organized exchange; investment outlets/ categories the BSP allow. Provided,
that, a financial instrument is regarded as tradable if quoted two-way prices are readily available and regularly available
from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual
and regularly occurring market transactions on an arm’s length basis.
(c) Primarily short-term tradable fixed-income securities issued, underwritten, or otherwise dealt by BPI and/or any of its
subsidiaries, affiliates, their successors-in-interest or assignees, their directors, officers, stockholders, and related interest,
and any of their trust and fund managed accounts, under such terms and conditions as the Trustee may deem to be in the
best interest of the Fund or any such instrument as may be allowed under BSP regulations. Investment with related
interests shall be in accordance with Subsection UX 410.12 (a) of the Manual of Regulations for Banks and Other Financial
Institutions.
(d) Bank deposits, BSP special deposit account or tradable debt instruments issued by the BSP.
(e) Such other investments allowed under regulations issued by the BSP.

BPI Asset Management and Trust Corporation (BPI AMTC) is a subsidiary of the Bank of the Philippine Islands. For any
inquiries and complaints relating to our services and products you may call our hotline: 89-100, or send an email at
[email protected] or write a letter addressed to BPI Asset Management – Consumer Protection, 17F, BPI
Building, Ayala Ave. cor. Paseo De Roxas, Makati City, 1226. BPI AMTC as Trustee / Investment Manager is regulated by the
Bangko Sentral ng Pilipinas (BSP) with telephone number (632) 708-7087 and email address: [email protected]. To
know your rights under BSP Circular No. 857 (Regulations on Financial Consumer Protection), please access a copy at our
website: www.bpiassetmanagement.com.