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A Unit Investment Trust Fund of the Bank of the Philippine Islands Bloomberg Code: INGTEPE Index Fund Fact Sheet – November 29, 2012 Visit us at www.bpiassetmanagement.com NAVPU Graph Top Holdings Cumulative Performance (%)¹ Annualized Performance (%)¹ Calendar Year Performance (%)¹ Key Figures and Statistics Investment Objective The objective of this Fund is to achieve appreciation of long term capital growth in Philippine Peso terms for institutions certified tax-exempt by the BIR, by investing in a diversified portfolio of stocks listed on the Philippine Stock Exchange. The Fund seeks to outperform the Philippine Stock Exchange Composite Index (PSEi). Manager’s Report The Odyssey Tax-Exempt Philippine Equity Fund is a Unit Investment Trust Fund (UITF) and not a bank deposit product. It is not guaranteed by BPI nor by the Philippine Deposit Insurance Corporation (PDIC). As such, units of participation of the investor in the UITF, when redeemed, may be worth more or worth less than his/her initial investment/contributions. Due to the nature of the investments, yield and potential yields cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility of the securities held by the UITF, even if invested in government securities, is for the account of the investor. Historical performance, when presented, is purely for reference purposes and is not a guarantee of future results. The Trustee is not liable for losses, unless upon willful default, bad faith or gross negligence. For the purpose of lodging, clearing, settlement, and delivery of securities in the Fund, the Trustee is authorized to avail of the services of third party institutions such as but not limited to custodians which the Trustee may change or replace without prior notice to or approval from the investors. The Trustee will not be responsible for any loss or damage suffered by the Fund as a result of the third parties’ willful default, gross negligence, or evident bad faith. Investors are advised to read the Declaration of Trust for the Fund, which may be obtained from the office of the Trustee, before deciding to invest. For inquiries, please call: (632) 902-7032 or (632) 902-7033, email [email protected] or visit www.bpiassetmanagement.com. FIGURES AS OF 11/29/2012 Sector Holdings 1 Returns are net of fees. Past performance is not an indication of future returns. 2 Since Inception. 3 The Benchmark of the fund is the Philippine Stock Exchange Index. *Plan Rules are available upon request. Allocation Portfolio Composition: Equities 99.7%, Cash 0.3% Risk Disclosure The Fund is suitable for investors with an aggressive profile or for those who take long-term views. As a marked-to-market UITF, the Fund’s net asset value and total return may fall as well as rise as a result of stock prices and interest rates movements. On redemption of units, an investor may receive an amount less than the original amount of investment. Prior to investment in the Fund, the investor shall undergo a client suitability assessment procedure to determine whether the Fund is appropriate for him considering his investment objective, risk tolerance, preferences and experience. ⁴ Trust fees/custodianship fees as a percentage of average daily NAV for the quarter. ⁵ The Information Ratio evaluates reward-to-risk efficiency relative to the benchmark, while the Sharpe Ratio evaluates reward-to-risk efficiency relative to the risk free rate. The higher the number, the higher the reward per unit of risk. Sharpe and Information Ratios between funds of different classifications are non-comparable. 6 External Audit Fees as a percentage of end-year NAV 1 mo 1YR 3YRS 5YRS S.I.² Fund 1.86 15.44 84.84 54.71 278.53 Benchmark³ 3.98 33.94 85.24 57.62 258.97 Name Main Business % of Fund Philippine Long Distance Telephone Co. Communications 7.64% JG Summit Holdings Incorporated Holding Firms 6.58% Ayala Corporation Holding Firms 6.32% Lafarge Republic Incorporated Construction 5.53% Philippine National Bank Financials 5.46% SM Investments Corporation Holding Firms 5.17% Lopez Holdings Corporation Holding Firms 4.48% Manila Mining Corporation Mining 4.20% GMA Holdings Incorporated Media 3.84% Puregold Price Club Inc Food and Beverage 3.61% 1YR 2YRS 3YRS 4YRS 5YRS S.I.² Fund 15.44 15.93 22.72 33.26 9.12 16.12 Benchmark³ 33.94 17.96 22.81 30.05 9.53 15.43 YTD 2011 2010 2009 2008 2007 Fund 12.60 13.75 44.84 85.62 -55.57 19.14 Benchmark³ 29.01 4.07 37.62 63.00 -48.29 21.43 Net Asset Value per Unit (NAVPU)⁴ PHP 378.53 Total Fund NAV (Mln) PHP 2,468.48 Current Number of Holdings 40 Information Ratio⁵ -1.94 Sharpe Ratio⁵ 0.92 Statistics (Past 5 Years) Fund Benchmark Annualized Return (net) 9.12% 9.53% Annualized Volatility 26.75% 22.33% Portfolio Beta 1.13 General Information Launch Date January 7, 2004 Fund Structure Unit Investment Trust Fund Fund Classification Equity Fund Fund Currency Philippine Peso Minimum Initial Investment PHP 100,000.00 Minimum Transaction PHP 50,000.00 Minimum Holding Period None Management/Trust Fee⁴ 2.00% per annum/ 0.47% per quarter Custodianship Fees⁴ 0.005% per quarter External Audit Fees⁶ 0.002% per quarter Valuation Methodology Marked-to-Market External Auditor Isla Lipana & Co. Available Through Head Office Trustee Bank of the Philippine Islands Third-Party Custodian HSBC, Ltd. (Philippines) Dealing Cut-Off 2:30 PM Market Review. The Philippine Stock Exchange Index (PCOMP) rose 3.98% in November, closing at 5,640.45 on domestic banking M&A expectations. Average turnover was P6.76bn, a 40.8% improvement MoM (ex-BPI cross in October). Foreigners were net buyers of $191.8mn, a contrast to the net selling in October. The Financial and Holding sectors were the best performers at 8.26% and 7.16%, respectively. Conversely, Mining and Services lagged at -9.39% and -1.12%. PCOMP year-to-date performance soared to a region-leading 29.01%, while the MSCI Asia Ex. Japan Index (MXASJ) improved to 15.85%. Philippine 3Q12 GDP numbers beat expectations, coming in at 7.1% versus the 5.4% consensus. Public construction (23.7%), government spending (12%) and household spending (6%) were notable contributors. Corporate earnings results were generally in-line, with PCOMP third quarter income growth of 12% year-on-year (YoY), bringing 9- month earnings growth to 25.6% YoY. Talks of Bank of the Philippine Islands acquiring Philippine National Bank surfaced during the second half of the month, reportedly involving a share swap based on a P96/share (1.7x P/B) valuation for the latter. No specifics have been officially released, though discussions between the two have contributed to the financial sector’s outperformance, as investors took positions on other likely acquisition targets. The SEC announced that companies in breach of the 40% foreign ownership limit would be given a five-year “curing period” to comply. Fund Performance. The Fund rose 1.86% in November, underperforming the benchmark PCOMP’s 3.98%. The 212bps underperformance primarily came from the fund’s overweight position in the mining sector. Fund Strategy. Given the Philippine’s healthy macroeconomic factors, domestic-consumption driven economy and positive corporate earnings, we maintain our overweight on domestic equities. 95 140 185 230 275 320 365 410 455 Nov-07 Feb-09 May-10 Aug-11 Nov-12 Fund Benchmark 2.8% 5.5% 5.5% 8.4% 8.9% 13.1% 14.5% 16.0% 25.3% Others Food & Beverage Construction Property Power & Water Financials Mining Communications/Media Holding Firms Any prospective investment shall be limited to the type of investments described in the Declaration of Trust for the Fund.
