Philam Life Performance Report Full Year · PDF filePerformance Report Full Year 2014 Anong...

Philam LifeUnit-linked FundsPerformance ReportFull Year 2014

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Philam Life Unit-linked FundsPerformance Report Full Year 2014

June 2015

Dear Valued Policyholder,

We are pleased to present to you Philam Life’s 2014 Unit-Linked Fund Performance Report covering our various investment funds.

The Philippines reported another year of strong economic growth in 2014, led by domestic consumption, exports, manufacturing, as well as moderate improvements in agriculture. You will find in the following pages a more in-depth look at the developments that affected both the local and global markets.

Overall, Philam Life’s unit-linked funds have grown in line with the positive performance of the economy in 2014:

Bond Funds 2014 Return Currency Philam Life Fixed Income Fund 4.51% Peso PAMI Philam Bond Fund 1.99% Peso Philam Life Dollar Bond Fund 7.54% Dollar Philam Life Global Bond Fund 3.40% Dollar

Balanced Funds 2014 Return Currency Philam Life Balanced Fund 13.09% Peso PAMI Philam Fund 13.45% Peso

Equity Funds 2014 Return Currency Philam Life Equity Fund 19.09% Peso PAMI Philam Strategic Growth Fund 17.71% Peso

We would also like to take this opportunity to share with you the company’s overall performance in 2014 based on its audited financial statements:

- Total Assets of PHP226.8 billion, an increase of 8% vs PY - Net Worth of PHP85.2 billion, an increase of 11% vs PY - Paid up Capital of PHP1.9 billion - Total Revenues of PHP35.2 billion, an increase of 4% vs PY - Gross Premiums of PHP18.6 billion - Investment Income of PHP12.5 billion - Net Income of PHP5 billion

We are thankful for your loyalty and continued patronage. We shall continue to fulfill our commitments to you, our policyholders.

Should you have any inquiries, please do not hesitate to call us at (+632) 528-2000 or e-mail us at [email protected]. You may also visit our website at www.philamlife.com or go to the nearest Philam Life Customer Service Center for assistance.

Very truly yours,

J. AXEL BROMLEYChief Executive Officer

Philippine Gross Domestic Product (GDP) growth came in at 6.1% for 2014, lower than the 7.2% growth posted in 2013. In spite of the decline, Philippine growth ranked second in Asia, behind China (7.4% growth) and ahead of Malaysia (6.0%), Vietnam (6.0%), and Indonesia (5.0%). Sources of strength continue to be domestic consumption, services, exports, and manufacturing, with a moderate improvement seen in agriculture. Government spending was weaker, due in part to issues related to the Disbursement Acceleration Program and its trickle-down effect on other government agencies. Investment in inventories was also weak, due mainly to issues on port congestion, which is gradually being alleviated.

Gross International Reserves remain at a high level (USD80 billion) as OFW remittances continue to be robust (USD24.3 billion, up 5.8% from 2013). Inflation was higher at 4.2% during the year compared to 2.9% in 2013 on higher food and power prices (the former largely caused by logistics problems stemming from the Manila truck ban), although still within the Bangko Sentral ng Pilipinas’ (BSP) target range of 3-5%. Higher inflation expectations prompted the BSP to raise overnight rates by 0.50% to 4.50% and reserve requirement rates were also raised by 2% to 20%. The Philippine Peso weakened marginally, closing the year at PHP44.72 from PHP44.40 during the previous year. Sustained improvements in economic management continue to be recognized by the international investment community – Standard & Poor’s raised its Philippine credit rating by one notch to BBB in May, with Moody’s Investor Service upgrading its rating in similar fashion to Baa2 in December. Both ratings are now two notches above investment grade. These actions firmly established the country as an investment grade credit.

Looking forward, the outlook for the economy continues to be positive in 2015. Consensus GDP growth forecasts are at 6.3%, with the official government target set at a more aggressive 7-8%. Inflation according to the BSP should range between 2-4%, lower compared to 2014 due in part to lower oil prices. Benign inflation should anchor interest rates at relatively low levels, which should bode well for the business environment.

Overall, the usual areas of economic strength seen in recent years are expected to continue to perform, with a meaningful increase in government spending a potential catalyst for outperformance in the year ahead.

Philam Life Unit-linked Funds

GENERAL MARKET REVIEW

LOCAL MARKETEquities Market

The local stock market benchmark Philippine Stock Exchange Index clinched its sixth straight year of gains by closing 2014 at 7,231, 23% above end-2013’s 5,889. Over the said six years, the market has averaged an annual gain of 25% per year. 2014 was also the sixth straight year of net foreign buying: foreigners bought about USD1.3 billion worth of local stocks – an 85% increase year-on-year. During the year, Meralco and Emperador Inc. replaced Manila Water Company, Inc and Philex Mining in the benchmark Index.

For 2015, local corporate earnings growth is expected to return to double digit territory as the market attempts to make it seven straight years in positive territory.

Bond Market

Local bond investors entered 2014 on a cautious note on the back of higher inflation expectations, which raised the possibility of interest rate hikes from the BSP. Given this backdrop, market players pushed up bond yields during the early part of the year, with the 10-year Fixed Rate Treasury Notes (FXTN) yield rising from 3.6% at end-2013 to 4.4% in February and the 20-year FXTN yield up from 4.6% to 5.4% during the same period. However, actual inflation numbers reported were consistently lower than market expectations, thereby capping the rise in yields.

The BSP’s policy actions tempered inflation expectations, provided confidence to investors, and lent stability to the bond market as the year progressed. Credit rating upgrades also sustained demand for Philippine assets. On the supply side, the Bureau of Treasury executed a bond exchange in August where a total of PHP140 billion in new 10-year FXTNs were issued. The new bonds were well-received by the market and fetched a coupon of 4.125%. This was the first bond exchange conducted since 2011.

Inflation began to decline during the latter part of the year, due in part to the rapid decline in oil prices. This, together with robust market liquidity, a still low global interest rate environment, and sound local economic fundamentals caused bond yields to trend lower as the year drew to a close. The 10-year and 20-year FXTN finally settled at 3.9% and 4.8%, respectively, at year-end.

Investors are maintaining a cautious stance going into 2015, due mainly to the prospect of higher interest rates in the United States which, if it materializes, may exert upward pressure on local bond yields. However, conditions remain broadly positive on the local front, with inflation expected to be lower compared to 2014, and the BSP expected to maintain policy rates at current levels for the better part of the year.

GLOBAL MARKETS

The high level of volatility experienced by the global markets in 2013 resulted in a general sentiment of uncertainty among investors going into 2014. The so-called taper tantrum caused U.S. interest rates to rise to multi-year highs during the second half of 2013, which triggered a broad sell-off in equity and bond markets across the globe. With investors anticipating a continued rise in U.S. interest rates, forecasts were relatively downbeat for 2014. However, economic data flowing out of the U.S. was not encouraging – weak growth, low inflation, and high unemployment was prevalent during 1H2014. Economic conditions therefore diminished prospects of the Federal Reserve raising benchmark interest rates sooner rather than later. Yields on U.S. Treasury bonds subsequently began a steady downward trend that progressed throughout the year, which fueled a rally in asset prices worldwide. Also, the Federal Reserve embarked on a process to gradually end its Quantitative Easing program, with the final step taking place in October.

Economic activity in the Eurozone continued to be lackluster in 2014, seeing no material improvement from the previous year. An emerging concern was the threat of deflation in the continent. In response, the European Central Bank lowered policy interest rates during the second quarter, in an effort to stimulate the economy. This move, however, did not have a meaningful effect on business activity in the region and sparked discussion calling for more aggressive stimulus measures.

Asia continued to be the driver of global growth during the year. Average GDP growth in the region was a robust 6.3%. Inflation was fairly low, so was unemployment. Government balance sheets likewise remained healthy. Concerns emerged regarding a protracted slowdown in the Chinese economy, but the government responded by initiating stimulus measures in the form of higher public spending and lower policy interest rates.

A major development in 2014 was the steep decline in world oil prices, due mainly to increasing supply out of the U.S., the reluctance of the Organization of Petroleum Exporting Countries (OPEC) bloc to reduce production levels, and prospects of weaker demand globally. Prospects remain arguably mixed going into 2015. U.S. growth is expected to be moderate, but improvements have been observed in the labor markets. The Eurozone continues to struggle, with markets expecting elevated action from the European Central Bank. Meanwhile, Asia is expected to remain a source of strength. Sustained low oil prices will keep inflation manageable, allowing central banks to maintain monetary policy that is supportive of growth.

FUND MANAGERS

Philam Life’s variable life funds are managed by Philam Life’s team of investment professionals who have 20 to 30 years of experience and expertise in the field of fund management. As of December 31, 2014 total assets under management reached over PHP34 billion, excluding those of other Philam affiliates. Philam Life combines its expertise with the strength of its senior management to manage portfolios effectively in order to achieve favorable returns.

Financial Statement As of December 31, 2014

STATEMENT OF ASSETS AND LIABILITIES

ASSETSCash and cash equivalentsFinancial assets at FVTPL*Loans and receivablesAccrued incomeOther Assets-net

Total Assets

LIABILITIESAccounts payable and accrued expenseOther Liabilities-net

Total Liabilities

Net Asset Value (NAV)

ASSETSFinancial assets at FVTPL*




338,715,167 1,974,266,276

65,660,000 19,098,727

2,397,740,170

4,651,186 7,295,748

11,946,935

2,385,793,236

1,003,418,956

1,003,418,956

394,311,844

394,311,844

Philam Life Fixed Income Fund

Philam Life Peso Variable Funds in PHP

PAMI Philam Bond Fund

Growth Invest Tranche 1

*Fair Value Through Profit or Loss

973,191,735 9,801,294,421

- 4,094,110

15,478,667

10,794,058,932

102,211,518

5,950,029

108,161,547

10,685,897,385

6,450,920,437

6,450,920,437

168,354,787

168,354,787

Philam Life Equity Fund

315,831,171 3,854,764,004

32,340,000 15,833,353

1,452,732

4,220,221,260

29,122,727 49,218,781

78,341,508

4,141,879,752

3,012,827,663

3,012,827,663

45,099,708

45,099,708

Philam Life Balanced Fund

PAMI Philam Strategic Growth Fund PAMI Philam Fund



$6,170,039

$6,170,039

$3,641,250

$3,641,250

Financial Statement As of December 31, 2014

STATEMENT OF ASSETS AND LIABILITIESPhilam Life Dollar Variable Funds in USD

ASSETSCash and cash equivalentsFinancial assets at FVTPL*Loans and receivablesAccrued incomeOther Assets-net

Total Asset

LIABILITIESAccounts payable and accrued expenseOther Liabilities-net

Total Liabilities






Philam Life Dollar Bond Fund

Winning Edge Tranche 1

Asia’s Best Tranche 1

*Fair Value Through Profit or Loss

$2,653,174 $75,178,379

$1,122,949

$773,300

$79,727,801

$179,994

$1,094,945

$1,274,939

$ 78,452,862

$3,275,161

$3,275,161

$3,630,000

$3,630,000

Philam Life Global Bond Fund

$14,314,085

$14,314,085

Winning Edge Tranche 2

High-Water Mark Fund 2019

Asia’s Best Tranche 2

$1,457,890 $9,001,020

$88,876 $136,210

$10,683,996

$25,063 $27,438

$52,501

$10,631,495

Philam Life Fixed Income Fund Fund Inception Date: November 10, 2004

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The Philam Life Fixed Income Fund is a PHP-denominated investment fund created for unit-linked insurance contracts issued by The Philippine American Life and General Insurance Company (Philam Life). It is an investment option for the unit-linked policyholder with a preference for investing in high-quality interest-bearing debt instruments that present low to moderate levels of risk. The investment objective of the Philam Life Fixed Income Fund is to provide stable income over the medium- to long-term, and preserve capital by investing primarily in PHP-denominated fixed-income securities issued by the government and reputable corporate issuers.

FUND PERFORMANCE*

2014 Return 4.51%2013 Return 5.22%2012 Return 7.37%2011 Return 11.05%2010 Return 10.46%3 Years Return (annualized as of Dec 31, 2014) 5.69%5 Years Return (annualized as of Dec 31, 2014) 7.69%Return since Inception (annualized as of Dec 31, 2014) 7.69%

* Fund returns are calculated based on Net Asset Value per Unit Past performance is not indicative of future performance.

PORTFOLIO STATISTICS (as of Dec 31, 2014)

Net Asset Value (NAV in PHP) 2,385,793,236 *Net Asset Value per Unit (NAVPU) 2.1188 Weighted Duration (in years) 5.82 Weighted Tenor/Maturity (in years) 8.00 Weighted Average YTM 3.69% * Based on Audited Financial Statement. NAV is net of 2.0% fund management charge, transaction costs, and audit fees.

PORTFOLIO MIX* (as of Dec 31, 2014)

Cash & Cash Equivalents 14.49%Philippine Issued Peso Government Bonds 85.51%

* Excluding accrued income

FIXED INCOME SECURITIES (as of Dec 31, 2014)

Top 10 Issues Maturity % of Portfolio

PH Issued PHP Govt Bonds 11/22/2019 12.81%PH Issued PHP Govt Bonds 8/20/2024 10.21%PH Issued PHP Govt Bonds 1/19/2022 8.69%PH Issued PHP Govt Bonds 5/22/2017 7.52%PH Issued PHP Govt Bonds 3/20/2021 7.46%PH Issued PHP Govt Bonds 7/19/2031 7.30%PH Issued PHP Govt Bonds 12/16/2035 7.19%PH Issued PHP Govt Bonds 10/24/2037 6.17%PH Issued PHP Govt Bonds 3/1/2027 5.60%PH Issued PHP Govt Bonds 9/4/2016 5.53%

NAVPU PERFORMANCE SINCE INCEPTION*

* Net Asset Value Per Unit movement since inception. Inception price is at Php1.00

Philam Life Equity Fund

Fund Inception Date: November 10, 2004

The Philam Life Equity Fund is a PHP-denominated investment fund created for unit-linked insurance contracts issued by The Philippine American Life and General Insurance Company (Philam Life). This investment option is for the unit-linked policyholder with an investment objective of capital appreciation over a long-term investment horizon, and the risk appetite for the stock market. The investment objective of the Philam Life Equity Fund is to achieve capital growth by investing in an efficient and diversified portfolio of predominantly growth companies while including appropriate value stocks.

FUND PERFORMANCE*2014 Return 19.09%2013 Return -5.55%2012 Return 24.44%2011 Return 0.31%2010 Return 49.15%3 Years Return (annualized as of Dec 31, 2014) 11.86%5 Years Return (annualized as of Dec 31, 2014) 15.93%Return since Inception (annualized as of Dec 31, 2014) 13.41%



Net Asset Value (NAV in PHP) 10,685,897,385 *Net Asset Value per Unit (NAVPU) 3.5805 * Based on Audited Financial Statement. NAV is net of 2.0% fund management charge, transaction costs, and audit fees.


Cash & Cash Equivalents 8.99%Common Stocks 91.01%


COMMON STOCKS (as of Dec 31, 2014)

Top 10 Issues % of PortfolioPhil Long Distance Tel Co 9.98%SM Investments Corporation 9.35%Ayala Land Inc 8.29%Universal Robina Corporation 6.29%Ayala Corporation 5.46%JG Summit Holdings Inc 4.97%BDO Unibank Inc 4.95%Bank of the Philippine Islands 4.50%SM Prime Holdings Inc 4.37%International Container Terminal Serv 3.85%

COMMON STOCKS by SECTOR (as of Dec 31, 2014) Sector % of PortfolioFinancials 34.39%Industrials 25.17%Telecommunication Services 10.61%Consumer Staples 7.66%Utilities 6.74%Consumer Discretionary 3.45%Energy 2.55%Materials 0.44%



0.81.21.62.02.42.83.23.64.0

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Philam Life Balanced Fund Fund Inception Date: May 22, 2007


The Philam Life Balanced Fund is a PHP-denominated investment fund created for unit-linked insurance contracts issued by The Philippine American Life and General Insurance Company (Philam Life). This investment option is for the unit-linked policyholder with an investment objective of long-term capital appreciation by investing primarily in PHP-denominated equities, equity-related securities and debt securities.

FUND PERFORMANCE*

2014 Return 13.09%2013 Return -4.31%2012 Return 23.90%2011 Return 1.34%2010 Return 41.93%3 Years Return (annualized as of Dec 31, 2014) 10.27%5 Years Return (annualized as of Dec 31, 2014) 14.03%Return since Inception (annualized as of Dec 31, 2014) 8.18%





Cash & Cash Equivalents 7.47%Philippine Issued Peso Government Bonds 31.67%Corporate Securities 0.77%Common Stocks 60.10%



Top 10 Issues % of Portfolio

Phil Long Distance Tel Co 10.70%SM Investments Corporation 9.47%Ayala Land Inc 8.24%Universal Robina Corporation 6.47%Ayala Corporation 5.62%BDO Unibank Inc 5.38%JG Summit Holdings Inc 4.96%SM Prime Holdings Inc 4.53%Bank of the Philippine Islands 4.44%Metropolitan Bank and Trust Co 4.03%

FIXED INCOME SECURITIES (as of Dec 31, 2014) Top 10 Issues Maturity % of Portfolio

PH Issued PHP Govt Bonds 8/18/2018 15.43%PH Issued PHP Govt Bonds 5/22/2017 14.63%PH Issued PHP Govt Bonds 4/25/2016 14.46%PH Issued PHP Govt Bonds 1/19/2022 12.67%PH Issued PHP Govt Bonds 9/4/2016 12.11%PH Issued PHP Govt Bonds 5/23/2018 10.68%PH Issued PHP Govt Bonds 2/19/2019 10.29%PH Issued PHP Govt Bonds 11/22/2019 3.74%PH Issued PHP Govt Bonds 3/20/2021 3.63%Smart Comm FRCN 3/19/2022 2.36%

FRCN - Fixed Rate Corporate Note


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* Net Asset Value Per Unit movement since inception. Inception price is at Php 3.5566

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PAMI Philam Bond Fund Fund Inception Date: August 1, 2012

The PAMI Philam Bond Fund is a PHP-denominated single asset fund invested in Philam Asset Management Inc.’s PAMI Bond Fund (PBF). PBF is an open-end mutual fund with a portfolio composed of government securities and high-grade commercial papers. The investment focus of the fund is capital preservation. It is a first-rate pick for programmed capital build-up that can be used for retirement, education, incentive programs, and other individual or corporate financial purposes.

FUND PERFORMANCE*

2014 Return 1.99%2013 Return 6.01%Return since Inception (annualized as of Dec 31, 2014) 5.23%




FIXED INCOME SECURITIES (as of Dec 31, 2014)

Top 10 Issues of PBF Maturity % of Portfolio



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PAMI Philam Strategic Growth Fund Fund Inception Date: August 1, 2012

The PAMI Philam Strategic Growth Fund is a PHP-denominated single asset fund invested in Philam Asset Management Inc.’s PAMI Strategic Growth Fund (PSGF). It is a long-term investment that gives superior capital growth through a professionally managed stock portfolio. PSGF is an equity fund invested in listed or soon to be listed issues in the Philippine Stock Exchange. It is the ideal fund for people who are after capital growth but do not have the expertise or the resources to develop and manage a highly diversified equity portfolio.

FUND PERFORMANCE*

2014 Return 17.71%2013 Return -8.45%Return since Inception (annualized as of Dec 31, 2014) 4.70%





Top 10 Issues of PSGF % of Portfolio

Phil Long Distance Tel Co 10.60% SM Investments Corporation 9.44% Ayala Land Inc 8.36% Universal Robina Corporation 6.48% Ayala Corporation 5.66% SM Prime Holdings Inc 5.15% JG Summit Holdings Inc 4.89% BDO Unibank Inc 4.88% Metropolitan Bank and Trust Co 4.64% International Container Terminal Serv 3.70% NAVPU PERFORMANCE SINCE INCEPTION*



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PAMI Philam Fund Fund Inception Date: August 1, 2012

The PAMI Philam Fund is a PHP-denominated single asset fund invested in Philam Asset Management Inc.’s PAMI Fund (PFI). It is a balanced fund that provides its shareholders access to the stock market while tempering the market’s volatility with a steady stream of interest income. The fund’s portfolio is a healthy balance between blue chip stocks and fixed income instruments. It is an ideal vehicle for moderate investors who want to avail of the profit opportunities of the stock market but are not totally comfortable with the risks involved in equity investments.

FUND PERFORMANCE*

2014 Return 13.45%2013 Return -8.76%Return since Inception (annualized as of Dec 31, 2014) 2.04%





Top 10 Issues of PFI % of Portfolio

Phil Long Distance Tel Co 10.72% SM Investments Corporation 9.45% Ayala Land Inc 8.34% Universal Robina Corporation 6.49% Ayala Corporation 5.68% SM Prime Holdings Inc 5.24% BDO Unibank Inc 4.98% JG Summit Holdings Inc 4.86% Metropolitan Bank and Trust Co 4.70% International Container Terminal Serv 3.62% FIXED INCOME SECURITIES (as of Dec 31, 2014)

Top 10 Issues of PFI Maturity % of Portfolio



* Net Asset Value Per Unit movement since inception. Inception price is at $1.00

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Philam Life Dollar Bond Fund Fund Inception Date: July 12, 2005

The Philam Life Dollar Bond Fund is a USD-denominated investment fund created for dollar unit-linked insurance contracts issued by The Philippine American Life and General Insurance Company (Philam Life). The Philam Life Dollar Bond Fund is an investment option for the dollar unit-linked policyholder with a preference for investing in Philippine government and corporate fixed-income securities. The Fund aims to provide income growth while maintaining moderate liquidity over the medium- to long-term investment horizon.

FUND PERFORMANCE*




Net Asset Value (NAV in USD) 78,452,862 *Net Asset Value per Unit (NAVPU) 2.0010 Weighted Duration (in years) 6.44 Weighted Tenor/Maturity (in years) 9.17 Weighted Average YTM 3.38% * Based on Audited Financial Statement. NAV is net of 2.0% fund management charge, transaction costs, and audit fees.


Cash & Cash Equivalents 3.35%Philippine Issued Dollar Government Bonds 96.65%


PHILIPPINE SOVEREIGN SECURITIES (as of Dec 31, 2014)


PH Issued US$ Govt Bonds 10/23/2034 11.14%PH Issued US$ Govt Bonds 10/9/2023 9.48%PH Issued US$ Govt Bonds 6/17/2019 8.43%PH Issued US$ Govt Bonds 3/16/2025 7.68%PH Issued US$ Govt Bonds 1/14/2031 6.18%PH Issued US$ Govt Bonds 2/2/2030 5.83%PH Issued US$ Govt Bonds 1/15/2021 5.76%PH Issued US$ Govt Bonds 1/20/2020 5.74%PH Issued US$ Govt Bonds 1/23/2023 5.20%PH Issued US$ Govt Bonds 3/17/2020 4.52%



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Philam Life Global Bond Fund Fund Inception Date: July 12, 2005

The Philam Life Global Bond Fund is a USD-denominated investment fund created specifically for dollar unit-linked insurance contracts issued by The Philippine American Life and General Insurance Company (Philam Life). The Philam Life Global Bond Fund is an investment option for the dollar unit-linked policyholder with a preference for investing in high-quality, investment-grade fixed-income securities with low to moderate levels of risk over a medium- to long-term investment horizon. The Fund aims to preserve capital and provide stable income growth over the medium- to long-term.

FUND PERFORMANCE*




Net Asset Value (NAV in USD) 10,631,495 *Net Asset Value per Unit (NAVPU) 1.5345 Weighted Duration (in years) 3.10 Weighted Tenor/Maturity (in years) 4.73 Weighted Average YTM 2.31% * Based on Audited Financial Statement. NAV is net of 2.0% fund management charge, transaction costs, and audit fees.


Cash & Cash Equivalents 13.78%Foreign Corporate Securities 86.22%


FOREIGN SECURITIES (as of Dec 31, 2014)


Bangkok Bank 10/18/2020 5.40%Siam Commercial Bank 4/7/2019 4.54%China Overseas 11/10/2020 3.60%Hutch Whampoa Ltd 12/29/2049 3.41%Reliance Hdg USA 2/14/2022 3.02%ICICI Bank Ltd 11/16/2020 2.46%Hutch Whampoa Ltd 1/13/2022 2.40%PCCW Capital 4/17/2022 2.40%Sun Hung Kai Pro 2/14/2022 2.36%Swire Pro 6/18/2022 2.36%


The Philam Life High-Water Mark (HWM) Fund 2019 is a USD-denominated single-asset fund that locks in the highest NAVPU of the fund at maturity. The fund is invested in a 10-year structured note issued by Barclays Bank PLC, which is exposed to various asset classes and markets, such as global and emerging market equities and bonds. On a daily basis, the note allocates its exposure between risky and risk-free assets to maximize returns while ensuring that the highest NAVPU is protected at maturity.

FUND PERFORMANCE*




Net Asset Value (NAV in USD) 14,314,085 *Net Asset Value per Unit (NAVPU) 1.2347 Remaining Life (in years) 4.37 * Based on Audited Financial Statement. NAV is net of 2.2% fund management charge.


Mutual Fund % of Portfolio

Aberdeen Global World Equity Fund 35.00%Aberdeen Global EM Equity Fund 7.50%BlackRock Global Funds - Global SmallCap Fund 7.50%Parvest US Dollar Bond Fund 16.00%Pimco Total Return Bond Fund 16.00%MFS Meridian EM Debt Fund 8.00%PIMCO Funds Glb Investors - Glb Real Return Fund 10.00%


Philam Life High-Water Mark Fund 2019 (or Prime Yield) Fund Inception Date: May 13, 2009


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The Philam Life Principal-Protected Fund is a USD-denominated single-asset fund invested in an index-linked structured note issued by HSBC Bank PLC. The structured note provides 100% principal protection at maturity and a participation in the performance of Standard and Poor’s (S&P) 500 and S&P BRIC (Brazil Russia India China) 40 indices.

FUND PERFORMANCE*

2014 Return -1.57%2013 Return 0.34%2012 Return -1.28%2011 Return 3.95%2010 Return 5.47%3 Years Return (annualized as of Dec 31, 2014) -0.84%5 Years Return (annualized as of Dec 31, 2014) 1.34%Return since Inception (annualized as of Dec 31, 2014) 0.21%



Net Asset Value (NAV in USD) 6,170,039 *Net Asset Value per Unit (NAVPU) 1.0138 Remaining Life (in years) 1.42 * Based on Audited Financial Statement. NAV is net of 2.5% administrative charge.


Philam Life Principal-Protected Fund(or AIG Winning Edge Tranche 1)Fund Inception Date: June 3, 2008

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The Philam Life Principal-Protected Fund is a USD-denominated single-asset fund invested in an index-linked structured note issued by HSBC Bank PLC. The structured note provides 100% principal protection at maturity and a participation in the performance of Standard and Poor’s (S&P) 500 and S&P BRIC (Brazil Russia India China) 40 indices.

FUND PERFORMANCE*

2014 Return -0.86%2013 Return 1.26%2012 Return -0.84%2011 Return 2.89%2010 Return 5.67%3 Years Return (annualized as of Dec 31, 2014) -0.15%5 Years Return (annualized as of Dec 31, 2014) 1.59%Return since Inception (annualized as of Dec 31, 2014) 0.69%





Philam Life Principal-Protected Fund 2 (or AIG Winning Edge Tranche 2) Fund Inception Date: July 17, 2008


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-14

The Philam Life Asia’s Best Fund is a USD-denominated single-asset fund invested in a structured note issued by Citigroup Funding Inc. The structured note protects at least 80% of the principal at maturity and provides a participation in the performance of the Hang Seng China Enterprises Index (HSCEI Index) and India’s equity index (NIFTY Index).

FUND PERFORMANCE*

2014 Return 3.86%2013 Return -0.36%2012 Return 15.17%3 Years Return (annualized as of Dec 31, 2014) 6.02%Return since Inception (annualized as of Dec 31, 2014) -0.84% * Fund returns are calculated based on Net Asset Value per Unit Past performance is not indicative of future performance.




Philam Life Asia’s Best Tranche 1

Fund Inception Date: July 12, 2011


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14

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The Philam Life Asia’s Best Fund is a USD-denominated single-asset fund invested in a structured note issued by Citigroup Funding Inc. The structured note protects at least 80% of the principal at maturity and provides a participation in the performance of the Hang Seng China Enterprises Index (HSCEI Index) and India’s equity index (NIFTY Index).

FUND PERFORMANCE*

2014 Return 8.15% 2013 Return 2.22% 2012 Return 13.38% 3 Years Return (annualized as of Dec 31, 2014) 7.82% Return since Inception (annualized as of Dec 31, 2014) 4.98% * Fund returns are calculated based on Net Asset Value per Unit Past performance is not indicative of future performance.




Philam Life Asia’s Best Tranche 2 Fund Inception Date: December 2, 2011


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1.0

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The Philam Life Growth Invest Fund is a PHP-denominated single-asset fund invested in a structured note issued by ING Bank NV. The structured note protects at least 80% of the principal at maturity and provides a participation in the performance of four exchange-traded funds related to commodity-related equities and Chinese equities, namely 1.) Market Vectors Agribusiness ETF (MOO US Equity), 2.) Energy Select Sector SPDR Fund (XLE US), 3.) iShares FTSE/Xinhua A50 China Index ETF (2823 HK Equity), and 4.) Market Vectors Gold Miners ETF (GDX US Equity).

FUND PERFORMANCE*

2014 Return 1.16%2013 Return -17.99%2012 Return 1.92%3 Years Return (annualized as of Dec 31, 2014) -5.44%Return since Inception (annualized as of Dec 31, 2014) -9.17% * Fund returns are calculated based on Net Asset Value per Unit Past performance is not indicative of future performance.


Net Asset Value (NAV in PHP) 394,311,844 *Net Asset Value per Unit (NAVPU) 0.7309 Remaining Life (in years) 2.75 * Based on Audited Financial Statement. NAV is net of 3.2% administrative charge.



Philam Life Growth Invest Tranche 1 Fund Inception Date: September 28, 2011

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FUND PERFORMANCE*

2014 Return 0.52%2013 Return -12.97%Return since Inception (annualized as of Dec 31, 2014) -9.01%



Net Asset Value (NAV in PHP) 168,354,787 *Net Asset Value per Unit (NAVPU) 0.7555 Remaining Life (in years) 3.03 * Based on Audited Financial Statement. NAV is net of 3.2% administrative charge.



Philam Life Growth Invest Tranche 2 Fund Inception Date: January 11, 2012

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FUND PERFORMANCE* 2014 Return -0.24%2013 Return -15.43%Return since Inception (annualized as of Dec 31, 2014) -10.35% * Fund returns are calculated based on Net Asset Value per Unit Past performance is not indicative of future performance.


Net Asset Value (NAV in PHP) 45,099,708 *Net Asset Value per Unit (NAVPU) 0.7636 Remaining Life (in years) 3.53

* Based on Audited Financial Statement. NAV is net of 3.2% administrative charge.



Philam Life Growth Invest Tranche 3 Fund Inception Date: July 12, 2012

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13

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13

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-14

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-14

DISCLOSURE STATEMENT

Readership: This document is intended solely for the addressee(s). Its content may be legally privileged and/or confidential. This materials is only valid if distributed in the Philippines

Opinions: Any opinion expressed in this document may be subject to change without notice. We are not soliciting or recommending any action based on this material

Risk Warning: Past performance is not indicative of future results. Our investment management services relate to a variety of investments, each of which can fluctuate in value. The value of portfolios we manage may fall as well as rise, and the investor may not get back the full amount originally invested. The investment risks vary between different types of instruments. For example, for investments involving exposure to a currency other than that in which the portfolio is denominated, changes in the rate of exchange may cause the value of investments, and consequently the value of the portfolio, to go up or down. In the case of a higher volatility portfolio the loss on realization or cancellation may be very high (including total loss of investment), as the value of such an investment may fall suddenly and substantially.

In making an investment decision, prospective investors must rely on their own examination of the merits and risks involved.

Unless otherwise noted, all information contained herein is sourced from Philam Life internal data.

The content included herein has been shared with various in-house departments within the member companies of Philam Life, in the ordinary course of completion. All Philam Life member companies comply with the confidentiality requirements of their respective jurisdictions. Parts of this presentation may be based on information received from sources we consider reliable.

About Philam Life

The Philippine American Life and General Insurance Company (Philam Life) is the country’s premier life insurance company. Established on June 21, 1947, Philam Life has earned the trust of customers for its financial strength, strong brand name, and ability to deliver on its promises.

Philam Life has P226.8 billion in total assets as of December 31, 2014 and has delivered timely pay outs of over P9 billion in education benefits (2004-2014) and over P118 billion in insurance benefits (1950-2014), while serving over 600,000 individual policyholders and over 1,700,000 insured group members.

Philam Life understands the real-life needs of its customers and provides the right plans and the right solutions including life protection, health insurance, savings, education, retirement, investment, group and credit life insurance. It also offers bancassurance and fund management products and services through its subsidiaries—BPI Philam Life Assurance Company (BPI-Philam) and Philam Asset Management Inc. (PAMI).

Philam Life is a member of AIA Group Limited, the largest independent publicly listed pan-Asian life insurance group.

About AIA

AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and representative offices in Myanmar and Cambodia.

The business that is now AIA was first established in Shanghai over 90 years ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$172 billion as of 31 May 2015.

AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 29 million individual policies and over 16 million participating members of group insurance schemes.

AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).

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