BPI INVEST PHILIPPINE HIGH DIVIDEND EQUITY FUND
KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT As of January 29, 2021
FUND FACTS
Classification: Equity Fund Net Asset Value per Unit (NAVPU): Php 114.47
Launch Date: August 16, 2013 Total Fund NAV (Mn): Php 7,821.84
Minimum Investment: Php10,000.00 Dealing Day: Daily up to 2:30 PM
Additional Investment: Php1,000.00 Redemption Settlement: T+3 End-of-Day
Minimum Holding Period: None Early Redemption Charge: None
FEES*
Trustee Fees: 1.500% Custodianship Fees: 0.0146% External Auditor Fees: 0.0010% Other Fees: 0.00%
BPI Asset Management HSBC Isla Lipana None
* As a percentage of 2015 average *Monthly rate: billings received *Billings received in 2017 divided by the average daily
daily NAV for the quarter valued for November 2020 divided by the NAV.
at Php 8,265.58 Mn average daily NAV for the month
INVESTMENT OBJECTIVE AND STRATEGY
The Fund intends to achieve for its participants total return through a combination of current income and long-term capital
appreciation by investing in listed companies that have high dividend yields or have established a history of dividend payout s.
The Fund aims to provide returns in excess of the return of the Philippine Stock Exchange index (PSEi).
CLIENT SUITABILITY
A client profiling process shall 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 Invest Philippine High Dividend Equity Fund is suitable 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.
Equity Price Risk: Investors are exposed to adverse changes in the prices of high dividend yield stocks listed in
the Philippine Stock Exchange, which may be brought about by adverse stock market
conditions, unfavorable company earnings and valuations and/ or negative developments in
domestic and global political and economic conditions.
Liquidity Risk: Investors are exposed to the risk of loss due to the fund’s inability to convert equity holdings
to cash immediately 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.
Related Party Risk: Investors are exposed to actual or potential conflicts of interest in the handling of related party
transactions by the Trustee, specifically, time deposit placements with the Trustee’s own bank
and/ or its subsidiary, purchase of equity securities issued by related parties, as well as the
execution of trade transactions with related counterparties.
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 SHALL 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 may contact us at (632) 8580-AMTC (2682),
email us at [email protected] or visit our website, www.bpiassetmanagement.com.
FUND PERFORMANCE AND STATISTICS AS OF January 29, 2021
(Purely for reference purposes and is not a guarantee of future results)
NAVPU GRAPH NAVPu over the past 12 months
Highest 127.53
Lowest 89.86
STATISTICS
Portfolio Beta 0.99
Volatility, Past 1 Year (%) 3 26.51
Sharpe Ratio 4 -0.30
Information Ratio 5 0.49
Current Number of Holdings 31
* Benchmark is the Philippine Stock Exchange Index
1Returns are net of fees.
CUMULATIVE PERFORMANCE (%) ¹
2Since Inception
3Measures the degree to which the Fund fluctuates
1 mo 3 mos 6 mos 1YR 3YRS S.I
Fund -7.13 3.87 10.39 -6.40 -21.32 14.47 vis-à-vis its average return over a period of time.
Benchmark -7.38 4.56 11.54 -8.17 -24.55 1.33 4Used to characterize how well the return of a Fund
Benchmark (TR) -7.36 4.73 12.05 -6.39 -20.56 15.76 compensates the investor for the level of risk taken.
ANNUALIZED PERFORMANCE (%) ¹ The higher the number, the better.
5
Measures reward-to-risk efficiency of the portfolio
1YR 2YRS 3YRS 4YRS 5YRS S.I relative to the benchmark. The higher the number,
Fund -6.40 -7.70 -7.68 -1.62 -0.06 1.83 the higher the reward per unit of risk.
Benchmark -8.17 -9.13 -8.96 -2.21 -0.23 0.18 *Declaration of Trust is available upon request
Benchmark (TR) -6.39 -7.50 -7.39 -0.54 1.50 1.98 through branch of account.
CALENDAR YEAR PERFORMANCE (%) ¹
YTD 2020 2019 2018 2017 2016
Fund -7.13 -6.85 4.71 -11.76 23.69 -2.93 TOP TEN HOLDINGS
Benchmark -7.38 -8.64 4.68 -12.76 25.11 -1.60 Name %
Benchmark (TR) SM Investments Corporation 14.11
-7.36 -6.90 6.46 -11.41 27.15 0.19
SM Prime Holdings, Inc. 10.64
PORTFOLIO COMPOSITION
Ayala Land, Inc. 9.89
Allocation % of Fund
Equities 95.07 Ayala Corporation 6.75
Cash 0.10
5.23 BDO Unibank, Inc. 6.29
Time Deposits and Money Market
Receivables – Net of Liabilities -0.41 Bank of the Philippine Islands 5.74
Sector Holdings
JG Summit Holdings, Inc. 4.70
Holding Firms 33.10
Property 23.03 PLDT Inc. 4.43
Financials 18.00
Metropolitan Bank & Trust Co. 4.19
Industrials 10.17
Services 10.77 Time Deposit 4.08
Mining and Oil 0.00
RELATED PARTY TRANSACTIONS*
The Fund has transactions and outstanding investments including deposit, investments in the share/s of stock, and/or debt
issuances of the following companies related to the Bank of the Philippine Islands:
Ayala Corp. - Php 528.01 Mn , Ayala Land Inc. – Php 773.78 Mn, Bank of the Philippine Islands – Php 768.29 Mn,
Globe Telecom, Inc. - Php 185.34 Mn
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 Index (PSEi) was off to a roller-coaster start, climbing high as high as
7,400 intra-day towards mid-month before plummeting at the end to close at 6,612.62 or -7.40% month on month. Early
optimism over the COVID-19 vaccines that spurred the market has dissipated on expectations that the actual execution will
be delayed. This entails that the economic recovery will also be pushed back. Volumes rose on a month-on-month basis,
with the average daily turnover registering at US$230 million. This is owing to the spike in local retail activity seen in small
cap stocks. Foreign outflows continued, recording at US$273 million to begin the year.
Macro-economic news for the month include: 1) 4Q2020 GDP fell by 8.3% (behind consensus of 7.9%) owing to weak
domestic demand, and capital formation. 2) Inflation rose to 3.5% in December, within the BSP’s 2.9% to 3.7% range. The
increase was a result of higher food prices (vegetables, fruits and meats) due to supply constraints from typhoons. 3) The
country’s gross international reserves (GIR) climbed to US$109.8 billion in end-December or equivalent to 11.7 months’
worth of imports.
In terms of stock performance, the main advancers are as follows: FGEN (+5.86%), and LTG (+1.2%), while the biggest
detractors were AEV (-15.77%), JGS (-15.08%) and PGOLD (12.20%).
Fund Performance. The Fund registered a loss of 7.13% in January, outperforming the benchmark by 25 bps.
Fund Strategy. We look to stay invested in domestic equities given the low global interest rates. We will continue buying
on dips and adhere to large cap quality cyclicals.
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.
(d) 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.
(e) Bank deposits, BSP special deposit account or tradable debt instruments issued by the BSP.
(f) 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: 889-10000, or send an email at
[email protected] or write a letter addressed to BPI Asset Management and Trust Corporation -
Consumer Assistance Office, 7/F, BPI Buendia Center, Sen. Gil J. Puyat Avenue, Makati City 1209.
BPI AMTC as Trustee / Investment Manager is supervised by the Bangko Sentral ng Pilipinas (BSP) with telephone number
(632) 8708-7087 and e-mail address: [email protected].
