ALFM MONEY MARKET FUND

KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT

As of August 28, 2015
FUND FACTS
Classification:
Launch Date:
Minimum Investment:
Additional Investment:
Minimum Holding Period:
FEES*

Money Market Fund

March 1, 2010
Php5,000.001
Php1,000.001
30 calendar days

Net Asset Value per Share (NAVPS):

Total Fund NAV (Mn) :
Dealing Day:
Redemption Settlement:
Early Redemption Charge:

Php 113.91
Php 2,003.34
Daily up to 12:00NN
T+0 End-of Day
1.00%

Management/Advisory Fee: 0.75% Custodianship Fees: 0.0005% External Auditor Fees: 0.0277% Other Fees: 0.00%
BPI Investment Management, Inc2/
HSBC
Isla Lipana
None
BPI Asset Management
* As a percentage of average daily
*Billings received in 2014 divided by the average daily NAV
NAV for the quarter valued at
Php1,966.10 Million
INVESTMENT OBJECTIVE AND STRATEGY
The Fund aims to achieve preservation of capital and stable income by investing in a diversified portfolio of Philippine Peso
denominated short-term fixed income and money market instruments. The Fund aims to outperform its benchmark, the
HSBC Philippines Money Market 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 Prospectus of the Fund, which may
be obtained from the Fund Manager, before deciding to invest.
The ALFM Money Market Fund is suitable only for investors who:
Are at least classified as conservative based on their risk profile
Have an investment horizon of up to one (1) year.
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.
Interest Rate
Risk:

The fund invests in short term domestic fixed income securities, exposing investors to the risk of loss arising
from a rise in interest rates, which generally causes fixed income security prices to decline. Factors/ events
that may lead to a rise in interest rates include adverse market conditions, issuer-specific factors/ events and/
or negative developments in domestic political and economic conditions.
Liquidity Risk: Investors are exposed to the risk of loss due to the funds inability to convert security 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.
Credit/Default Investors are exposed to the risk of loss due to the failure of the borrower/ debt issuer to make timely interest
Risk:
and/ or principal payments on its deposit liabilities, loans, bonds or other debt instruments due to a
deterioration in the borrowers/ issuers financial condition or external factors and events that may affect its
ability to repay financial obligations such as negative developments in domestic political and economic
conditions.
In accordance with the provisions in the Prospectus, the Fund implements a risk management policy that applies the principles
of Value-at-Risk (VAR). The Fund may also use financial derivatives to hedge the portfolio against market and credit risks.

THE MUTUAL FUND IS NOT A DEPOSIT AND IS NOT INSURED BY THE PHILIPPINE DEPOSIT INSURANCE CORP.
(PDIC).
RETURNS CANNOT BE GUARANTEED AND HISTORICAL NAVPS IS FOR ILLUSTRATION OF NAVPS 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 FUND MANAGER IS NOT LIABLE FOR ANY LOSS UNLESS UPON WILLFUL DEFAULT, BAD FAITH OR GROSS
NEGLIGENCE.
For more information, you can contact us at 845-5033 / 845-5034 / 816-9038,
email us at bpi_investment@bpi.com.ph or visit our website, www.alfmmutualfunds.com.

FUND PERFORMANCE AND STATISTICS AS OF AUGUST 28, 2015

(Purely for reference purposes and is not a guarantee of future results)
NAVPS over the past 12 months

NAVPS GRAPH
115
111

Fund
Benchmark

Highest

113.91

Lowest

112.39

108

STATISTICS

104

Weighted Ave Duration (Yrs)

100
Aug-10

Volatility, Past 1 Year (%)

Nov-11

Feb-13

CUMULATIVE PERFORMANCE (%)

May-14

Aug-15

S.I. 4

1 mo

3 mos

6 mos

1 YR

3 YRS

Fund

0.08

0.30

0.60

1.35

5.04

13.75

Benchmark

0.34

0.52

0.86

1.95

3.90

9.34

ANNUALIZED PERFORMANCE (%)

1 YR

2 YRS

3 YRS

4 YRS

5 YRS

S.I. 4

Fund

1.35

1.11

1.65

2.05

2.33

2.37

Benchmark

1.95

1.39

1.28

1.42

1.48

1.64

2014

2013

2012

2011

0.85

1.04

1.98

3.01

3.31

1.70
PORTFOLIO COMPOSITION
Allocation

0.85

0.62

2.11

1.39

YTD
Fund
Benchmark

Government
Corporates
Cash and Other Receivables

% of Fund
38.40
2.57
59.03

Maturity Profile
Cash and less than 1 year
Between 1 and 3 years
Between 3 and 5 years
Between 5 and 7 years
Between 7 and 10 years
More than 10 years
Portfolio Weightings

2.57

Philippine Sovereign Bonds

38.40

Asset Valuation

Amortized Cost

0.13

Sharpe Ratio 6

-1.28

Information Ratio 7

-0.27

Portfolio Weighted Yield to Maturity

(%)

1.94

Current Number of Holdings

21
Baa3/BBB

1Contribution

rounded down/redemption rounded off

to the nearest whole share. Mutual Funds do not
issue fractional shares.
2A wholly-owned subsidiary of BPI
3Returns are net of fees.
4Since Inception.
5Measures the degree to which the Fund fluctuates
vis--vis its average return over a period of time.
6Used to characterize how well the return of a Fund
compensates the investor for the level of risk taken.
The higher the number, the better.
7Measures reward-to-risk efficiency of the portfolio
relative to the benchmark. The higher the number,
the higher the reward per unit of risk.
*The Prospectus is available upon request through
branch of account.

98.17
1.83 TOP TEN HOLDINGS
0.00 Name
0.00 Fixed Rate Treasury Note
0.00
Metrobank Card Corp.
0.00
Time Deposit

Philippine Corporate Bonds

Marked-to-market

Average Credit Rating (Moodys/S&P)

CALENDAR YEAR PERFORMANCE(%)

0.25

Maturity

1/27/2016

15.63

3/15/2016

13.98
12.48

Fixed Rate Treasury Note

1/12/2016

10.19

Fixed Rate Treasury Note

11/25/2015

6.39

Time Deposit

6.24

Time Deposit

5.24

5.22 Time Deposit

5.24

94.78 Money Market UITF

Time Deposit

5.22
3.24

OUTLOOK AND STRATEGY

Market Review. The HSBC Philippine Local Currency Bond Index increased by 1.13% in August. Average bond yields
decreased by 19 basis points, mostly driven by the decrease short term tenors. Twenty year bonds outperformed for the
month declining by 35 basis points. Peso-denominated government bonds continued to see lackluster demand with daily
volumes averaging only PHP14.8Bn.
Inflation surprised the market easing to 0.8% in July. The inflation print brings the average figure for the year to 1.9%,
breaching the low end of the BSP target. Monetary Board members have adjusted inflation forecasts for 2015 from 2.1% to
1.8%.
The Bureau of Treasury announced a bond exchange wherein a minimum of PHP 50Bn will be issued in 10 and 25-year
bonds. Holders of eligible outstanding government securities may opt to swap bonds to the new 10 or 25 year bonds.
Market players will likely focus on the exchange in the near term.

Fund Performance. The Fund gained 0.08% in August, missing the benchmark by 26 basis points. It underperforms the
benchmark on a year-to-date basis by 85 basis points with a return of 0.85%.
Fund Strategy. The fund will maintain its duration of less than 1 and will continue to diversify into corporate notes and
bonds for yield enhancement. Market liquidity coupled with well-anchored inflationary expectations may continue to keep
short term rates relatively low.