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Short Name
NAV per
unit
1-Week
Change
1-Month
Change
YTD
Change
YoY
Change
3-Year
Change
5-Year
Change
CAGR
Since
Inception*
PESO FUNDS
PMMF
1,469.39
0.02%
0.11%
0.93%
1.07%
6.36%
13.83%
4.09%
PBF
1,833.35
0.01%
0.45%
1.84%
2.05%
13.87%
30.50%
6.51%
BDO GS Fund
GS
185.07
-0.26%
0.23%
0.57%
-0.24%
16.19%
36.68%
6.68%
PFIF
1,904.26
-0.16%
0.61%
1.20%
1.02%
16.36%
37.35%
6.99%
PBAL
3,997.20
-0.87%
0.43%
16.07%
9.66%
43.35%
106.27%
12.98%
EQUITY
440.36
-0.36%
0.86%
22.01%
15.41%
70.20%
156.02%
16.85%
SDF
121.87
-1.25%
1.00%
23.52%
21.97%
#N/A
#N/A
20.43%
FEF
116.42
-1.02%
0.31%
18.66%
16.57%
#N/A
#N/A
15.36%
DMMF
134.20
0.03%
0.12%
1.09%
1.25%
5.05%
9.07%
3.13%
DBF
156.99
0.13%
0.54%
2.51%
2.49%
6.84%
15.87%
4.84%
1.74
0.07%
0.72%
3.82%
3.61%
9.86%
24.32%
6.01%
2.36%
DOLLAR FUNDS
BDO Dollar Money Market Fund
BDO Dollar Bond Fund
BDO Medium Term Dollar Bond Fund
MTDBF
INSTITUTIONAL FUNDS
BDO Institutional Cash Reserve Fund
ICRF
107.08
0.03%
0.15%
1.33%
1.53%
#N/A
#N/A
MFST
151.84
-0.07%
0.21%
1.76%
1.93%
13.26%
28.73%
4.81%
MFMT
141.40
-0.06%
0.44%
3.24%
2.66%
20.19%
#N/A
7.95%
IFIF
1,874.24
-0.46%
0.54%
4.35%
1.16%
27.65%
61.86%
8.52%
IEF
4,770.94
-0.29%
1.08%
22.63%
16.00%
73.03%
158.51%
18.07%
*Compounded Annual Growth Rate (CAGR) since inception allows for UITF comparison regardless of inception dates.
Short-term
Placements
Government
Securities
Corporate
Securities
Weighted
Average
Duration
Weighted
Average
Yield
Equities
100.00%
31.57%
32.15%
25.90%
98.34%
53.60%
35.56%
100.00%
42.11%
34.92%
25.57%
20.94%
3.29%
10.06%
12.56%
3.77%
0.00%
37.68%
67.85%
43.97%
0.00%
33.07%
51.82%
0.00%
40.85%
33.99%
74.43%
2.89%
0.00%
0.00%
0.00%
0.00%
0.00%
30.74%
0.00%
30.14%
1.66%
0.00%
12.61%
0.00%
17.03%
31.09%
0.00%
2.11%
0.00%
0.00%
0.00%
0.00%
0.10
2.81
3.44
3.61
0.02
2.65
4.61
0.07
1.12
3.01
5.65
N/A
N/A
N/A
N/A
N/A
1.29%
2.10%
1.52%
2.19%
1.20%
1.75%
1.88%
1.79%
1.92%
2.90%
3.18%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
74.06%
96.71%
89.94%
87.44%
96.23%
IMPORTANT EVENTS
Major Economic Data for the Month
USA
Philippines
US Stock Market
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5.00%
4.00%
3.00%
11-Nov-14
4-Nov-14
2.00%
1.00%
ROP 37
ROP 34
ROP 32
ROP 30
ROP 26
ROP 24
ROP 21
ROP 20
ROP 19
ROP 17
ROP 16
ROP 15
0.00%
The US held its mid-term elections this week and President Obamas
current unpopularity among Americans benefited the Republican Party
which now controls both Congress and Senate. This will be crucial for the
remaining two years of the Obama administration to be able to pass
policies and reforms, especially with the recurring debt ceiling issue at
stake again next year. The US jobs data release was also a closelywatched space this week. Despite coming in shy of expectations, the
214,000 (vs consensus of 235,000) non-farm payrolls added in October
marked the ninth consecutive month that the US economy added at least
200,000 workers to its active workforce, the longest stretch since 1994.
Consequently, the unemployment rate inched lower to 5.8% from 5.9% in
September, bringing it closer to the 5.5% norm. The notion of improving
labor market conditions in the US may thus support an earlier Fed rate
hike which is mostly expected to happen by middle of next year.
However, inflation remains low (1.4% in September) and well below the
Feds long-term target of 2.0% while other major central banks such as
the European Central Bank, the Bank of Japan, and the Peoples Bank of
China are still on monetary easing mode. The latter may justify the US
Fed to delay the first rate hike and thus mitigate the anticipated rise
in ROP yields which currently remain hostage to US Treasury yield
movement.
PESO BOND MARKET
Lower food and fuel prices eased inflation to 4.3% in October from
Septembers 4.4%, broadly in-line with market expectations. This,
plus the deceleration of money supply or M3 growth to 16.2% in
September from 18.5% the previous month, gives the BSP more
leeway to hold off any further monetary tightening measures until at
least the first quarter of 2015 during which the issue will already be
preparing ahead of possible Fed rate hikes. However, should
external factors such as the improving labor market conditions
in the US renew sentiment/talks of an earlier Fed rate hike, they
may result in a gradual upward movement in peso long-tenor
bond yields. Still, we take the view that rates especially of these
long tenors should hold in their sideways trend for the near term.
9.00%
8.00%
7.00%
6.00%
5.00%
11-Nov-14
4-Nov-14
4.00%
3.00%
2.00%
1.00%
25YR
20YR
10YR
7YR
5YR
4YR
3YR
2YR
1YR
6MO
3MO
1MO
0.00%
STOCK MARKET
PSE Index
1/1/2013
2/1/2013
3/1/2013
4/1/2013
5/1/2013
6/1/2013
7/1/2013
8/1/2013
9/1/2013
10/1/2013
11/1/2013
12/1/2013
1/1/2014
2/1/2014
3/1/2014
4/1/2014
5/1/2014
6/1/2014
7/1/2014
8/1/2014
9/1/2014
10/1/2014
11/1/2014
7,750
7,500
7,250
7,000
6,750
6,500
6,250
6,000
5,750
5,500
5,250
5,000
4,750
4,500
4,250
4,000
3,750
3,500
Global equity markets benefited from good corporate earnings results in the
US this week, reflective of a sustained recovery in the US and improved
export prospects from the global economies. Aside from the strengthening
US dollar, US equity markets reached new highs this week as majority of
companies reported better-than-expected earnings for the third quarter.
Similarly, European equities followed the uptrend from the earnings results
but renewed concerns on the overall health of the Eurozone economy put a
downbeat tone later during the week. On the domestic front, local
companies reported generally in-line earnings for the quarter but with a few
surprises. Most notable was that of PLDT that reported lower earnings due
to stiffer competition and indicated a downward revision of its earnings
guidance moving forward, thus bringing into question the sustainability of its
high dividend payout. There was also disappointment with the upcoming
MSCI rebalancing as anticipation of additional weightings for Philippine
names such as GT Capital and Bloomberry Resorts did not materialize.
Both of these developments greatly dampened investor sentiment and
weighed down the index. We thus expect the market to continue
consolidating around the 7,200 level due to the lack of any major catalyst.
However, we still expect a year-end rally towards at least 7,300 as
positioning for next year recommences in the remaining weeks of 2014
given that the Philippine market has one of the highest expected
earnings growths in the region in 2015 at 15%.
DISCLAIMER: The views expressed in this Update by BDO-Trust are strictly for information purposes only. The BDO UITFs are not deposit accounts but trust products and are not guaranteed nor insured by BDO, its affiliates or subsidiaries. Investment or participation
in the BDO UITFs are subject to risk and possible losses of principal. The value of the investments can go up or down and, upon redemption, may be worth more or worth less than the original amount invested. BDO-Trust is not liable for such losses which are for the
sole account of the participant/trustor. Participations in the BDO UITFs do not guarantee a rate of return and are not insured by the Philippine Deposit Insurance Corporation (PDIC). Thus it is important that the investor always considers if these Funds are aligned with
his financial goals, investment horizon and risk appetite. The UITFs are charged for custodianship fees, financial services providers' fees, and third-party audit fees whose sum total does not exceed 0.10% of the fund volumes. For more information, kindly call the
undersigned members of the BDO Trust Research and Investments Group.
Anthony E. C. De Dios
Anna Patricia C. San Diego
dedios.anthony@bdo.com.ph
sandiego.patricia@bdo.com.ph
840-7000 Ext.33136
840-7000 Ext.31347