PHILIPPINE STOCK INDEX FUND

KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT

As of October 30, 2017
FUND FACTS
Classification: Index Tracker Fund Net Asset Value per Share (NAVPS): Php 925.87
Launch Date: March 14, 2003 Total Fund NAV (Mn) : Php 12,879.28
Minimum Investment: Php 5,000.001 Dealing Day: Daily up to 2:30 PM
Additional Investment: Php 1,000.001 Redemption Settlement: T+3 5:00 PM
Minimum Holding Period: 90 calendar days Early Redemption Charge: 1.00%
FEES*
Management/Advisory Fee: 1.50% Custodianship Fees: 0.0204% External Auditor Fees: 0.0033%
BPI Investment Management, Inc2 HSBC Isla Lipana
* As a percentage of average daily NAV for the *Billings received in 2016 divided *Billings received in 2015 divided
quarter valued at Php12,509.40 Million by the average daily NAV by the average daily NAV
INVESTMENT OBJECTIVE AND STRATEGY
The Fund aims to track the performance of the Philippine Stock Exchange Composite Index (PSEi). The Fund shall
substantially invest in stocks comprising the PSEi using the same weights as in the 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 Philippine Stock Index Fund is suitable only 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 some of the accompanying risks.

Investors are exposed to adverse changes in the prices of stocks comprising the
Philippine Stock Exchange Composite Index, which nay be brought about by adverse
Equity Price Risk:
stock market conditions, unfavorable company earnings and valuations and/ or negative
developments in domestic and global political and economic conditions.

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
Liquidity Risk:
a highly disadvantageous price due to limited buyers/ sellers in the market, low trading
volumes or market disruptions, among other reasons/ factors.

Investors are exposed to the risk of not being able to achieve a level of return that
Index Tracking Risk: matches the index being tracked by the fund due primarily to operating and fund
management expenses.

• 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 580-2344 / 580-2345 / 580-2349,

email us at bpi_investment@bpi.com.ph or visit our website, www.alfmmutualfunds.com.
 FUND PERFORMANCE AND STATISTICS AS OF OCTOBER 30, 2017

(Purely for reference purposes and is not a guarantee of future results)

NAVPS GRAPH NAVPS over the past 12 months

940 Highest 941.09

Fund Benchmark*
Lowest 727.75

780
STATISTICS

Portfolio Beta 1.00

620 5
Volatility, Past 1 Year (%) 14.00

Current Number of Holdings 33

460
Tracking Error5 0.45
Oct-13 Oct-14 Oct-15 Oct-16 Oct-17
*Benchmark is Philippine Stock Exchange Index
3 1Contribution rounded down/redemption rounded off
CUMULATIVE PERFORMANCE (%)
to the nearest whole share. Mutual Funds do not
1 mo 3 mos 6 mos 1 YR 3 YRS S.I.6
issue fractional shares.
Fund 2.24 4.14 8.94 12.67 14.73 657.05 2A wholly-owned subsidiary of BPI
Benchmark 2.37 4.33 9.19 12.97 15.93 643.43
3Returns are net of fees.
PSEi (Total Return)7 2.39 4.68 10.00 14.82 22.19 1024.16
4Measures the degree to which the Fund fluctuates
ANNUALIZED PERFORMANCE (%) 3
vis-à-vis its average return over a period of time.
1 YR 2 YRS 3 YRS 4 YRS 5 YRS S.I.6 5Measure of deviation between the Fund’s return
Fund 12.67 7.82 4.69 5.99 9.10 14.94 and benchmark returns. A lower number means the
Benchmark 12.97 8.28 5.05 6.16 9.05 14.80 Fund’s return is closely aligned with the benchmark.
14.82 10.15 6.91 8.17 11.20 18.11 6Since inception.
PSEi (Total Return)7
CALENDAR YEAR PERFORMANCE (%) 3 7Measures the degree of the PSEi based on price
YTD 2016 2015 2014 2013 2012 appreciation and dividends issued by constituent
stocks.
Fund 22.08 -2.19 -3.85 23.10 2.05 34.74
8Includes accrued income, investment securities
Benchmark 22.29 -1.60 -3.85 22.76 1.33 32.95
purchased, accrued expenses, etc.
PSEi (Total Return)7 24.11 0.19 -2.02 25.45 3.67 36.45

PORTFOLIO COMPOSITION *The Prospectus is available upon request through

branch of account.
Allocation % of Fund
Equities 99.86
Cash, Time Deposits, and Other
0.14
Receivables – Net of Liabilities 8
Money Market Funds 0.00
Sector Holdings (Equity Portion) TOP HOLDINGS
Holding Firms 39.61
Name %
Industrials 10.70
SM Investments Corp 12.68
Services 11.37
Property 19.33 SM Prime Holdings, Inc. 8.56
Financials 17.62
Ayala Land, Inc. 8.29
Mining and Oil 1.23
OUTLOOK AND STRATEGY
Market Review. The Philippine Stock Exchange Index (PSEi) surged for another month, rising by 2.37% to 8,365.26. The
uptrend was mainly driven by large-cap names with local market participants outpacing foreigners. Turnover, however, was
muted averaging Php6.78 billion daily or 9% lower compared to Php7.525 billion registered in the prior month. Net foreign
position was a small US$1.9 million buying that was already bloated by the Ayala Corp. (AC) transaction. AC, through its
controlling shareholder Mermac, the holding company of the Zobel Family, sold 7.4 million of its shares to a foreign
institutional investor. Meanwhile, 3rd Quarter Earnings Season has already commenced.

Top gainers for the month were SM (+8.15%), SMPH (+7.40%) and AC (+6.29%) while detractors include SCC (-8.99%),
FGEN (-7.08%), and PCOR (-7.06%).

Key Economic Developments:

·Inflation for the month of September surged to 3.4% YoY, beating expectations of 3.2%. This was also higher than the prior
month’s figure of 3.1% but was still within the BSP’s range of 2.8% to 3.6%. The uptick was caused by the increase in Food
and beverage index which climbed 3.6%.

·Gross international reserves marginally declined to US$81.35 billion in September on the back of a decline in BSP’s
foreign investments and gold holdings.

·OFW remittances continued to climb, up by 7.8% YoY to US$2.5bn in August, pushing the 8M2017 figure to US$18.6
billion. Remittances on a land-based basis were driven by Middle-East which grew 19%.

Fund Performance. The fund returned 2.24% for the month, bringing year-to-date return to 22.08%; underperforming the
benchmark’s return for the month by 13 bps and by 21 bps year-to-date.

Fund Strategy. The fund will continue to track the Philippine Stock Exchange Index (PSEi).