COL Easy Investment Program

Learn to build wealth the easy way in the Stock Market

CitisecOnline.com who we are

CitisecOnline is the leading and fastestgrowing online stockbrokerage firm in the Philippine Stock Exchange handling about 20% of its number of trades. CitisecOnline is the largest capitalized stockbroker with over half a Billion Pesos in resources, COL is publicly listed in Philippine Stock Exchange & is also member of the Hong Kong Exchange CitisecOnline is committed to empowering the Filipino investor to achieve financial independence by providing access, information and education

WHY invest?
Investing is the most effective way to build your personal wealth and reach your financial goals!

Retirement Children/ Education Cost of Living/ Housing

WHY invest?
Safeguard capital against INFLATION!
Purchasing power of Php100 stashed away in 1970* (not invested) I N F L A T I O N

Year

1970 1980 1990

100 59.87 35.85

Inflation measures the rise in the cost of goods; it is the rate of which the purchasing power of money falls by if not invested

2000
2009
* Assuming a 5% annual Inflation

21.46
12.85

Invest with Long Term Compounding

Compounding is the act of reinvesting your profit to further increase your profits over time. Companies can compound their growth by reinvesting their profits into the business.

Why invest in the stock market?

The Stock Market is the place where you can invest in publicly owned or PSE listed companies. You invest into a company to participate in its ability to grow and earn profits

You make money through:

Price Appreciation Earning Dividends

Stock Market Superior Track Record

History has proven that investing in quality stocks can provide greater returns than most instruments; giving a good run over inflation

HOW MUCH can I invest?*

Conservative Aggressive

Method 1: Up to 20% of Savings may be invested into the Stock Market Method 2: Compute 100-Age = Max % of Savings that can be invested
Ex. If I am 35 years old then I can invest up to 65% of my savings into the Stock Market

*These are only suggested percentages based on investors capacity to take on risk; as a rule of thumb, younger investors can take more risk given that they may have a longer period to withstand volatility

Stock Market Investing Simplified: PESO COST AVERAGING!

Peso Cost Averaging

Peso Cost Averaging is a personal wealth-building strategy that involves investing a fixed amount of money at regular intervals over a long period Designed to reduce market risk by stretching out the purchase of stocks over time, buying more when prices are low and buying less when it is high, effectively keeping your average cost low

Month 1
Buy Php5,000 worth of stock ABC at market price

Month 2
Buy Php5,000 worth of stock ABC at market price

Month 3
Buy Php5,000 worth of stock ABC at market price

3
Ave Cost
1 2 3 4 5 6 Month 7 8 9

Peso Cost Averaging

Sample Cost Averaging Activity
Date of Stock Purchase Amount of Stock Purchase (Php) Price per Share # of Shares* Ave Cost per share

1-Jun-08 1-Jul-08 1-Aug-08 1-Sep-08 1-Oct-08 1-Nov-08 1-Dec-08 1-Jan-09 1-Feb-09 1-Mar-09 1-Apr-09 1-May-09

5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

10 11.75 11.5 11 10 9 7.5 8 9 9.1 9.5 10

500 426 435 455 500 556 667 625 556 549 526 500

10.00 10.80 11.03 11.02 10.80 10.45 9.90 9.61 9.54 9.49 9.49 9.53

Your average cost remains low

*You buy less shares when prices are high and more shares when it is low (subject to board lot regulations)

Peso Cost Averaging

Lest assume you invest Php5,000 a month over a year in two market scenarios

Total Investment Market Value Cost Per Share

= P60,000 = P80,650 = P20.83

(+34%)

Total Investment Market Value Cost Per Share

= P60,000 = P75,281 = P12.75

(+25%)

Peso Cost Averaging Sample

2-yr Cost Averaging plan to BUY Php15,000 of Ayala Land every quarter

10.00
1,000 SHARES

6.60
2,000 SHARES Total Shares: 3,000 Ave. Cost: 7.73

6.50
2,000 SHARES Total Shares: 5,000 Ave. Cost: 7.24

6.40
2,000 SHARES Total Shares: 7,000 Ave. Cost: 7.00

9.40
1,000 SHARES Total Shares: 8,000 Ave. Cost: 7.30

10.25
1,400 SHARES

10.50
1,400 SHARES

Total Shares: 9,400 Total Shares: 10,800 8.10 Ave. Cost: 7.74 Ave. Cost:

2 Year Result: TOTAL INVESTMENT: Php 87,450 TOTAL PORTFOLIO VALUE: Php 148,500 (+70%)

Buying on PSE Minimum Lots

PSE BOARD LOT SYSTEM - Minimum amount of shares that can be bought determined by a stocks market price - To buy more, you can only buy along the board lot increments (i.e. a board lot of 1,000 would allow you to by 1000, 2000, 3000 etc, but not 1500 shares as the 500 is called an odd lot)
PSE BOARD LOT TABLE PRICE RANGE
0.001 to 0.005 0.0055 to 0.01 0.011 to 0.05 0.0525 to 0.10 0.105 to 0.25 0.26 to 1.00 1.02 to 2.50 2.55 to 5.00

BOARD LOT
1,000,000 1,000,000 100,000 100,000 10,000 10,000 1,000 1,000 1,000 100 100 10 10 10

Ayala Lands 2-yr Price Range Php5.00 P14.00 Board Lot Size:
1.02-10.00 = 1,000 shares 10.25-100.00 = 100 shares

5.10 to 10.00 10.25 to 25.00 25.50 to 100.00 101.00 to 250.00 252.50 to 500.00 505.00 and upward

Cost Averaging
A viable long term plan
Stock/ Indicator Effective Annual Yield Time Frame

Retire with an Extra 10 Million! Invest Monthly # Years Php5,000 21 16.9% 1,260,000

TEL BPI AC JFC Inflation

18.88% 16.92% 11.16% 10.7% 5.7%

18 yrs 18 yrs 18 yrs 14 yrs 18 yrs

Return Rate Total Investment (P) Will result in a Future Value (P) Investment Gain

Php10M+ 740%

Share price history from 1990 to 2007

The COL Easy Investment Program

Introducing COLs EIP

The COL Easy Investment Program is the latest service from CitisecOnline which makes it easier for our customers to apply the method of peso-cost-averaging.

Features
Premium Stock List have access to our research and premium growth stock recommendations EIP Portfolio have access to your EIP positions anytime and track their performance Schedule Calendar plan out your purchases over time by building a continuing calendar of orders that

will prompt you through Email reminders

Allow us to Recommend some Stocks

We filter looking for good stocks by looking for GEMSS

Our Premium Growth Stocks:

Growing industry Earnings visibility/predictability Management credibility Superior products or services Strong balance sheet

Ayala Land Inc (ALI) Bank of Phil Islands (BPI) Jollibee (JFC) PLDT (TEL) SM Prime Holdings (SMPH) Manila Water (MWC)

COL EIP: Investing made easy

Benefits

No need to "time" the market Helps you save with only a minimal amount You can manage your risk over time (as against lump sum investing) You partner with dynamic corporations that compound their expansion over time Your investments are kept liquid and can be turned back into cash quickly if you need it

Getting Started with the EIP

Log in to our website at www.citiseconline.com and access the EIP functions under the Trade/Portfolio Tab

EIP Menu

EIP Sub Menu

Click to activate the EIP Sub Menu

Getting Started with the EIP

Add EIP order

Use the Add EIP Order function to enter a trade order schedule once the details are set then the scheduler will always alert you two days ahead of a scheduled trade order

COLs Stock Picks EIP Order Scheduler

1)Choose you stock 2)Cash Value (amount to be invested) 3)Period (weekly, monthly, quarterly, semi-annual) 4)Start & End Date 5)Click Submit to enter schedule

Or choose your own

Getting Started with the EIP

View EIP Order

You can review your scheduled orders under the View EIP Orders function

Cancel / Change

Your scheduled order details

Your next buy schedule is automatically determined based on your starting date and period entered

Getting Started with the EIP

You can review your scheduled orders under the View EIP Orders function

Cxl/Chg

Cancel Option:

Change Option:
User can only change the Cash Value, Period and End Date

Enter your password for confirmation

Getting Started with the EIP

Two days before an EIP order will be activated, an e-mail reminder will be sent to you to remind you about the upcoming order

Reminder

You have mail!

7000

Getting Started with the EIP

Day Advisor

On the day the EIP order becomes active, a message is displayed to the user on the web site reminding him/her of the EIP order

AC

7,000

The reminder will state the EIP order details and will give the user the option to enter the EIP order immediately or to cancel the entry of the EIP order. If the user takes no action (buy or cancel), the EIP order will not be processed.

Click to activate the buy order entry function

Click to bypass the scheduled order for the interval

Getting Started with the EIP

EIP Order Entry

If the EIP order BUY NOW is clicked on, the order entry window is activated showing the EIP option already chosen along with the pre-calculated board lot and best asked price
*Note: If an EIP order is set off while the market is in pre-open, open, or run-off status, the regular order entry window is activated. If set off while the market is closed, the off-hours or ATO order entry is activated. An EIP order entered using the ATO order entry facility will need the manual entry of volume and price. All EIP orders are still subject to matching (it may not be automatically filled)

EIP Option*

Values are automatically filled based on EIP Data but can be modified by user

Getting Started with the EIP

The user can track the performance of the EIP records through the EIP Portfolio* page

EIP Portfolio

AC

Quarterly

7,000

8/6/2008

11/7/2008

20

301.17

305

76.60

No of EIP shares *Note: Your EIP Portfolio shows that part of your regular portfolio that has been purchased for the EIP

Average Buying Price

Current Price

Your Gain/Loss

Getting Started with the EIP

The regular Portfolio page* will now have an added field to display the # of EIP shares

Portfolio

305.0000

301.1650

20

20

20

76.60 6,100.00 76.60

1.28% 6,100.00

1.28%

21,988.53

Total Shares *Note: The user can sell their EIP shares anytime by using the sell order box and clicking on the EIP term button; an order to sell your regular portfolio may flow over to the EIP portfolio if your order exceeds those bought in the regular portfolio

No of EIP shares

Getting Started with our EIP

1

Open an Account Fill up the application form Provide 2 copies of valid ID Provide copy of billing statement Fund account: COL EIP - P5,000

Open an Account

4 steps

Schedule and follow your purchases over time

3

Decide on your investment amount and frequency

Choose dynamic companies to invest in

THANK YOU!
To learn more about COLs Easy Investment Program, visit our website at www.citiseconline.com or watch our EIP walkthrough video at http://www.citiseconline.com.ph/NewEIP/EIPVideo.asp For inquiries: Call our customer hotline at 6-333-777 or email at helpdesk@citiseconline.com Also attend our free Investing in the Stock Market Today introductory seminar held weekly