Investment Objective

The Fund aims to achieve investment returns that closely track the total return of the iBoxx Philippines index, before fees and expenses, by investing in a diversified portfolio of peso-denominated sovereign, quasi-sovereign, and supranational bonds.

NAVPU Graph
180 170 160 150 140 1YR 8.22 8.74 3YRS 27.55 30.60 5YRS 44.58 54.40 S.I.2 71.34 85.02 130 120 110 100 3YRS 8.45 9.31 4YRS 7.24 8.44 5YRS 7.65 9.08 S.I.2 8.85 10.17 Apr-05 Jun-08 Aug-11

Figures as of 8/31/2011 Cumulative Performance (%)

Fund Benchmark3 1 mo 1.73 1.77

Annualized Performance (%)

Fund Benchmark3 1YR 8.22 8.74 2YRS 8.64 9.15

Allocation
Portfolio Composition: Government 98.52%, Cash and Receivables 1.48%

Calendar Year Performance (%)

Fund Benchmark3
1Returns 2Since 3The

YTD 4.08 4.40

2010 11.24 11.73

2009 7.37 8.38

2008 (0.27) 2.58

2007 5.22 6.73

2006 19.01 20.69

Top Ten Holdings

Security Fixed Rate Treasury Notes 7.000% Fixed Rate Treasury Notes 6.250% Fixed Rate Treasury Notes 8.750% Fixed Rate Treasury Notes 5.250% Fixed Rate Treasury Notes 9.125% Fixed Rate Treasury Notes 7.000% Fixed Rate Treasury Notes 7.875% Fixed Rate Treasury Notes 8.375% Fixed Rate Treasury Notes 5.875% Fixed Rate Treasury Notes 7.750% Maturity 1/27/2016 1/27/2014 3/3/2013 1/07/2013 9/4/2016 3/31/2017 2/19/2019 5/22/2015 12/16/2020 8/23/2017 % of Fund 17.27% 13.00% 9.24% 7.90% 6.66% 5.78% 4.91% 4.37% 2.82% 2.51%

are net of fees. Past performance is not an indication of future returns. inception as an Investment Management Arrangement (IMA) on April 26, 2005 Fund tracks the iBoxx ABF Philippines 1-10 years Index beginning January 2010.

Key Figures and Statistics

Net Asset Value per Unit (NAVPU) Total Fund NAV (Bln) Par Value Portfolio Weighted Yield to Maturity Risk Characteristics Duration (years)4 Volatility (%)5 Tracking Error (1-10 Year Index)6 Tracking Error (36-Month Rolling)6 General Information Launch Date Fund Structure Fund Classification Fund Currency Minimum Initial Investment7 Minimum Transaction7 Minimum Holding Period Early Redemption Fee Trust Fee8 Management Fee License Fee External Audit Fees9 Special Expense10 Valuation Methodology Fund Manager External Auditor Available Through Trustee and Third-Party Custodian Dealing PHP PHP PHP %, net 171.34 3.64 122.31 3.0434 Fund 3.55 3.19 0.10% 0.89%

Benchmark 3.53 3.17

Any prospective investment shall be limited to the type of investments described in the Declaration of Trust for the Fund.

Interest Rate Exposure

Deposits and Less than 3 years 34.8% 34.7% 32.0% 31.7% 17.6% 18.0% 15.5% 15.4% Benchmark ABF PBIF

Bloomberg Code: ABFPH PM Fund Fact Sheet - August 31, 2011 Visit us at www.bpiassetmanagement.com

April 21, 2006 Unit Investment Trust Fund Index Tracker Bond Fund Philippine Peso PHP 10,000.00 PHP 1,000.00 90 calendar days 1.00% of the NAVPU 0.08% per annum / 0.02% per quarter 0.25% per annum 0.01% per annum 0.02% PHP2,000 per annum Marked-to-Market Bank of the Philippine Islands Isla Lipana & Co. Bank of the Philippine Islands Branches HSBC Daily up to 12 noon

3 to 5 years

5 to 7 years 7 to 10 years Risk Disclosure

The Fund is suitable for investors with at least a moderately aggressive risk profile. An index tracker bond fund is suitable for investors who take medium- to long-term views and want exposure to Philippine bonds. As a marked-to-market UITF, the Funds yield, net asset value, and total return may fall as well as rise as a result of interest rate movements and changes in the credit quality of the investments. On redemption of units, an investor may receive an amount less than the original amount of the investment. Liquidity risk also needs to be taken into account.
4Duration

measures the sensitivity of NAVPU to interest rate movements. As interest rates rise, bond prices fall. The higher the duration, the more NAVPU will fluctuate in relation to changes in interest rates. 5Volatility measures the fluctuations in NAVPU. The higher the number, the higher the potential gain or loss. 6Tracking error is the measure of deviation between the Funds returns and the benchmark returns. A lower number means the Funds return is closely aligned with the benchmark. 7Contribution rounded down/ redemption rounded off to the nearest whole unit. 8Trust fees paid for the quarter as a percentage of average daily NAV for the quarter. 9 External Audit fees as a percentage of end-year 2008 NAV. 10For publication expense.

Managers Report
Market Review. August was a good month for bonds as yields decreased by an average of 85bps. The decrease was greatest on short-term yields which dropped 164bps, while medium-term and long-term yields fell 58bps and 34bps, respectively. The decline in yields was supported by the strong fiscal position of the government, continued benign inflationary expectations, and persistent local bond market demand. The Philippines budget deficit for July registered at PHP26.5 Bn, bringing the seven month deficit to PHP43.7Bn. Government revenue growth continued to show improvements as it jumped 13% while the government made headway in reigning in expenditures which decreased by 10%. Inflation for August came out at a lower-than-expected 4.7%, a marked improvement from last months 5.1% (2006 base year). The Philippine economy grew at 3.4% year-onyear versus estimates of 4.1% in the second quarter. The slower-than-expected growth together with mounting concerns over the US and Euro-zones growth prospects may provide incentive to the Monetary Board to maintain an accommodative monetary policy stance. Demand for local bonds was apparent in the government security auctions in August. The FXTN auctions were more than 4 times oversubscribed for both the 10-year and the 7year auctions. The Treasury bills auctions for the month were also more than 4 times oversubscribed, enabling the government to exercise its greenshoe option for the 91-day Tbill. Fund Performance. The Fund continued to track the returns and duration of the iBoxx ABF Philippines 1-10 years in August. The Fund gained 1.73% for the month, slightly below its benchmark index. The portfolio ended the duration slightly above that of the benchmark. Fund Strategy. The Benchmark Index saw the removal of three securities for the month of August, accounting for 2.5%.The Fund will likewise rebalance its portfolio. Duration and average annual yield may be expected to increase slightly.

ABF Philippines Bond Index Fund is a Unit Investment Trust Fund (UITF) and not a bank deposit product. It is not guaranteed by BPI nor by the Philippine Deposit Insurance Corporation (PDIC). As such, units of participation of the investor in the UITF, when redeemed, may be worth more or worth less than his/her initial investment/contributions. Due to the nature of the investments, yield and potential yields cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility of the securities held by the UITF, even if invested in government securities, is for the account of the investor. Historical performance, when presented, is purely for reference purposes and is not a guarantee of future results. The Trustee is not liable for losses, unless upon willful default, bad faith or gross negligence. For the purpose of lodging, clearing, settlement, and delivery of securities in the Fund, the Trustee is authorized to avail of the services of third party institutions such as but not limited to custodians which the Trustee may change or replace without prior notice to or approval from the investors. The Trustee will not be responsible for any loss or damage suffered by the Fund as a result of the third parties willful default, gross negligence, or evident bad faith. Investors are advised to read the Declaration of Trust for the Fund, which may be obtained from the office of the Trustee, before deciding to invest. For inquiries, please call: (632) 845-5080 , (632) 845-5087 or (632) 816-9053, email bpi_trust@bpi.com.ph or visit www.bpiassetmanagement.com.