How to Read the Daily Reports of BPI AMTG October 2, 2012 Disclaimer The views expressed in this presentation by BPI Asset Management and Trust Group (AMTG) are strictly for information purposes only. This presentation does not endorse nor constitute an offer, recommendation, or a solicitation to buy or sell any product, security, or currency it referred to in this presentation. Before acting on any advice or recommendation in this presentation, a client should consider whether it is suitable for their particular circumstances and if necessary, seek professional advice. Information contained in this presentation is based on data that BPI AMTG considers reliable, but BPI AMTG does not represent that it is accurate or complete, and it should not be relied upon as such. Investment or participation in the BPI AMTG Funds are subject to risk and possible loss of principal, and is not insured by the Philippine Deposit Insurance Corporation (PDIC). Past performance is not indicative of future performance. Investment products are not bank deposits, nor obligations, nor are guaranteed, nor issued, nor insured by BPI. Losses, if any, shall be for the account and risk of the Trustor/Participant. The value of the investment can go up or down. The investment, upon redemption, may be worth more or worth much less than the original amount invested. The Morning View Frequency: Daily (10:00 AM – 10:30 AM) Purpose: • A rundown of overnight market and economic developments. Available daily, when market opens.Features fresh news clips, key figures and a end-of-day summary of various markets The Morning View – Local News Briefs Updates on: • Local Equity Market • Local Bond Market • Economic Developments • Corporate News • Dollar-Peso Rate The Morning View – US and Europe; Asia - Pacific Updates on: • US Equity Market • US Treasury Market • US & Europe Economic Developments • Euro-Dollar Rate Updates on: • Asia Pacific Equity Markets • Asia Pacific Economic Developments The Morning View – Key Indicators Date Stated Absolute change calculated from 7 days prior the date stated. Absolute change calculated from the end of the year to the date stated. 2037 Prices as of the date stated Absolute change calculated from a day prior the date stated. Absolute change calculated from the same day a month ago or the last banking day if that day falls on a nonbanking day (e.g. Aug. 17, 2012, Friday) to the date stated. The Morning View – Key Indicators Index of the local stock market and benchmark of the BPI equity funds as well as the equity portion of the balanced funds Index for global stocks of developed markets; covers over 6,000 securities in 24 Developed Markets countries, spanning from large to micro cap securities which can be segmented across sectors; indicative of activity and health of global stock markets Index for Asia Pacific equity markets (excluding Japan); captures large and mid cap representation across 4 of 5 Developed Markets countries and 8 Emerging Markets countries in the region; benchmark of the Odyssey Asia Pacific High Dividend Equity Fund Most closely watched US stock market indices: • FTSEurofirst 300 measures the performance of Europe's largest 300 companies by market capitalization • DJIA gauges US industrial sector performance; 30 industrial sector stocks • S&P 500 gauges the performance of large-cap American stocks; considered a bell-weather of the US economy; 500 large-cap stocks • Their performance tend to influence stock markets outside the US The Morning View – Key Indicators Benchmark of the ALFM Euro Bond Fund 2037 Local money market benchmark issues: • a.k.a. Treasury bills/T-bills • PDST-F refers to the calculated average of the best 60% of firm BID rates in the secondary market as of 11:16AM • 91-Day T-bill is the benchmark of the BPI and ALFM Peso-denominated bond funds Benchmark ROP issues: • indicates general activity in the ROP space; ROP2021 and ROP2037 are the most liquid securities • The 4-digit number refers to the year on which the security will mature US Treasury Yields: • indicates activity and sentiment in the UST space. • 3-mo. UST is the benchmark of the BPI Dollardenominated bond funds Benchmark gold prices: • The current price of gold Dollar-Peso exchange rate • Based on BAP Actual Traded Prices at the PDS Philippine Dealing System Benchmark oil prices: • Brent crude is the benchmark primarily used in Europe; • Nymex oil futures is the benchmark US contract; world's largest-volume futures contract trading on a physical commodity • WTI, Brent, and Dubai are crude oil benchmarks differentiating the place of production and the varieties and grades The Morning View – Asian Equity Markets Markets of interest in the Asian Region Index name Closing price as of the indicated date with DoD change in points & percent. The Morning View – Local Bond Market Summarizes closing yields and day-on-day changes (as of the previous banking day) for each benchmark bond issue available through PDEX. • As opposed to PDST-F rates (best bid rates), PDST-R2 are calculated from the weighted average yields of done transactions in the secondary market as of 4:15PM daily. The Morning View - Upcoming Economic Releases • Gives a preview of what local and US economic reports to expect in the coming days. Such reports tend to influence activity in the financial markets. • The impact of these reports on the markets depend on how actual results come close to/deviate from consensus forecasts. Investment Funds Monitor Frequency: Daily Purpose: • A summary of the latest fund prices and performance figures. • Shows how BPI Funds performed the previous banking day • Provides a summary of NAVPU/PS changes Investment Funds Monitor – Absolute Returns Date when the report is published Absolute returns calculated from the same day of the previous year or the last banking day if that day falls on a non-banking day (e.g. September 19, 2011, Monday), to the date stated. NAVPU/PS as of the date stated. Absolute returns calculated from the previous banking day to the date stated. Absolute returns calculated from the same day 3 years back or the last banking day if that day falls on a nonbanking day (e.g. September 18, 2009, Friday), to the date stated. Absolute returns calculated from the last banking day of the previous year to the date stated. Investment Funds Monitor – NAVPU Summary Features historical NAVPU/PS of each fund as well as: • Week-on-week (WoW), • Month-on-month (MoM), and • Year-on-year (YoY) changes/returns. The Daily Recap Frequency: Daily (5:30 PM – 6:30 PM) Purpose: • A snapshot of what happened during the day • Features highlights of the day’s activities in the local markets • Provides closing prices in the local equity, bond and the foreign exchange market The Daily Recap – News Briefs Updates on: • EOD Local Equity Market • EOD Local Bond Market • EOD Economic/Corporate Developments • EOD Dollar-Peso Rate The Daily Recap – PSEi Stats & Foreign Exchange Key stats for the day’s activities in the local equity market: • Previous: Closing price as of the previous banking day • High: Highest price during the day • Low: Lowest price during the day • Close: Closing price end-of-day • Change(pts): Change in price, points • Change (%): Change in price, percentage • Total Value: Total value traded for the day • Up: Number of stocks that closed higher for the day • Down: Number of stocks that closed lower for the day • Unchanged: Number of stocks whose price did not change for the day Previous close and end-of-day close (Indicative for EUR/USD) of key foreign exchange rates. The Daily Recap – PSEi Stats & Foreign Exchange • Top 5 stocks that had the most impact (leader/laggard) on the index. Leaders contribute to the PSEi level while Laggards deduct points. • Index points refer to the number of points added/deducted from the PSE Index. • Top 5 stocks in the PSE Index that gained/lost the most for the day. The Daily Recap – Local Bond Market Summarizes closing yields and day-on-day changes after markets close for each benchmark bond issue available through PDEX. This same portion is shown in the next day’s The Morning View. Glossary AC: All Country BAP: Banker’s Association of the Philippines DoD: day-on-day EOD: end-of-day FX: foreign exchange KLCI: Kuala Lumpur Composite Index KOSPI: Korean Composite Stock Price Indexes MoM: month-on-month MSCI: Morgan Stanley Capital International NAVPS: Net Asset Value Per Share NAVPU: Net Asset Value Per Unit Nymex: New York Mercantile Exchange NZX: New Zealand Exchange PDEX: Philippine Dealing & Exchange Corp. PDST-F: Calculated average of the best 60% of bids posted by designated market-making banks at 11:15am daily PDST-R2: Calculated weighted average yields of done transactions (at least Php 50Mn) from 9:00 am to 4:15 pm or the best firm bid of PDST market-making banks at 4:16 pm in the absence of done deals. PSEi: Philippine Stock Exchange Index ROP: foreign denominated debt issued by the Republic of the Philippines S&P/ASX: Australian Stock Exchange index by Standard & Poor‘s SE: Stock Exchange SENSEX: Bombay Exchange Sensitive Index SET: Stock Exchange of Thailand TWSE: Taiwan Stock Exchange UITF: Unit Investment Trust Fund YoY: year-on-year YTD: year-to-date