Email: TrustMarketingGroup@pnb.com.

ph
Website: www.pnb.com.ph
Tel Nos.: 526-3131 Locals 4335, 4574, 4527, 4587

PNB PESO FIXED INCOME FUND

KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT
February 28, 2019

FUND FACTS
Net Asset Value per Unit
Classification: Money Market Fund 1.019694
(NAVPU):
Launch Date: July 16, 2018 Total Fund NAV: Php 81.68 Million
9:00 to 12:00 NN of any
Minimum Investment: Php 10,000 Dealing Day:
banking day
Additional Investment: Php 10,000 Redemption Settlement: T+0
Minimum Holding Period: 5 banking days Early Redemption Charge: 50% of income earned
Trust Fee: 0.5% p.a. Valuation Marked-to-Market

FEES*
Trustee Fees: Taxation Fees: Other Fees: External Auditor Fees:
0.0389% 0.0594% 0.0051% 0.0005%
PNB Trust Banking Group Bureau of Internal Annual registration fee, Trust SGV and Co.
Revenue Officers Assoc. of the Phils.
Custodianship Fees: 0.0006% Deutsche Bank AG, Manila

*As a percentage of average daily NAV for the month valued at Php 80.85 Million.
INVESTMENT OBJECTIVE AND STRATEGY

The PNB Peso Fixed Income Fund is invested in a diversified portfolio of bank deposits and fixed income instruments
issued by the Philippine government and prime corporate entities with a portfolio weighted average duration of up to
one year.
The Fund aims to outperform its benchmark, which is 50% moving average of the Philippine 30-Day Special Savings
Rate General Average, net of taxes and 50% Bloomberg Philippine Sovereign Bond Index Money Market, Adjusted.

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 Declaration of Trust
/Plan Rules of the Fund, which may be obtained from the Trustee, before deciding to invest.
• The PNB Fixed Income Fund is suitable only for investors who:
- have moderate risk appetite
• Participants are recommended to stay invested in the fund for at least one (1) year.
KEY RISKS AND RISK MANAGEMENT
You should not invest in this Fund if you do not understand or are not comfortable with the accompanying risks.
• Liquidity Risk – The possibility for a Trustor to experience losses due to the Fund’s inability to sell or convert
assets into cash immediately or in instances where conversion to cash is possible but at a loss.
•Credit Risk – The possibility for a Trustor to experience losses in the event the borrower/issuer defaults on his
obligation or in the case of a counterparty, when it fails to deliver on the agreed trade.
• Reinvestment Risk – This is the risk associated with the possibility that the funds may not be invested at the
same rate as it was invested previously.
• Interest Rate/Price Risk – This is the possibility for a Trustor to experience losses due to changes in interest
rates or due to a decline in the price of a security or a portfolio.

THE UIT FUND IS NOT A DEPOSIT AND IS NOT INSURED BY THE PHILIPPINE DEPOSIT INSURANCE
CORPORATION (PDIC)
RETURNS CANNOT BE GUARANTEED AND HISTORICAL NAVPU IS FOR ILLUSTRATION OF NAVPU
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 TRUSTEE IS NOT LIABLE FOR ANY LOSS UNLESS UPON WILLFUL DEFAULT, BAD FAITH OR
GROSS NEGLIGENCE
 FUND PERFORMANCE AND STATISTICS AS OF FEBRUARY 28, 2019
Historical performance, when presented, is purely for reference purposes and is not a guarantee of future results.
NAVPU Graph
NAVPU as of July 2018
Highest 1.019694
Lowest 0.999979

Statistics

Weighted Ave. Duration 0.19

Volatility, Past 1 Month* 0.06%
Sharpe Ratio** 1.67
Information Ratio*** 1.03

Cumulative Performance (%) *Volatility measures the degree to which the

Fund fluctuates vis-à-vis its average return over
Period 1mo 3mos 6mos 1yr 3yrs S.I** a period of time.
Fund 0.32% 1.10% 1.63% N/A N/A 1.97% **Sharpe Ratio is used to characterize how well
the return of a Fund compensates the investor
Benchmark 0.22% 0.92% 1.40% N/A N/A 1.39% for the level of risk taken. The higher the
*The benchmark used is composed of an equal mix (50% each) of BPI MM and number, the better.
PSAVAVE from Oct. 30, 2018 to Nov. 30, 2018; BVAL MM and PSAVAVE from July 16,
2018 to Oct. 29, 2018. The use of BPI MM is temporary until a new benchmark is ***Information Ratio measures reward-to-risk
approved. efficiency of the portfolio relative to the
benchmark. The higher the number, the higher
**Since Inception
the reward per unit of risk.
Top 10 Holdings (%)
Portfolio Composition
% of
Company Name Portfolio
Treasury Bills 4.69%
PS Bank Time Deposit 3.72%
United Coconut Planters Bank Time Deposit 3.60%
Treasury Bills 3.46%
Treasury Bills 2.94%
Robinsons Bank Time Deposit 2.41%
China Bank Time Deposit 2.40%
Treasury Bills 2.35%
PNB Savings Bank Time Deposit 2.23%
Philippine Business Bank Time Deposit 2.14%

MARKET OUTLOOK
LOCAL BOND MARKET
Philippine inflation continued to decelerate, the Consumer Price Index for January was reported at 4.40% from
December’s 5.10% and slight below market’s consensus of 4.50%. This could be attributed to lower prices of food and
beverage and that oil prices remained around 30% below its peak in 2018. Other positive news flows include OFW
remittances continued to rise and the stabilization of the Php. Investors in the Philippine capital market had plenty to
cheer about with the onset of 2019, as bond yields fell while the PSEi rose by 3.20% in February, making the PHL one
of the best performing markets in the region last month.
The Philippine bond market continued its good start for the year as strong demand for both the short-term Treasury
Bills (T-bills) and longer-dated Treasury bonds (T-bonds) were evident in the BTR’s auctions. Risk-on appetite led the
secondary market trading volume to a 4-year high resulting in a downward shift in the yield curve. Spreads between the
ROPs and US debt papers narrowed as investors increased its position given the sharp deceleration in PHL inflation.
Last week of the month, the Bureau of Treasury announced it will issue new 5Y RTBs and raised a total of Php113.8
billion from the rate-setting auction at a coupon of 6.25% following “strong market demand.”
Total tenders for the government’s first offering of RTBs in 2019 closed at P236 billion, as investors took advantage of
the favorable rate. The RTBs are available to the public between Feb. 26 and March 8 at minimum denominations of
P5,000. Proceeds from the issuance will go to health services, educational programs, and public infrastructure.
 FUND PERFORMANCE AND STATISTICS AS OF FEBRUARY 28, 2019
Yields will take their cue from domestic inflation data and on possible developments regarding the BSP
governor’s successor. With inflation expected with is downward trek, yields are also expected to drift on the
back of this.

By: Dennis Anthony L. Elayda

Head, Investment Management Division

OTHER DISCLOSURES

Prospective Investments
The following names are among the Fund’s approved investment outlets where the Trustee intends to invest depending
on its availability or other market driven circumstances:

Accredited Banks
Banco De Oro Unibank, Inc. Philippine National Bank ANZ Bank
Bank of Commerce PNB Savings Bank Chinatrust Commercial Bank Corp.
Bank of the Philippine Islands Philippine Savings Bank Citigroup Inc.
China Banking Corp. Rizal Commercial Banking Corp. Deutsche Bank
China Bank Savings Robinsons Bank Corp. HSBC Bank
Development Bank of the Phil. Security Bank Corp. ING Bank
East West Bank Sterling Bank of Asia JP Morgan
Land Bank of the Philippines Union Bank of the Philippines Maybank
Metropolitan Bank and Trust Co. United Coconut Planters Bank Standard Chartered Bank
Philippine Bank of UCPB Savings Bank
Communications

Related Party Transactions

The Fund has deposits with the Bank Proper and outstanding investments with the following companies related to
Philippine National Bank (PNB):

Company Name Amount

Philippine National Bank 3, 921, 519.34
PNB Savings Bank 5, 758, 217.15

Investments in the said outlets were approved by the PNB Board of Directors. Likewise, all related party transactions
are conducted on an arm's length and best execution basis and within established limits.