![Page 1: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/1.jpg)
DR. VICENTE K. FABELLA
Treasurer
![Page 2: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/2.jpg)
Fiscal Year May 1, 2014 to April 30, 2015
In review
![Page 3: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/3.jpg)
Macro-fundamentals remain strong
More investment credit rating upgrades (S&P, Moody’s)
Fastest-growing economy in EM Asia this year and next - Fitch
PHL seen outpacing peers till 2016 – Standard & Poor’s (S&P)
Found most resilient emerging market - Center for Global
Development in US
Lead Southeast Asian growth into 2016- IMF
Robust investment market
successful IPOs such as SSI, CNPF, PSPC & X
Php153.5Bn corporate bond issuance
![Page 4: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/4.jpg)
Happenings abroad
May 2014 - Ukraine tension
June 2014 - Iraq crisis pushed global oil prices at high levels
June 2014 - Anxiety on US Federal Reserve’s rate hike
October 2104 - End of US Fed tapering
April 2015- Greece debt woes
Local events
Truck ban that led to port congestion
Government underspending, delayed PPP projects
El Niño phenomenon
Strong typhoons damaging agriculture and shutting down
market trading -- Glenda & Ruby (int’l name Hagupit)
![Page 5: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/5.jpg)
6,000.00
6,500.00
7,000.00
7,500.00
8,000.00
8,500.00
May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15
-PHL found most
resilient EM
-Moody’s ups PHL
forecast
- S&P raises
Phl outlook
due to 6.4%
2QGDP
Delay in US interest
rate hike to happen
1Q15
The local equity market at a glance… (FY May 2014-April 2015)
![Page 6: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/6.jpg)
PERAA’s growth drivers (FY May 2014 - April 2015)
PERAA changed asset focus, considered new investments into
the asset allocation
Real Estate
Global Equity
Global Fixed Income
20%
9%
41%
3%
8% 6%
2%
11%
16%
7%
44%
7%
2% 2% 2%
21%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Domestic EQ Global EQ Domestic FI ROPs Global FI Real Estate MPL Cash
Comparative Asset Allocation
Apr-15 Apr-14
![Page 7: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/7.jpg)
Investors favored developed market and country-specific
allocation instead of the entire EM region
Increase US$ exposure
tap services of foreign fund managers (FFM)
![Page 8: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/8.jpg)
(600,000)
(500,000)
(400,000)
(300,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
Interest
Income
Forex Gains,
net
Realized
gains, net
Unrealized
Gains
FY - 2015 FY- 2014
Return On Investment (ROI)
FY 2014 1.06% ROI
vs
FY 2015 5.52% ROI
What pulled the fund up?
Steady flow of interest
income
Consistent trading gains
Favorable valuations
![Page 9: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/9.jpg)
Fund Performance
April 2015
April 2014
Assets P6.52 Bn P6.29 Bn
Members’ Equity P5.89 Bn P5.66 Bn
Investment Earnings
Net Unrealized Gain (Loss) on AFS Inv.
Net Investment Earnings
P317.63 Mn
43.43Mn
P 361.06 Mn
P394.96 Mn
(496.38) Mn
P(101.42) Mn
Total PIs 1,843 1,827
Total Member-Employees 72,070 71,885
ROI 5.52% 1.06%
![Page 10: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/10.jpg)
Investment Portfolio
As of April 2015
24%
2%
20%
9%
26%
6%
2% 11%
Peso Gov't. Debt Securities
Foreign Gov't. Debt Securities
Peso Corporate Debt Securities
Dollar Corporate Debt Securities
Equity
Real Estate
MPL
Cash and Cash Equivalents
![Page 11: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/11.jpg)
PERAA vs OTHER FUNDS
![Page 12: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/12.jpg)
MANAGING INVESTMENT STRATEGY
PRESERVATION OF CAPITAL
GROWTH
Savings Account
Time Deposits
Fixed Income
Equity
Alternative investments
![Page 13: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/13.jpg)
EQUITY FUND vs PERAA
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
ALFMGrowth
Fund, Inc.
PhilamStrategicGrowth
Fund, Inc.
PhilequityDividend
Yield Fund.,Inc.
PhilippineStock IndexFund Corp.
PSEi PERAA
Apr 2015 Sep 2015
![Page 14: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/14.jpg)
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
ALFM PesoBond Fund,
Inc.
Cocolife FixedIncome Fund,
Inc.
Philam BondFund, Inc.
PrudentialifeFixed Income
Fund, Inc.
PERAA
Apr 2015 Sep 2015
FIXED INCOME FUND vs PERAA
![Page 15: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/15.jpg)
BALANCED FUND vs PERAA
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
PAMI HorizonFund, Inc.
Philam Fund, Inc. Sun Life ofCanada
ProsperityBalanced Fund,
Inc.
PERAA
Apr 2015 Sep 2015
![Page 16: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/16.jpg)
Fiscal Year May 1, 2015-
April 30, 2016
Looking ahead
![Page 17: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/17.jpg)
6,000
6,500
7,000
7,500
8,000
-PHL found most
resilient EM
-Moody’s ups PHL
forecast
- S&P raises
Phl outlook
due to 6.4%
2QGDP
Delay in US interest
rate hike to happen
on 1Q15
-Chinese stocks sell-off
-Debt woes in Greece
Yuan devaluation
Where is the market’s next direction…is the
Philippines immune?
PSEi levels May 2014 to September 2015
![Page 18: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/18.jpg)
While the PHL market is not isolated
from global slowdown, PERAA remained
prudent and vigilant
(0.1)
(0.1)
(0.0)
(0.0)
0.0
0.0
0.0
0.1
0.1
PSEi PERAA
![Page 19: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/19.jpg)
Fund Performance
September 2015
Assets P6.38Bn
Members’ Equity P5.79Bn
Investment Earnings
Net Unrealized Gain (Loss) on AFS Inv.
Net Investment Earnings
P139.72Mn (187.61Mn) P(47.89Mn)
Total PIs 1,930
Total Member-Employees 72,291
ROI -2.68%
![Page 20: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/20.jpg)
Investment Portfolio
As of September 2015
23%
6%
17%
9%
25%
6%
2% 12%
Peso Gov't. Debt Securities
Foreign Gov't. Debt Securities
Peso Corporate Debt Securities
Dollar Corporate Debt Securities
Equity
Real Estate
MPL
Cash & Cash Equivalent
![Page 21: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/21.jpg)
Challenges ahead US Federal Reserve interest rate hike
China’s slowing economy
Yuan devaluation
Geopolitical crisis
Slowing PHL GDP and inflation
El Niño phenomenon
Traffic
Credibility of 2016 Presidential election
![Page 22: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/22.jpg)
Mitigating Risk
Strategically favor safe assets such as cash & bonds
Reinvest in bonds when yields start picking up
Gradually accumulate and raise exposure to stocks
for cost-averaging tactic for both global & domestic
investments
Favor $US for currency play
Campaign for MPL
![Page 23: DR. VICENTE K. FABELLA Treasurerperaa.org/multipage_uploads/1443/22673/2015_PERAA_FUND_PERFORMANCE...Macro-fundamentals remain strong More investment credit rating upgrades (S&P, Moody’s)](https://reader031.vdocuments.site/reader031/viewer/2022030420/5aa7772b7f8b9ac5648c222d/html5/thumbnails/23.jpg)
Thank you!!!