In he previous post we took a look at index funds: what they are and their pros and cons. There are a number of index funds available to Filipino investors. Let's start with BPI's offerings.
First up is a bond index fund: the ABF Philippines Bond Index Fund. This is a bit different from the examples in the last post in that it tracks a bond index instead of an equity index. It tracks the iBoxx Philippines Index. Here's the key information as of the time of writing:
ABF Philippines Bond Index Fund
Fund Type: UITF
Index Tracked: iBoxx Philippines Index
Minimum Initial Investment: P10000
Minimum Transaction: P1000
Minimum Holding Period: None
Annual Fee: ~ 0.349%
Tracking Error (from June 2012): ~ 0.2%
Explanatory Memo
Performance Report for June 2014
The fees and tracking error are quite low, which is a good thing.
Next is an equity index fund:
BPI Philippine Equity Index Fund
Fund Type: UITF
Index Tracked: Philippine Stock Exchange Index
Minimum Initial Investment: P10000
Minimum Transaction: P1000
Minimum Holding Period: None
Annual Fee: ~ 1.5%
Tracking Error (from June 2012): ~ 2.27%
Explanatory Memo
Performance Report for June 2014
The fee isn't as low as what I'd expect of an index fund. The tracking error is much higher than that of the bond index fund above, but I'm not sure if it's too high or okay.
Next is another equity index fund, the ALFM Philippine Stock Index Fund. This differs from the other equity fund in that it is a mutual fund managed by BPI Investment Management Inc., a subsidiary of BPI. As such it is regulated under the SEC instead of the BSP.
ALFM Philippine Stock Index Fund
Fund Type: MF
Index Tracked: Philippine Stock Exchange Index
Minimum Initial Investment: P5000
Minimum Transaction: P1000
Minimum Holding Period: 180 days
Annual Fee: ~ 1.5%
Early Redemption Fee: 1% of the redemption amount
Tracking Error (from June 2012): ~ 0.88%
Prospectus
Performance Report for June 2014
I'm not a big fan of minimum holding periods and early exit fees but 180 days is short compared to some mutual funds. Invest only if you have an emergency fund already setup. The annual fee is comparable to the other equity index fund above, but the tracking error is much better.
Lastly there's the Philippine Dollar Bond Index fund:
Philippine Dollar Bond Index Fund
Fund Type: UITF
Index Tracked: JP Morgan Asia Credit Index – Philippines
Minimum Initial Investment: $500
Minimum Transaction: $200
Minimum Holding Period: None
Annual Fee: ~ 0.267%
Tracking Error (3-year): ~ 1.06%
Explanatory Memo
Performance Report for June 2014
The investment and transaction amounts required are pretty high. The fees are quite low and the tracking error isn't that bad.
That's all for BPI. Next on the index fund list is Philequity and First Metro.
Showing posts with label bpi. Show all posts
Showing posts with label bpi. Show all posts
Sunday, July 20, 2014
Friday, May 9, 2014
BPI Regular Subscription Plan
If you've been reading this blog or other resources about personal finance you're probably familiar with cost averaging. If not, you can read my initial post about it here and another post with a detailed example here.
One of the challenges of cost-averaging is finding the time and effort to do it regularly. (It's a bit like blogging that way.) Fortunately several banks and financial institutions have introduced mechanisms to make cost-averaging easier.
One of these is BPI's Regular Subscription Plan. It's a program that allows investors to set an amount and frequency for periodic investments. Of course this assumes that 1) you have a BPI bank account and 2) you've already invested in at least one of their funds.
Basically, you tell BPI how much and how often you want to invest and the fund you want to invest in then 'forget' about it. The amount should meet the minimum required, which varies from fund to fund. The frequency may be monthly or quarterly. You also specify when the plan should start and end. For example, you can set your plan to invest P2500 quarterly in their Short-Term fund from June 12, 2014 to June 12, 2024.
You can enroll in a Regular Subscription Plan through BPI branches or online on http://www.bpiexpressonline.com/. If you invest or plan to invest in BPI's funds I think this is a great way to do cost-averaging. You can learn more by reading the offical FAQs.
One of the challenges of cost-averaging is finding the time and effort to do it regularly. (It's a bit like blogging that way.) Fortunately several banks and financial institutions have introduced mechanisms to make cost-averaging easier.
One of these is BPI's Regular Subscription Plan. It's a program that allows investors to set an amount and frequency for periodic investments. Of course this assumes that 1) you have a BPI bank account and 2) you've already invested in at least one of their funds.
Basically, you tell BPI how much and how often you want to invest and the fund you want to invest in then 'forget' about it. The amount should meet the minimum required, which varies from fund to fund. The frequency may be monthly or quarterly. You also specify when the plan should start and end. For example, you can set your plan to invest P2500 quarterly in their Short-Term fund from June 12, 2014 to June 12, 2024.
You can enroll in a Regular Subscription Plan through BPI branches or online on http://www.bpiexpressonline.com/. If you invest or plan to invest in BPI's funds I think this is a great way to do cost-averaging. You can learn more by reading the offical FAQs.
Thursday, March 13, 2014
New investment: BPI Short Term Fund
New post, hooray!
After a couple of years I was finally able to invest again. This time I decided to try BPIs UITF offerings. I needed a fund where I could park money relatively safely. I say relatively since it isn't a bank deposit and therefore isn't insured by the PDIC.
I chose the BPI Short Term Fund. According to the description
What I like about this fund:
After a couple of years I was finally able to invest again. This time I decided to try BPIs UITF offerings. I needed a fund where I could park money relatively safely. I say relatively since it isn't a bank deposit and therefore isn't insured by the PDIC.
I chose the BPI Short Term Fund. According to the description
It is suitable for investors with a moderately conservative risk profile and those with short-term liquidity requirements.which I interpret to mean "it's good for money you can't afford to lose (money you might need in the near future)". It also means the gains are going to be made very slowly. Some people would say that the combination of BPIs conservatism and a conservative fund means that it's going to be very very slow. That's okay though, this fund is for building slowly. I plan on investing in more aggressive funds in the near future (I hope).
What I like about this fund:
- Low initial participation: P10,000
- Low additional participation: P1,000
- No minimum holding period
- Low fee: 0.5% per annum
Saturday, June 25, 2011
UITF Roundup 2: BPI
Here's the second installment of the UITF roundup. Today's featured bank is Bank of the Philippine Islands.
BPI offers a Regular Subscription Plan that allows investors to make regular purchases of units or shares. Purchases may be made on a monthly or a quarterly basis. This makes cost averaging a lot more convenient. Read more.
*Some of the funds may charge minimal management fees, custodianship fees, and external audit fees aside from the trust fees. The fees listed below under the "Annual Fee" column are the trust fees. Be sure to read the funds' Explanatory Memo and Latest Fund Performance report (links provided below the fund name).
Contact Numbers, Wealth Management Division: 845-5295, 816-9092
Website: BPI Asset Management Products and Services
Roundup 1: BDO
BPI offers a Regular Subscription Plan that allows investors to make regular purchases of units or shares. Purchases may be made on a monthly or a quarterly basis. This makes cost averaging a lot more convenient. Read more.
*Some of the funds may charge minimal management fees, custodianship fees, and external audit fees aside from the trust fees. The fees listed below under the "Annual Fee" column are the trust fees. Be sure to read the funds' Explanatory Memo and Latest Fund Performance report (links provided below the fund name).
Fund Type
Minimum Investment/ Subsequent Investment
Holding Period
Early Exit Fee
Annual Fee*
Short Term Fund (Money Market)
P10,000/
P1,000
7 days
0.25%
0.75% p.a.
Explanatory Memo
May 2011 Performance Report
Premium Bond Fund
P10,000/
P1,000
90 days
0.25%
1.5% p.a.
Explanatory Memo
May 2011 Performance Report
ABF Philippines
Bond Index Fund
P10,000/
P1,000
90 days
1%
0.08% p.a.
Explanatory Memo
May 2011 Performance Report
Balanced Fund
P10,000/
P1,000
90 days
0.50%
1.5% p.a.
Explanatory Memo
May 2011 Performance Report
Equity Fund
P10,000/
P1,000
90 days
0.50%
1.5% p.a.
Explanatory Memo
May 2011 Performance Report
International
Fund Plus
$500/
$200
30 days
0.25%
0.75% p.a.
Explanatory Memo
May 2011 Performance Report
Global Philippine Fund
$500/
$200
30 days
0.25%
1% p.a.
Explanatory Memo
May 2011 Performance Report
Philippine Dollar Bond Index Fund
$500/
$200
90 days
0.25%
0.25% p.a.
Explanatory Memo
May 2011 Performance Report
Global Equity Fund
$500/
$200
90 days
1%
1.5% p.a.
Explanatory Memo
May 2011 Performance Report
Contact Numbers, Wealth Management Division: 845-5295, 816-9092
Website: BPI Asset Management Products and Services
Roundup 1: BDO
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