SECURITY BANK CORPORATION

SB Peso Equity Fund

Key Information and Investment Disclosure Statement
Month Ended 29 January 2016
FUND FACTS
Classification:
Launch Date:
Minimum Investment:
Minimum Additional Investment:
Bloomberg Ticker:

Peso Equity Fund

1 February 2010
Php 10,000
Php 5,000

Net Asset Value Per Unit:

Total Fund NAV:
Dealing Period
Redemption Settlement:

1.819362
Php 3,998.35 million
9:00 am 1:30 pm any banking day
Four (4) banking days after the
redemption date

SBPSEQF PM Equity

FEES*
Trustee Fee

Custodianship

External Auditor Fee

0.1273%

0.0023%

0.0001%

Security Bank Corporation

HSBC

SGV & Co.

*As a percentage of average daily NAV for the quarter valued at Php 3,973.26 million
INVESTMENT OBJECTIVE AND STRATEGY
SB Peso Equity Fund aims to achieve long term growth by diversifying mainly into select equity investments listed in the
Philippine stock exchange, and other marketable instruments. The Fund aims to surpass its benchmark (gross of fees)
which is 90% Philippine Stock Exchange Index (price only return) + 10% O/N Special Savings Account (net of
withholding tax).

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.
SB Peso Equity Fund is suitable only for investors who:

Have an aggressive risk tolerance.

Seek potentially higher returns through investments on Philippine Stock Market and who can tolerate high price
volatilities.

Have the possibility to be exposed to capital losses given the volatility nature of the local equities markets

Have an investment horizon of one to three (1-3) years.

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.
Market | Price Risk The possibility for an investor to experience losses due to changes in market prices of equities or
bonds.
Liquidity Risk The possibility for an investor to experience losses due to inability to sell or convert assets into cash
immediately or in instances where conversion to cash is possible but at a loss.

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.

For more information, visit our website at www.securitybank.com or call (02) 888 7378 email us at trustmarketing@securitybank.com

SB FUNDS | SB PESO EQUITY FUND

FUND PERFORMANCE AND STATISTICS AS OF 29 JANUARY 2016

For reference purposes only and not a guarantee of future returns.

NAVPU Graph

NAVPU over the past 12 months

Highest
Lowest

3.1000

2.744735
1.734070

Statistics

2.9000
2.7000

*Volatility, Past Year

**Sharpe Ratio
*** Information Ratio

2.5000
2.3000

SB Peso
Equity Fund
Benchmark

2.1000
1.9000
1.7000
29-Jan-15

29-Apr-15

29-Jul-15

29-Oct-15

29-Jan-16

20.36
(1.71)
(2.13)

*Volatility measures the degree to which the fund fluctuates vis--vis its
average return over a period of time.
**Sharpe Ratio is used to characterize how well the return of a Fund
compensates the investor for the level of risk taken. The higher the number,
the better.
***Information Ratio measures reward-to-risk efficiency of the portfolio
relative to the benchmark. The higher the number, the higher the reward per
unit of risk.

Top 10 Holdings
Cumulative Performance
Period
Fund
Benchmark

1Mo

3Mo

6Mo

1Y

3Y

-8.52%

-16.39%

-24.15%

-33.49%

-4.98%

-3.39%

-5.59%

-10.23%

-11.65%

7.06%

Portfolio Composition
Industrial

28.6%

Services

24.7%

Property

Equities
81.6%

Holdings Firms
Cash &
Cash
Equivalents
18.4%

Mining and Oil

Financials

14.0%

Cebu Air Inc.

Ayala Land, Inc.
Puregold Price Club
DNL Industries
LT Group, Inc.
PLDT Co.
Robinson's Retail
Energy Development Corporation
Manila Electric Co.
SM Prime Holdings Inc.

6.42%
6.28%
5.24%
5.20%
5.12%
4.80%
4.49%
4.05%
3.97%
3.96%

10.3%
3.5%
0.4%

OUTLOOK AND STRATEGY.

Equity markets started the year on a sour note with the PSEi dropping 3.8% to end the month at 6,687.62. Market was
volatile during the first week fuelled by developments in China causing a general risk-off sentiment. However, betterthan-expected GDP numbers, recovering oil prices and passive buying helped cushion the outflow. The PSEi registered
slightly higher average daily turnover of $121m (vs $108.5m in December), and foreign funds continued to remain net
sellers by $42.6m for the month. The property sector (-13.1% MTD) was sold down as investors took profits after it
outperformed in 2015, among the top foreign names sold included Megaworld (MEG, -16.0% MTD) and Ayala Land (ALI,
-8.9% MTD). Consumer sector (-8.4% MTD) saw a turnaround with names like URC recovering (+3.8% MTD) while JFC
(-6.3% MTD), MAXS (-31.4% MTD) and EMP (-18.0% MTD) all sank for the month. For Banks, foreign investors bought
SECB (-0.1% MTD) after the M&A deal with MUFG was disclosed and BPI (+4.5% MTD), while MBT (-11.8% MTD) was
sold off. Telcos sector (+4.2% MTD) stayed positive for the month as investors flocked to defensive names. PLDT (TEL,
+7.8% MTD) outperformed and Globe (GLO, +0.6% MTD) stayed flat. The market bounced convincingly from its January
21 low of 6,084.28 to 6,701.36 in just a span of 7 trading days. However, given the weak global outlook and a lot of
global indices in bear territory, we believe that the index could retest the January lows. The PSEi has an initial support at
6,300 and a strong support at 6,000. Hence, we remain defensive and will be looking to accumulate as the market drops.
If we get a clear winner for the 2016 elections and corporates deliver sound earnings, we believe that the index can close
above 7,000 by yearend. GLO and URC started the 4th Quarter earnings season registering decent topline growth but
recognizing larger than expected expenses. Large cap names we continue to overweight include LTG and MPI because
the former has been benefiting from the introduction of the tax stamp program, while the later has a number of positive
catalysts including the possible listing of its hospital unit and a favorable decision on Maynilads arbitration case. We also
like stocks such as CEB and DNL as both will benefit from the 2016 elections and higher discretionary spending due to
lower oil prices. Meanwhile, we remain underweight gaming and financials given the competitive environment.
INVESTMENT POLICY / PROSPECTIVE INVESTMENTS
The Fund may invest in exchange-listed equities and fixed income securities, deposits in the Trustees bank or in other
banks, securities issued or guaranteed by the Philippine Government or the BSP and tradable securities issued by any
supranational entity. Subject to BSP guidelines and the Trustee's Trust Committee approval, the Fund may also avail of
financial derivative instruments solely for the purpose of hedging risk exposures, as well as invest in other tradable
investment outlets/categories as may be deemed suitable for the Fund.

RELATED TRANSACTIONS
The Fund has investments with Security Bank Corporation, in the amount of: Php 469 million in deposits. Investments in
the said outlets were approved by the Trust Committee. Likewise, all related party transactions are conducted on an
arms length and best execution basis and within established limits.

For more information, visit our website at www.securitybank.com or call (02) 888 7378 email us at trustmarketing@securitybank.com

SB FUNDS | SB PESO EQUITY FUND