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ROBINSONS BANK BALANCED FUND

KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT


As of June 30, 2016 (Q2 2016)
FUND FACTS
Classification
Launch Date
Minimum Investment

Peso Balanced UITF


March 28, 2008
PHP 50,000.00

NAVPU
Total Fund NAV
Dealing Day

Additional Investment

PHP 10,000.00

Redemption Settlement

Minimum Holding Period

90 Calendar Days

Early Redemption Charge


Withdrawal Before Day 90

135.040771
PHP 12.0-Mn
09:00 AM 11:00 AM
Banking Day
09:00 AM 11:00 AM
Next Banking Day

0.50%
of
Redemption
Amount or PHP 500.00,
Whichever is Higher
RBank-TIG trustee fee at 1.50% per annum based on daily NAV, Deutsche Bank security
custody fee at 0.02% per annum based on face value of securities under custody; external
audit fee based on the daily accrual of the previous years billing

Fees

INVESTMENT OBJECTIVE & STRATEGY


The RBank Peso Balanced Fund is a peso-denominated unit investment trust fund (UITF) that is invested in both fixedincome securities and equities, and is an investment alternative for clients looking for better returns than traditional bank
deposits over a medium-term investment horizon. Clients should be willing to take the attendant risks inherent in mediumterm tradable fixed income investments and listed equities. The Funds performance is benchmarked against 50% PSEi
and 50% average 91 day TBill rate, net of tax.
CLIENT SUITABILITY
A client profiling process should be performed prior to participating in the UITF to guide the prospective investor if the
UITF is suited to his investment objectives and risk tolerance. Clients are advised to read the Declaration of Trust/Plan
Rules of the UITF, which may be obtained from RBank-TIG, before deciding to invest.
The RBank Peso Balanced UITF is suitable only for an investor who: (i) is at least a moderate investor, (ii) understands
that returns of the UITF are not guaranteed, and (iii) can stay with the Fund in the medium-term investment horizon to ride
out the mark-to-market volatility inherent in the bond and stock market.
KEY RISKS AND RISK MANAGEMENT
Prospective clients should not invest in this UITF if they do not understand, or are not comfortable with the
accompanying risks. Examples of specific key risks of the RBank Peso Balanced UITF are explained below. A complete
statement of inherent investment risks is listed in the UITF Risk Disclosure Statement, a required document for account
opening.
Interest Rate Risk. This is the possibility for an investor to experience losses due to changes in interest rates.
The value of investments fluctuates over a given time period because of general market conditions, economic
changes or other events that impact large portions of the market such as political events, natural calamities, etc.
Market/Price Risk. This is the possibility for an investor to experience losses due to changes in market prices of
securities (e.g., bonds and equities). It is the exposure to the uncertain market value of a portfolio due to price
fluctuations
Credit Risks/ Default Risks/ Counterparty Risks. This is the possibility for an investor to experience losses
due to a borrowers failure to pay principal and/or interest in a timely manner on instruments such as bonds,
loans, or other forms of security which the borrower issued. This risk applies as well to counterparties that
RBank-TIG deals with in case of default on a contract to deliver its obligation either in cash or securities.
To mitigate risks, RBank-TIG employs risk management policies and risk monitoring tools such as
observance of Single Borrowers Limits, UITF Stress Tests, and duration. Duration measures the sensitivity of the
NAVPU to interest rate movements. The higher the duration, the more the NAVPU will fluctuate in relation to
changes in interest rates.

THE UITF 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 WILLFULL DEFAULT, BAD FAITH, OR
GROSS NEGLIGENCE.

ROBINSONS BANK TRUST AND INVESTMENTS GROUP (RBANK-TIG)


Address
Tel. Nos.
Email
Website

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: 17F Galleria Corporate Center, EDSA corner Ortigas Avenue, Quezon City, NCR, Philippines
: 702-9546/702-9506
: trustgroup@robinsonsbank.com.ph
: www.robinsonsbank.com.ph

ROBINSONS BANK BALANCED FUND


KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT
As of June 30, 2016 (Q2 2016)
CUMULATIVE PERFORMANCE (% )
1 mo
3 mos
6 mos
1 yr
BF Net of fees and tax
2.58%
1.20%
1.70%
-1.05%
Benchmark
2.68%
3.76%
6.27%
2.38%
*Returns are in absolute amounts and are NOT ANNUALIZED for tenors below 1 yr

NAVPU OVER THE PAST 12 MONTHS


Highest
Lowest

145.00
BF NAVPU

140.00
Benchmark
135.00

137.593623
128.548994

130.00

STATISTICS
125.00

6/30/2016

5/31/2016

4/30/2016

3/31/2016

2/29/2016

1/31/2016

12/31/2015

11/30/2015

10/31/2015

9/30/2015

8/31/2015

7/31/2015

120.00

6/30/2015

Weighted Ave. Duration


2.79
Volatility*
5.19%
Sharpe Ratio**
(0.53)
Information Ratio***
(0.53)
*Volatility measures the degree to which the UITF fluctuates, vis--vis its average return
over a period of time.
**Sharpe ratio is used to characterize how well the return of a UITF 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.

PORTFOLIO COMPOSITION
TOP TEN HOLDINGS (% )
ASSET CLASS

ISSUER

% OF FUND

EQUITY

Universal Robina Cor

14.26%

SDA

Bangko Sentral

10.98%

CORP BOND

Aboitiz Power Corp.

8.77%

CORP BOND

SM Prime Holdings

8.73%

CORP BOND

Filinvest Land, Inc.

8.70%

COMM'L PAPER

SL AGRITECH

8.11%

EQUITY

Int'l. Container Ter

8.02%

EQUITY

Manila Water Corpora

7.21%

EQUITY

SAN MIGUEL CORP. PER

6.41%

EQUITY

Energy Development (

5.96%

SDA
10.98%

COMM'L
PAPER
8.11%

CORP BOND
36.22%

EQUITY
44.69%

OTHER DISCLOSURES
Related Party Transactions
The UITF has an equity investment in URC amounting to PHP 1.706-Mn as of report cut-off date. All related party
transactions are conducted on an arms length basis and best execution basis and within the regulatory 15%
investment limit of the UITF.
Prospective investments
The UITF will continue to invest in fixed-income portfolio to include BSP-SDA, time deposits/SSA with its BoDaccredited counterparty banks, to include its own bank and tradable bonds like FXTN/ prime corporate bonds.
Investments up to a maximum 50% allocation in its Board-approved stocks in holding companies, utilities,
consumer companies, banking, and other blue-chip equities will be based on market-driven circumstances.
FUND MANAGERS OUTLOOK AND STRATEGY
Local Equity Market
nd
The local equities market ended the 2 quarter of 2016 strong at 7,796.25, up by 12.14% year-to-date. It traded
at its highest level for the year at 7,798.53 on June 29, significantly up by 28.18% from its lowest level during the
same year in January. Stable economic growth brought about by sustainable OFW remittances and the BPO
sector continued to spur investor demand, increasing the PSEi by 5.33% month-on-month, 7.35% quarter-on
quarter, and 3.06% year-on-year. Meanwhile, markets remain volatile as investors continue to be cautious
considering the decelerating global growth, with Chinas economic slowdown, the possibility of 2 rate increases
this year by the US Fed, and concerns on the Eurozone amid the Brexit. On the positive side, the peaceful
election caused optimism in the Philippine market as the newly elected president, Rodrigo Duterte took office on
June 30. Investors are optimistic with the new administrations call for change and its promise to deliver and
execute its 10-point agenda. The Duterte administration inherited a rather strong economy brought about by the
presidency of Noynoy Aquino. However, most Filipinos are craving for more as they felt that the growth of the
country wasnt as inclusive as they expected it to be. In lieu of this, investors are awaiting for cues from the
market both domestically and internationally. While the market has been rather bullish and generally in an upward
trend from the start of the year, valuations may be on the high side as the market tests the 7,800 level.
Local Fixed-Income Market
Preliminary data show that domestic liquidity (M3) grew by 13.5% year-on-year in May to reach almost P8.7
trillion. This was faster than the 12.8% (revised) expansion recorded in April, as money supply continued to
expand due largely to sustained demand for credit. This sustained expansion of M3 during the month indicates
that money supply remains sufficient to support economic growth. Meanwhile, headline inflation increased to
1.9% year-on-year in June from 1.6% in May, and was within the BSPs forecast of 1.5%-2.4% for the month.
However, the resulting year-to-date average inflation rate of 1.3% was still below the governments inflation target
range of 2%-4%. Core inflation, which excludes certain volatile food and energy items, also rose to 1.9% in June
from 1.6% the previous month. BSP Governor Amando Tetangco, Jr. noted that the higher inflation reading is
consistent with the BSPs assessment that inflation will move within target within the policy horizon.

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