(2011) Returns of Philippine Mutual Funds

Despite the continuing economic crunch in the global markets, fueled by the European debt crisis and the United States’ troubled finances, the Philippines survived 2011 and managed to end the year with above-average performance.

While most equity markets around the world had negative growths in 2011, the Philippines closed the year with a 4.07% gain — the best performance of a stock market in Southeast Asia. Investment funds followed suit. Most Philippine mutual funds, for example, ended in positive territory.

But the year 2011 was the year of bonds and fixed-income funds. While only three out of eight equity funds managed to beat the benchmark Philippine Stock Exchange index, all but one peso bond funds successfully surpassed the performance of the equity index. The improving credit rating of the Philippines and investors’ risk aversion due to uncertainty in the global markets made bonds more attractive in 2011. Hence, bond funds registered an average return of 7.43% last year — better than the average return of 3.12% booked by equity funds.

Below is a summary of the annual return of Philippine mutual funds during the past years. It also includes the aggregate 5-year return of each fund, or the 5-year percentage gain (or loss) if you invested in each fund since the start of 2007 and until the end of 2011.

PERFORMANCE REPORT OF PHILIPPINE MUTUAL FUNDS
For the Years Ended 2011, 2010, 2009 and 2008

2011 Rank	PESO STOCK FUNDS	2011 Return	2010 Return	2009 Return	2008 Return	5-Yr Return
1	First Metro Save and Learn Equity Fund	8.18%	63.37%	53.11%	-30.70%	15.92%
2	Philequity PSE Index Fund	8.17%	38.04%	59.17%	-40.75%	18.81%
3	Philequity Fund	6.11%	54.25%	64.99%	-40.67%	13.63%
4	Philippine Stock Index Fund	3.05%	37.56%	61.93%	-48.28%	7.74%
5	Philam Strategic Growth Fund	2.66%	55.81%	47.41%	-38.13%	11.62%
6	Sun Life Prosperity Phil. Equity Fund	2.39%	41.24%	43.52%	-37.59%	9.32%
7	ATR KimEng Equity Opportunity Fund	-1.60%	51.82%	42.91%	-41.46%	7.30%
8	United Fund	-4.02%	23.32%	25.00%	-14.28%	6.66%

2011 Rank	DOLLAR STOCK FUNDS	2011 Return	2010 Return	2009 Return	2008 Return	5 Yr. Return
1	ATR KimEng AsiaPlus Recovery Fund	-21.01%	New	New	New	No data

2011 Rank	PESO BALANCED FUNDS	2011 Return	2010 Return	2009 Return	2008 Return	5 Yr. Return
1	First Metro Save and Learn Balanced Fund Inc.	6.62%	61.97%	45.36%	-6.27%	No data
2	Optima Balanced Fund, Inc.	6.32%	27.40%	21.46%	-23.89%	6.29%
3	Sun Life Prosperity Balanced Fund, Inc.	3.08%	30.67%	21.70%	-23.75%	7.95%
4	NCM Mutual Fund of the Phils., Inc	2.92%	No data	New	New	No data
5	Philam Fund, Inc.	2.80%	48.67%	36.91%	-32.52%	10.83%
6	GSIS Mutual Fund, Inc.	0.86%	47.31%	36.76%	-31.50%	11.14%
7	Bahay Pari Solidaritas Fund, Inc.	0.85%	-0.75%	New	New	No data
8	ALFM Growth Fund, Inc	-1.30%	53.72%	63.25%	New	No data
9	MFCP Kabuhayan Fund, Inc.	-1.48%	42.26%	23.60%	-29.20%	5.95%

2011 Rank	DOLLAR BALANCED FUNDS	2011 Return	2010 Return	2009 Return	2008 Return	5 Yr. Return
1	Cocolife Dollar Fund Builder, Inc.	4.83%	No data	New	New	No data
2	Sun Life Prosperity Dollar Advantage Fund, Inc.	-0.51%	4.71%	9.00%	-8.68%	1.54%
3	PAMI Asia Balanced Fund, Inc.	-9.60%	No data	New	New	No data

2011 Rank	PESO BOND FUNDS	2011 Return	2010 Return	2009 Return	2008 Return	5 Yr. Return
1	First Metro Save and Learn Fixed Income Fund	12.34%	11.56%	5.32%	2.33%	6.74%
2	Ekklesia Mutual Fund	10.35%	6.54%	4.33%	1.96%	5.01%
3	Philequity Peso Bond Fund,	9.02%	8.79%	6.58%	2.33%	9.54%
4	Sun Life Prosperity Bond Fund,	8.33%	7.85%	5.58%	1.53%	5.16%
5	Philam Bond Fund,	7.44%	7.62%	5.52%	1.91%	5.34%
6	Grepalife Fixed Income Fund Corp.	7.24%	6.98%	11.96%	-3.44%	No data
7	Cocolife Fixed Income Fund,	6.82%	11.99%	12.64%	5.26%	8.66%
8	ALFM Peso Bond Fund,	6.69%	9.07%	4.62%	4.26%	5.96%
9	Sun Life Prosperity GS Fund,	5.70%	10.93%	7.59%	0.57%	5.75%
10	Grepalife Bond Fund Corporation	4.79%	5.93%	New	New	No data
11	Prudentialife Fixed Income Fund	2.86%	5.1%	3.80%	-5.00%	3.12%

2011 Rank	FOREIGN CURRENCY BOND FUNDS	2011 Return	2010 Return	2009 Return	2008 Return	5 Yr. Return
1	Sun Life Prosperity Dollar Abundance Fund, Inc.	5.84%	7.39%	16.30%	-7.08%	4.75%
2	MAA Privilege Dollar Fixed Income Fund, Inc.	5.56%	-2.23%	8.66%	-3.21%	2.17%
3	Philequity Dollar Income Fund Inc.	5.24%	7.46%	12.39%	-0.71%	7.97%
4	ALFM Dollar Bond Fund, Inc.	3.95%	6.06%	5.22%	1.97%	4.57%
5	Philam Dollar Bond Fund, Inc.	3.54%	8.97%	17.76%	-7.44%	5.59%
6	Grepalife Dollar Bond Fund Corp.	3.47%	6.46%	No data	-7.18%	5.31%
7	ATR KimEng Total Return Bond Fund Inc.	2.10%	No data	New	New	No data
8	PAMI Global Bond Fund, Inc	1.96%	0.48%	New	New	No data
9	ALFM Euro Bond Fund, Inc.	-0.05%	4.86%	6.32%	0.08%	2.56%
10	MAA Privilege Euro Fixed Income Fund, Inc.	-3.33%	4.64%	19.53%	-13.87%	No data

2011 Rank	PESO MONEY MARKET FUNDS	2011 Return	2010 Return	2009 Return	2008 Return	5 Yr. Return
1	ALFM Money Market Fund, Inc.	3.29%	3.76%	New	New	No data
2	First Metro Save and Learn Money Market Fund, Inc.	1.59%	1.74%	1.04%	New	No data
3	Philam Managed Income Fund, Inc.	1.06%	2.11%	1.77%	New	1.24%
4	ATR KimEng Money Market Fund, Inc.	0.89%	0.46%	1.26%	-5.12%	-1.43%
5	Sun Life Prosperity Money Market Fund, Inc.	0.37%	0.78%	1.39%	2.05%	1.34%

* Figures with the minus sign (-) denote a loss. All data from the Investment Company Association of the Philippines (ICAP).

Disclaimer: Although the rate of return is a good measure of performance, other factors such as consistency of return and exposure to risks must also be considered. Note that past performance of a fund is not and cannot be a guarantee of future returns.

Read more about mutual funds:

• Investing in Mutual Funds
• 2010 Performance of Philippine Mutual Funds
• Discussion Forum: Mutual Funds and UITF
• How to compute your earnings in Mutual Funds

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