(2014) Mutual Fund Winners and Losers in the Philippines
The year 2014 is again the year of equities. Obvious proof is the 30-company Philippine Stock Exchange index (PSEi), the barometer of market and economic performance in the country, which grew by 22.76% in the last year. Its stellar return landed the Philippines a spot in the Top 10 Best Performing Stock Markets Worldwide.
This is the same for Philippine mutual funds and exchange traded funds. Equity funds outperformed all other asset classes in 2014 and, although, historically this is generally expected, this has not been the case on a yearly basis.
For example, back in 2011 and in 2013, bond funds easily trumped the performance of stock funds. In addition, although the performance of bond funds is not even benchmarked with the PSEi, in those two years most bond funds managed to book higher gains than the PSE index. (See 2011 Returns of Mutual Funds and 2013 Performance of Philippine ETF and Mutual Funds)
In 2014, eleven of 12 equity mutual funds booked double-digit gains (the “underperformer” is Soldivo Strategic Growth Fund which gained 2.46% but only started in October 2014). Three funds, or around 1/4 of total equity funds, managed to beat the PSEi’s return of 22.76%.
Overall, the top 3 Peso equity fund performers in 2014 are:
- ATR Kim Eng Alpha Opportunity Fund: +36.32%
- Philequity Dividend Yield Fund: +29.80%
- Philequity Fund: +27.79%
Peso bond funds, meanwhile, had mixed returns. Majority, or 8 out of the 12 funds, had positive returns but majority of the gains were merely 1-2%. This pales in comparison to the Philippines’ inflation rate of 4.1% in 2014, which means those returns did not even manage to cover inflation.
The top 3 Peso bond fund performers last year are:
- Cocolife Fixed Income Fund: +4.65%
- Prudentialife Fixed Income Fund: +1.99%
- Philequity Peso Bond Fund: +1.92%
With bond yields registering new lows in early 2015, a possible exit of Greece from the European Union, and the US economy showing no sign of stability still, whether 2015 will be a happy year for investors is something we’ll all be watching out for.
Recap: What are Mutual Funds?
Mutual Funds are a pooled investment scheme where funds collected from a variety of investors are invested by professional fund managers in different asset classes such as stocks, bonds, and money market instruments, among others. Profits are shared by all mutual fund shareholders after deducting all fees and expenses related to fund management.
Recap: What are Exchange Traded Funds?
Exchange Traded Funds (ETFs), meanwhile, are open-ended investment companies that track a basket of assets and traded on a stock exchange. They are similar, in a way, to Mutual Funds but still differ a bit in some features.
Want to know which specific funds were the winners and losers last year? Check out our summary performance tables below.
GAINS (LOSSES) OF PHILIPPINE MUTUAL FUNDS and EXCHANGE TRADED FUNDS
Full-Year 2014 Performance
|2014 Rank||PESO STOCK FUNDS||2014 Return||2013 Return||2012 Return||2011 Return|
|1||ATRKE Alpha Opportunity Fund||36.32%||1.14%||No data||No data|
|2||Philequity Dividend Yield Fund||29.80%||No data||No data||No data|
|4||Philippine Stock Index Fund||22.40%||1.87%||34.33%||3.05%|
|5||Philequity PSE Index Fund||21.51%||3.54%||29.61%||8.17%|
|6||ATRKE Equity Opportunity Fund||19.67%||4.02%||27.71%||-1.60%|
|7||ALFM Growth Fund||19.19%||-1.55%||19.10%||-1.30%|
|8||Sun Life Prosperity Philippine Equity Fund||17.79%||-2.67%||32.02%||2.39%|
|9||Philam Strategic Growth Fund||17.15%||-8.55%||29.30%||2.66%|
|10||First Metro Save and Learn Equity||16.91%||-1.72%||26.97%||8.18%|
|12||Soldivo Strategic Growth Fund||2.46%||No data||No data||No data|
|2014 Rank||PESO ETF||2014 Return||2013 Return||2012 Return||2011 Return|
|1||First Metro Phil. Equity Exchange Traded Fund||23.25%||No data||No data||No data|
|2014 Rank||DOLLAR STOCK FUND||2014 Return||2013 Return||2012 Return||2011 Return|
|1||ATR KimEng AsiaPlus Recovery Fund||2.13%||-2.15%||No data||No data|
|2014 Rank||PESO BALANCED FUNDS||2014 Return||2013 Return||2012 Return||2011 Return|
|1||PAMI Horizon Fund (GSIS Mutual Fund)||13.86%||-10.75%||23.74%||0.86%|
|3||NCM Mutual Fund of the Phils.||12.60%||-9.10%||21.62%||2.92%|
|4||Bahay Pari Solidaritas Fund||12.56%||0.12%||25.73%||0.85%|
|5||Sun Life of Canada Prosperity Balanced Fund||11.77%||-1.34%||24.56%||3.08%|
|6||ATRKE Philippine Balanced Fund||11.43%||7.49%||22.80%||No data|
|7||Optima Balanced Fund||10.53%||8.02%||24.22%||6.32%|
|8||One Wealthy Nation Fund||7.42%||0.52%||24.82%||6.62%|
|9||First Metro Save and Learn Balanced Fund||3.67%||No dataÊ||No dataÊ||No dataÊ|
|2014 Rank||DOLLAR BALANCED FUNDS||2014 Return||2013 Return||2012 Return||2011 Return|
|1||Cocolife Dollar Fund Builder||6.85%||-4.62%||9.65%||4.83%|
|2||Sun Life Prosperity Dollar Advantage Fund||0.22%||10.92%||8.64%||-0.51%|
|3||PAMI Asia Balanced Fund||-4.09%||14.25%||11.68%||-9.60%|
|2014 Rank||PESO BOND FUNDS||2014 Return||2013 Return||2012 Return||2011 Return|
|1||Cocolife Fixed Income Fund||4.65%||5.29%||7.61%||6.82%|
|2||Prudentialife Fixed Income Fund||1.99%||9.61%||7.83%||2.86%|
|3||Philequity Peso Bond Fund||1.92%||14.24%||8.03%||9.02%|
|4||ALFM Peso Bond Fund||1.59%||4.43%||5.81%||6.69%|
|5||Philam Bond Fund||1.25%||5.66%||8.69%||7.44%|
|6||Ekklesia Mutual Fund||1.25%||7.57%||6.69%||10.35%|
|7||Sun Life of Canada Prosperity Bond Fund||1.17%||4.68%||5.62%||8.33%|
|8||Sun Life Prosperity GS Fund||0.93%||2.40%||5.86%||5.70%|
|9||Soldivo Bond Fund||-0.50%||No data||No data||No data|
|10||First Metro Save and Learn Fixed Income Fund||-0.84%||18.83%||11.31%||12.34%|
|11||Grepalife Fixed Income Fund||-0.94%||2.84%||5.43%||7.24%|
|12||Grepalife Bond Fund||-1.33%||3.41%||10.77%||4.79%|
|2014 Rank||FOREIGN CURRENCY BOND FUNDS||2014 Return||2013 Return||2012 Return||2011 Return|
|1||Philam Dollar Bond Fund||9.24%||-9.24%||11.40%||3.54%|
|2||MAA Privilege Dollar Fixed Income Fund||8.90%||-12.56%||No Data||5.56%|
|3||Grepalife Dollar Bond Fund||6.21%||-4.38%||16.95%||3.47%|
|4||ALFM Dollar Bond Fund||5.90%||-3.25%||9.65%||3.95%|
|5||Philequity Dollar Income Fund||5.60%||-2.74%||11.86%||5.24%|
|6||Sun Life Prosperity Dollar Abundance Fund||5.25%||-10.71%||10.46%||5.84%|
|7||ALFM Euro Bond Fund||4.74%||0.72%||8.76%||-0.05%|
|8||ATR KimEng Total Return Bond Fund||3.76%||-4.49%||4.38%||2.10%|
|9||MAA Privilege Euro Fixed Income Fund||1.59%||-3.94%||No Data||-3.33%|
|10||PAMI Global Bond Fund||-1.96%||-19.56%||1.90%||1.96%|
|11||First Metro Save and Learn Dollar Bond Fund||No data||No data||No data||No data|
|2014 Rank||PESO MONEY MARKET FUNDS||2014 Return||2013 Return||2012 Return||2011 Return|
|1||ALFM Money Market Fund||0.99%||1.95%||3.00%||3.29%|
|2||Philam Managed Income Fund||0.17%||0.66%||2.51%||1.06%|
|3||Sun Life Prosperity Money Market Fund||-0.08%||-0.44%||0.35%||0.37%|
* Figures with a minus sign (-) denote a loss. All data are from the Philippine Investment Funds Association (PIFA).
Disclaimer: Our articles are only informative in nature and are not intended as a solicitation of investment. PinoyMoneyTalk does not endorse any of the funds listed above. Investors must conduct due diligence before a decision to invest is made. Be advised, too, that returns are not guaranteed and loss of capital is a possibility.
Let us also highlight that returns should not be used as sole criteria when investing. Although the rate of return is typically a good measure of performance, other factors such as the fund’s consistency of return and exposure to risks must also be considered before investing. Consistency of performance refers to an ETF or mutual fund’s ability to generate expected returns over a long period of time. This is the reason why we also include the past 1-year, 3-year, and 5-year returns of each fund above.
Our easy-to-read guides on Mutual Funds and similar investment options:
- Introduction to Mutual Fund Investing
- Guide to UITF Investing
- Comparing Mutual Funds vs. UITF
- How to compute income in Mutual Fund companies
- PMT Discussion Forum on Mutual Funds
Our awesome primers on ETF:
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