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(2014) Mutual Fund Winners and Losers in the Philippines




Best Mutual Funds in the Philippines to Invest InThe 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:

  1. ATR Kim Eng Alpha Opportunity Fund: +36.32%
  2. Philequity Dividend Yield Fund: +29.80%
  3. 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:

  1. Cocolife Fixed Income Fund: +4.65%
  2. Prudentialife Fixed Income Fund: +1.99%
  3. 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 RankPESO STOCK FUNDS2014 Return2013 Return2012 Return2011 Return
1ATRKE Alpha Opportunity Fund36.32%1.14%No dataNo data
2Philequity Dividend Yield Fund29.80%No dataNo dataNo data
3Philequity Fund27.79%0.75%33.30%6.11%
4Philippine Stock Index Fund22.40%1.87%34.33%3.05%
5Philequity PSE Index Fund21.51%3.54%29.61%8.17%
6ATRKE Equity Opportunity Fund19.67%4.02%27.71%-1.60%
7ALFM Growth Fund19.19%-1.55%19.10%-1.30%
8Sun Life Prosperity Philippine Equity Fund17.79%-2.67%32.02%2.39%
9Philam Strategic Growth Fund17.15%-8.55%29.30%2.66%
10First Metro Save and Learn Equity16.91%-1.72%26.97%8.18%
11United Fund11.44%-12.44%18.61%-4.02%
12Soldivo Strategic Growth Fund2.46%No dataNo dataNo data
2014 RankPESO ETF2014 Return2013 Return2012 Return2011 Return
1First Metro Phil. Equity Exchange Traded Fund23.25%No dataNo dataNo data
2014 RankDOLLAR STOCK FUND2014 Return2013 Return2012 Return2011 Return
1ATR KimEng AsiaPlus Recovery Fund2.13%-2.15%No dataNo data
2014 RankPESO BALANCED FUNDS2014 Return2013 Return2012 Return2011 Return
1PAMI Horizon Fund (GSIS Mutual Fund)13.86%-10.75%23.74%0.86%
2Philam Fund12.81%-8.87%24.66%2.80%
3NCM Mutual Fund of the Phils.12.60%-9.10%21.62%2.92%
4Bahay Pari Solidaritas Fund12.56%0.12%25.73%0.85%
5Sun Life of Canada Prosperity Balanced Fund11.77%-1.34%24.56%3.08%
6ATRKE Philippine Balanced Fund11.43%7.49%22.80%No data
7Optima Balanced Fund10.53%8.02%24.22%6.32%
8One Wealthy Nation Fund7.42%0.52%24.82%6.62%
9First Metro Save and Learn Balanced Fund3.67%No dataÊNo dataÊNo dataÊ
2014 RankDOLLAR BALANCED FUNDS2014 Return2013 Return2012 Return2011 Return
1Cocolife Dollar Fund Builder6.85%-4.62%9.65%4.83%
2Sun Life Prosperity Dollar Advantage Fund0.22%10.92%8.64%-0.51%
3PAMI Asia Balanced Fund-4.09%14.25%11.68%-9.60%
2014 RankPESO BOND FUNDS2014 Return2013 Return2012 Return2011 Return
1Cocolife Fixed Income Fund4.65%5.29%7.61%6.82%
2Prudentialife Fixed Income Fund1.99%9.61%7.83%2.86%
3Philequity Peso Bond Fund1.92%14.24%8.03%9.02%
4ALFM Peso Bond Fund1.59%4.43%5.81%6.69%
5Philam Bond Fund1.25%5.66%8.69%7.44%
6Ekklesia Mutual Fund1.25%7.57%6.69%10.35%
7Sun Life of Canada Prosperity Bond Fund1.17%4.68%5.62%8.33%
8Sun Life Prosperity GS Fund0.93%2.40%5.86%5.70%
9Soldivo Bond Fund-0.50%No dataNo dataNo data
10First Metro Save and Learn Fixed Income Fund-0.84%18.83%11.31%12.34%
11Grepalife Fixed Income Fund-0.94%2.84%5.43%7.24%
12Grepalife Bond Fund-1.33%3.41%10.77%4.79%
2014 RankFOREIGN CURRENCY BOND FUNDS2014 Return2013 Return2012 Return2011 Return
1Philam Dollar Bond Fund9.24%-9.24%11.40%3.54%
2MAA Privilege Dollar Fixed Income Fund8.90%-12.56%No Data5.56%
3Grepalife Dollar Bond Fund6.21%-4.38%16.95%3.47%
4ALFM Dollar Bond Fund5.90%-3.25%9.65%3.95%
5Philequity Dollar Income Fund5.60%-2.74%11.86%5.24%
6Sun Life Prosperity Dollar Abundance Fund5.25%-10.71%10.46%5.84%
7ALFM Euro Bond Fund4.74%0.72%8.76%-0.05%
8ATR KimEng Total Return Bond Fund3.76%-4.49%4.38%2.10%
9MAA Privilege Euro Fixed Income Fund1.59%-3.94%No Data-3.33%
10PAMI Global Bond Fund-1.96%-19.56%1.90%1.96%
11First Metro Save and Learn Dollar Bond FundNo dataNo dataNo dataNo data
2014 RankPESO MONEY MARKET FUNDS2014 Return2013 Return2012 Return2011 Return
1ALFM Money Market Fund0.99%1.95%3.00%3.29%
2Philam Managed Income Fund0.17%0.66%2.51%1.06%
3Sun 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:

Our awesome primers on ETF:

See also: Comparative Returns of Unit Investment Trust Funds (UITF) in the Philippines







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