ATRAM Philippine Equity Smart Index Fund

November 29, 2018

Performance Overview
Investment Objective Performance Overview
The Fund is designed to generate excess returns compared
to its benchmark through an enhanced index approach, 180.00
combining the elements of passive and active management.

Risk Return Spectrum 140.00

NAVPU
ATRAM PHIL. EQUITY
SMART INDEX FUND
100.00
Conservative Moderate Aggressive

60.00
Fund Facts
Mar-16 Aug-16 Jan-17 Jul-17 Dec-17 May-18 Nov-18

Inception Date 1 March 2016 Figures as of 11.29.2018

Cumulative Performance %
Currency PHP 1 Mo 1 Yr YTD Since Incept.
Fund 3.35 -10.51 -13.71 7.69
Fund Size 300.61 Million Benchmark 3.19 -10.74 -13.91 9.49
NAVPU
NAVPU 107.690420 31-Aug-18 28-Sep-18 31-Oct-18 29-Nov-18
Fund 115.020386 106.509379 104.199020 107.690420

Manager’s Report Portfolio Analysis

The Philippine Stock Exchange Index (PSEi) advanced by 3.19% month-on- Composition of the Fund
month (MoM) to end at 7,367.85. The local index rallied in November as
the broader Emerging Market (EM) region saw a return in risk appetite.
Net foreign flow for the month was positive at US$706.08m, which was
skewed due to San Miguel Food and Beverage’s (FB) follow-on offering, a
Robinsons Retail (RRHI) share-asset swap and an Energy Development Equities (99%)
Corporation (EDC) tender offer. Excluding these blocks, net outflow for the
month was just US$99.12m, an improvement from previous months’
aggressive foreign selling. News on the ground was focused on 3Q GDP Cash (1%)
print which came out at 6.10% (from 6.20% in the 2Q), raising concerns
about slowing household consumption due to elevated consumer prices.
October inflation was at 6.70% year-on-year (YoY), but flat when
compared to the rate of increase in September, a nine-year high. While
consumer prices still rose last month, they were not as fast as last
September’s increases as the MoM increases in food prices eased last Top Portfolio Holdings
month. Investors took this as a sign of inflation finally peaking. Sentiment
in the market quickly changed when the Bangko Sentral ng Pilipinas (BSP) SM Investments Corp 12.0%
raised interest rates by another 25 basis points (bps) to 4.75%, firming up
their commitment to stabilize inflation and the Philippine Peso (PHP). As
for the PHP, the USD/PHP closed the month at 52.45, down by 2.03% Ayala Land Inc 9.7%
MoM. The USD return on the PSEi was down by 17.90% year-to-date (YTD).
SM Prime Holdings Inc 9.3%
The ATRAM Philippine Equity Smart Index Fund was up by 3.35% MoM and
outperformed its benchmark by 16 bps in November. An underweight
position in DMCI Holdings Inc. (DMC) and an overweight position in Aboitiz BDO Unibank Inc 8.3%
Equity Ventures (AEV) contributed to the outperformance. DMC was down
by 3.89% MoM due to overall disappointing earnings from the holding
company and its subsidiary Semirara Mining and Power Corp. (SCC). AEV Ayala Corp 7.6%
was up by 11.06% MoM as bargain hunters picked it up as it recovered
from three months of straight losses after the management announced a
share buyback program. JG Summit Holdings Inc 4.7%

We think that the PSEi could trade at higher range in December as

sentiment improved after the BSP increased rates to combat inflation and Metropolitan Bank & Trust Co 4.7%
sharp volatility in the PHP exchange rate. At the same time, given the
growth discrepancy between Emerging Markets and Developed Markets
Bank of the Philippine Islands 4.6%
(DM), we see an increase in EM appetite and the foreign outflows this year
may have bottomed. The fund’s strategy continues to outperform the
market for the year where we favor the earnings and sentiment factor International Container Terminal Services, Inc. 3.3%
versus valuation and momentum factors while keeping the quality score
nil. Our weekly monitoring allows the fund to be flexible while keeping
costs in check. Jollibee Foods Corp 3.2%

The Fund is a UITF and is a trust product, not a deposit account or an obligation of, or guaranteed, or insured by the ATRAM Trust or its affiliates or subsidiaries. The Fund is not insured or governed by the
PDIC. Due to the nature of the investment, yields and potential yields cannot be guaranteed. Any loss/ income arising from market fluctuations and price volatility of the s ecurities held by the Fund, even if
invested in government securities, is for the account of the investor/ participant. As such, th e units of participation of the investor in the Fund when redeemed, may be worth more or less than his/her/its
initial investment. Historical performance, when presented, is purely for reference purposes and is not a guarantee of simila r future result. The Trustee is not liable for losses unless upon its willful default,
bad faith or gross negligence.

ATRAM Trust Corporation: 8th Floor, 8 Rockwell Bldg., Hidalgo Drive, Rockwell Center, Makati City, 1210 Philippines
Trunk line: +632-8147892 / +632-8147835 | Fax: +632-8410315 |Email: customercare_trust@atram.com.ph |Website: www.atram.com.ph
 ATRAM Philippine Equity Smart Index Fund
November 29, 2018

Monthly Performance %
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Year Cumulative
2016 7.54% -1.48% 3.45% 4.94% 1.99% -2.28% -2.20% -2.98% -8.75% 0.52% -0.24% -0.24%
2017 5.35% -0.83% 1.55% 4.74% 3.05% -0.19% 2.26% 0.11% 2.78% 2.26% -1.90% 3.71% 25.10% 24.81%
2018 1.94% -3.32% -5.66% -1.66% -3.68% -4.16% 6.36% 2.65% -7.40 -2.17% 3.35% -13.71% 7.69%

Fund Details
Fund Classification: Equity Fund Minimum Investment Amount: PHP 50.00
Base Currency: Philippine Peso Minimum Additional Investment: PHP 50.00
Benchmark: Philippine Stock Exchange Index (PSEi) Minimum Maintaining Amount: PHP 50.00
Trust Fee: 1.50% p.a. Trustee: ATRAM Trust Corporation
Inception Date: 1-Mar-16 Custodian Citibank N.A. Manila Branch
Bloomberg code: ATRPHSE PM Auditor SGV & Co.
Dealing Frequency: Daily Website www.atram.com.ph

The Fund is suitable for investors with a long-term investment horizon who seek to invest in Philippine equity securities and have a
Investor Risk Profile high risk appetite.

The Fund is a UITF and is a trust product, not a deposit account or an obligation of, or guaranteed, or insured by the ATRAM Trust or its affiliates or subsidiaries. The Fund is not insured or governed by the
PDIC. Due to the nature of the investment, yields and potential yields cannot be guaranteed. Any loss/ income arising from market fluctuations and price vol atility of the securities held by the Fund, even if
invested in government securities, is for the account of the investor/ participant. As such, the units of participation of the investor in the Fund when redeemed, may be worth more or less than his/her/it s
initial investment. Historical performance, when presented, is purely for reference purposes and is not a guarantee of simila r future result. The Trustee is not liable for losses unless upon its willful default,
bad faith or gross negligence.

ATRAM Trust Corporation : 8th Floor, 8 Rockwell Bldg., Hidalgo Drive, Rockwell Center, Makati City, 1210 Philippines
Trunk line: +632-8147892 / +632-8147835 | Fax: +632-8410315 |Email: customercare_trust@atram.com.ph |Website: www.atram.com.ph