PhilEquity bullish, eyes three new funds

PhilEquity Management Inc. is still bullish not only in the equities market but also the bond market as it successfully launched three new mutual funds, and plans to introduce three more next year.

From just managing the PhilEquity Fund (mutual fund for the equities market), it quietly re-introduced three mutual funds. These are the PhilEquity Money Market Fund (peso-denominated bond fund), the PhilEquity PSE Index Fund, and the PhilEquity Dollar Income Fund.

It has already applied with the Securities and Exchange Commission (SEC) for three new funds which, if approved this year, will be launched in the first half of 2007.

"The country’s economic fundamentals are bullish, the basic fundamentals of the corporates and other businesses are good," Hector C. de Leon, PhilEquity Management executive vice president, said.

De Leon said that fund managers estimate that the equities market will remain strong for the rest of the year. There has also been a noticable shift by foreign and domestic investors to the blue chips, and a definite migration from the speculative issues.

Earnings of the 231 listed companies at the Philippine Stock Exchange (PSE) grew by 29.7 percent in the first six months of the year. Stock prices, as tracked by the PSEi, rose by four percent from 2,096.4 from January to June 2005 to 2,178.79 this year.

Combined gross revenues of listed companies rose to P989.13 billion so far this year compared to the P832.99 billion the previous year.

PSE officials said that all industry groups enjoyed double-digit growth in income, with the exception of the services sector which grew nonetheless by six percent.

Likewise, the country’s credit ratings remain positive so far, and there are strong indications that it could improve depending on the fiscal position by yearend.

There are, however, concerns over the global oil prices, US interest rates, and the coming elections.

Meanwhile, the four existing funds under its management reached record levels with its assets under management (AUMs) reaching P1.27 billion as of Sept. 21.

The PhilEquity Fund accounted for roughly P800 million, and the Money Market Fund in the P250-million vicinity. The Dollar Income Fund amounted to $3 million (or P188 million), and the juvenile PSE Index Fund accounted for P30 million of the total.

In terms of year-to-date (YTD) yields, the Equity Fund reached 31.79 percent, the Dollar Income Fund, 5.08 percent; the Money Market Fund, 10.84 percent; and the PSE Index Fund, 19.15 percent.

De Leon said that PhilEquity Management will remain strong and bullish with attracting the retail market next year.

"We will still build our brand and equity name, and make a strong bid for the overseas Filipino worker (OFW) market," the executive vice president said.

The year 2007 will also see an increase in onsite marketing of companies, which will include discussions and forums on wealth management for the client market. Just recently, PhilEquity held a modest forum for early retirees of San Miguel Corp.

By end year, the fund manager’s sales and backroom force would increase by another 15. These will dramatically increase next year if the three new funds are launched.

The PhilEquity Fund, launched in 1994, has been the leader in terms of returns in the equities mutual fund market, according to a survey conducted by Bloomberg as of July 2006.