East West Bank and Phil Equity rolled up the curtain for the Philippine Economic last quarter economic forecast with a full cavalry support of all branch officers of the East West Bank. The tenets core of Equity Investing principles embodied by the East West bank , local , regional and world scenario were being brought out in the opened by the Phil Equity Securities modern evangelist Mr. Wilson Sy.

To correlate the Philippine Economy which named as the best performer in the Asean region to the World largest economy of the United States of America could be attributed to the regulations and policies implemented by the President Ninoy Aquino III economic "tsar" in personified by Philippine Stock Exchange Mr. Hans Sicat . Who had just received his accolade is the best model of corporate governance by Asian Regional Magazine " Corporate Governance Asia"based in Hongkong. Together with the guardian of Banking Interest , Inflationary rate and other derivatives rates affecting the monetary and  financial systems of the Philippines in the person of Mr. Armando Tetangco Jr.

"The Philippine Economy  is expected to end  a high flying grade of 6.75 % Gross Domestic Products which comparing to the World Largest economy of USA  sluggish to a grade of 3.5 something "this is according to Mr. Wilson Sy.

The evening of  practical tips of investing in Equity have been summarized by Jose Emmanuel U. Hilado, senior executive vice president , Chief operating officer of the East West bank ,

 Good evening ladies and gentlemen.

That was a great , interesting presentation from Wilson Sy and his team. If you are still on a non believer in Philequity and the Philippines after presentation then either you were just day dreaming the whole time you are the real life version of Mr. Glum in Gulliver's Travels who would always say" It will never make it, we're doomed".

Today we have officially launched our Distribution partnership with PhilEquity Fund and we are looking forward to offering it to our clients through our Trust Feeder Fund Structure . We are bullish long term for equities because we think that the low interest rate environment in the Philippines for the past 5 years will remain (mention previous rates) and this has forced people to change their asset allocation. Instead of the usual time deposits investors and savers are now willing to take more risk be it in equities or real estate. Gone are the days when people could say I am "living on interes".

And so for the past 10-12 years whe have seen a dramatic growth in mutual funds and UITFs in the local market. In 2005 UITF levels were at P252B. As of June 2014 UITFs are at P 595 B. And we expect this to continue growing not only because of the low rate environment but also because of changing demographics and increasing wealth distribution. And we also expect that the proportion invested in stocks will continue to increase vs that of fixed income.

But investing in equities entails risk, both market and credit risk and that is why it takes some effort to self manage one's portfolio . This is where we see the need for a professional fund manager. Someone who is equipped to manage the risk and has the discipline to be more of an investor rather than a speculator.

On our part in East West , we believe in equities as an asset class for investors and we believe that is just a question of choosing the right fund manager.

And so today we have here to launched our distribution partnership with PhilEquity . And there is only one reason why we are partnering with Philequity for this equity fund- and that is performance. As the presentation earlier showed , the CAGR  of PhilEquity over a period of 20 years is 19.2% vs.4.7% . Although we always say that past performance is not a guarantee of future performance ,w hat we can conclude is that this is a fund that has been well managed through the most volatile of times in recent history. And if one can manage a fund through times like that and still deliver excellent returns, then chances are your funds will be well managed well into the future.

I recently read the financial times an article about fund managers. The article said that there are still evidence to suggest that it is worth paying the fees of active fund management but there are a few managers who appear to be worth their fees. And they are rare because you have to show consistent outperformance through time. One of them is Benjamin Graham ( the guy who developed the discipline of security analysis is considered a value investor) whose fund returned 21 % a year over 20 years . Sir John Templeton of the famous Templeton Growth Fund was also mentioned . He delivered a return of 14.5 % from 1954 to 1992 . The last one is Peter Lynch who ran the Magellan Fund of Fidelity from 1977 to 1990 and averaged 29 % per annum.

Now if we relate that to PhilEquity which returned 19.2% over period of 20 years thent he obvious conclusion is that PhilEquity's track record compares to that of the world's best fund managers - and of course the conclusion that they deserve their fees. Maybe I should write the financial times and tell them that they over looked a fund manager in the Philippines who has shown the same track record worth and worth his fee- you are ok  with that Mr. Wilson sir?

In closing , I wish to thank our clients who joined us today. Thank you for your business. We are confident that we are bringing to you a sound investment alternative. We look forward to doing more business with you. To the PhilEquity team, Mr. Sy , Mr. Bunyi , thank you for doing the presentation today and we look forward to a successful and lasting partnership with PhilEquity.

Have a pleasant evening and do stay with us for some cocktails.


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