Thursday, January 24, 2013

Benchmarking: Equity Mutual Funds and UITF

(source: Bloomberg)

When you are given a dozen eggs and inspect them closely, you will eventually see they are not of the same size (and sometimes shape) even though they came from the same poultry farm.

If you need a more human example: when you see a set of siblings, you will realize they are different from each other even though they came from the same mother and father.

Same with equity mutual funds and equity UITF, even though they are invested in the same stock market (same parent so to speak), the result of each fund differs from the others. You may compare them one by one... but you can also use just one "ruler" to measure all of them -- the Philippine Stock Exchange Index or PSEi.

Graphs after the jump.

I used Bloomberg to show the 5-year charts of some of the equity pooled funds in the Philippines. I then compared each of them to the PSEi. Without any more words, here are the results.

AB Capital Equity Fund vs. PSEi

BDO Equity Fund vs. PSEi

BPI Equity UITF vs. PSEi

First Metro Save & Learn Equity Fund vs. PSEi

Metro Equity Fund vs. PSEi

Odyssey Philippine Equity Fund vs. PSEi

 Philam Strategic Growth Fund vs. PSEi

Philequity PSE Index Fund vs. PSEi

UCPB United Equity Fund vs. PSEi 

Philequity Fund vs. PSEi

Sun Life (Canada) Prosperity Philippine Equity Fund vs. PSEi


(The order of the pictures DOES NOT indicate performance ranking of the funds against the benchmark, PSEi. All charts were extracted today, Jan. 24, 2013)

P.S. As always, historical performance is not a guarantee of future returns.

P.P.S. As mentioned in my previous post, I will do peso cost averaging back-testing with Philequity Fund soon.

add me on facebook:
follow me on twitter: @pisomatters
email me:
see you on PEX. my id: pisomatters


  1. Great details shared here. It will be really helpful to all investors to get aware about the Market. Nice representation.

  2. Are data provided by the funds operators to Bloomberg?

    And how does Bloomberg vet the data sent to it by funds operators. if it does at all?

    Forgive me, but I am curious.


    1. I am very sorry but I am not qualified or knowledgeable enough to answer questions regarding the process of Bloomberg or the fund operators. But my wildest guess for your question would be that Bloomberg and the funds have a memorandum of agreement that fund operators would provide the data for Bloomberg.

  3. I forgot to ask you, have you looked into UnionBank's Large Cap Philippine Equity Portfolio.


    1. Wow, it performed greatly for the past four to five years. Are you invested in UB's LArge Cap Philippine Equity Portfolio?

      Thanks for the heads up. :)

    2. But the minimum investment is P100,000. I'm just a retail investor. :P


Express. Ask. Discuss.