FUND FACTS

Classification: Money Market Fund Net Asset Value per Share (NAVPS): Php 113.91

Launch Date: March 1, 2010 Total Fund NAV (Mn) : Php 2,003.34

Minimum Investment: Php5,000.001 Dealing Day: Daily up to 12:00NN

Additional Investment: Php1,000.001 Redemption Settlement: T+0 End-of Day

Minimum Holding Period: 30 calendar days Early Redemption Charge: 1.00%

FEES*

Management/Advisory Fee: 0.75% Custodianship Fees: 0.0005% External Auditor Fees: 0.0277% Other Fees: 0.00%

BPI Investment Management, Inc2/

BPI Asset Management

HSBC Isla Lipana None

* As a percentage of average daily

NAV for the quarter valued at

Php1,966.10 Million

*Billings received in 2014 divided by the average daily NAV

KEY RISKS AND RISK MANAGEMENT

You should not invest in this Fund if you do not understand or are not comfortable with the accompanying risks.

Interest Rate

Risk:

The fund invests in short term domestic fixed income securities, exposing investors to the risk of loss arising

from a rise in interest rates, which generally causes fixed income security prices to decline. Factors/ events

that may lead to a rise in interest rates include adverse market conditions, issuer-specific factors/ events and/

or negative developments in domestic political and economic conditions.

Liquidity Risk:

Investors are exposed to the risk of loss due to the fund’s inability to convert security holdings to cash

immediately or in instances where conversion to cash is possible but at a highly disadvantageous price due to

limited buyers/ sellers in the market, low trading volumes or market disruptions, among other reasons/ factors.

Credit/Default

Risk:

Investors are exposed to the risk of loss due to the failure of the borrower/ debt issuer to make timely interest

and/ or principal payments on its deposit liabilities, loans, bonds or other debt instruments due to a

deterioration in the borrower’s/ issuer’s financial condition or external factors and events that may affect its

ability to repay financial obligations such as negative developments in domestic political and economic

conditions.

In accordance with the provisions in the Prospectus, the Fund implements a risk management policy that applies the principles

of Value-at-Risk (VAR). The Fund may also use financial derivatives to hedge the portfolio against market and credit risks.

INVESTMENT OBJECTIVE AND STRATEGY

The Fund aims to achieve preservation of capital and stable income by investing in a diversified portfolio of Philippine Peso

denominated short-term fixed income and money market instruments. The Fund aims to outperform its benchmark, the

HSBC Philippines Money Market Index.

CLIENT SUITABILITY

A client profiling process should be performed prior to participating in the Fund to guide the prospective investor if the Fund is

suited to his/her investment objectives and risk tolerance. Clients are advised to read the Prospectus of the Fund, which may

be obtained from the Fund Manager, before deciding to invest.

The ALFM Money Market Fund is suitable only for investors who:

• Are at least classified as conservative based on their risk profile

• Have an investment horizon of up to one (1) year.

• THE MUTUAL FUND IS NOT A DEPOSIT AND IS NOT INSURED BY THE PHILIPPINE DEPOSIT INSURANCE CORP.

(PDIC).

• RETURNS CANNOT BE GUARANTEED AND HISTORICAL NAVPS IS FOR ILLUSTRATION OF NAVPS MOVEMENTS/

FLUCTUATIONS ONLY.

• WHEN REDEEMING, THE PROCEEDS MAY BE WORTH LESS THAN THE ORIGINAL INVESTMENT AND ANY

LOSSES WILL BE SOLELY FOR THE ACCOUNT OF THE CLIENT.

• THE FUND MANAGER IS NOT LIABLE FOR ANY LOSS UNLESS UPON WILLFUL DEFAULT, BAD FAITH OR GROSS

NEGLIGENCE.

For more information, you can contact us at 845-5033 / 845-5034 / 816-9038,

email us at bpi_investment@bpi.com.ph or visit our website, www.alfmmutualfunds.com.

ALFM MONEY MARKET FUND

KEY INFORMATION AND INVESTMENT DISCLOSURE STATEMENT

As of August 28, 2015

FUND PERFORMANCE AND STATISTICS AS OF AUGUST 28, 2015

(Purely for reference purposes and is not a guarantee of future results)

NAVPS GRAPH

CUMULATIVE PERFORMANCE (%) 3

1 mo 3 mos 6 mos 1 YR 3 YRS S.I. 4

Fund 0.08 0.30 0.60 1.35 5.04 13.75

Benchmark 0.34 0.52 0.86 1.95 3.90 9.34

ANNUALIZED PERFORMANCE (%) 3

1 YR 2 YRS 3 YRS 4 YRS 5 YRS S.I. 4

Fund 1.35 1.11 1.65 2.05 2.33 2.37

Benchmark 1.95 1.39 1.28 1.42 1.48 1.64

CALENDAR YEAR PERFORMANCE(%) 3

YTD 2014 2013 2012 2011

Fund 0.85 1.04 1.98 3.01 3.31

Benchmark 1.70 0.85 0.62 2.11 1.39

STATISTICS

Weighted Ave Duration (Yrs) 0.25

Volatility, Past 1 Year (%) 5 0.13

Sharpe Ratio 6 -1.28

Information Ratio 7 -0.27

Portfolio Weighted Yield to Maturity

(%) 1.94

Current Number of Holdings 21

Average Credit Rating (Moody’s/S&P) Baa3/BBB

1Contribution rounded down/redemption rounded off

to the nearest whole share. Mutual Funds do not

issue fractional shares. 2A wholly-owned subsidiary of BPI 3Returns are net of fees. 4Since Inception. 5Measures the degree to which the Fund fluctuates

vis-à-vis its average return over a period of time. 6Used to characterize how well the return of a Fund

compensates the investor for the level of risk taken.

The higher the number, the better.

7Measures reward-to-risk efficiency of the portfolio

relative to the benchmark. The higher the number,

the higher the reward per unit of risk.

*The Prospectus is available upon request through

branch of account.

TOP TEN HOLDINGS

Name Maturity %

Fixed Rate Treasury Note 1/27/2016 15.63

Metrobank Card Corp. 3/15/2016 13.98

Time Deposit 12.48

Fixed Rate Treasury Note 1/12/2016 10.19

Fixed Rate Treasury Note 11/25/2015 6.39

Time Deposit 6.24

Time Deposit 5.24

Time Deposit 5.24

Money Market UITF 5.22

Time Deposit 3.24

PORTFOLIO COMPOSITION

Allocation % of Fund

Government

Corporates

Cash and Other Receivables

38.40

2.57

59.03

Maturity Profile

Cash and less than 1 year

Between 1 and 3 years

Between 3 and 5 years

Between 5 and 7 years

Between 7 and 10 years

More than 10 years

98.17

1.83

0.00

0.00

0.00

0.00

Portfolio Weightings

Philippine Corporate Bonds

Philippine Sovereign Bonds

2.57

38.40

Asset Valuation

Marked-to-market 5.22

Amortized Cost 94.78

NAVPS over the past 12 months

Highest 113.91

Lowest 112.39

100

104

108

111

115

Aug-10 Nov-11 Feb-13 May-14 Aug-15

Fund

Benchmark

OUTLOOK AND STRATEGY

Market Review. The HSBC Philippine Local Currency Bond Index increased by 1.13% in August. Average bond yields

decreased by 19 basis points, mostly driven by the decrease short term tenors. Twenty year bonds outperformed for the

month declining by 35 basis points. Peso-denominated government bonds continued to see lackluster demand with daily

volumes averaging only PHP14.8Bn.

Inflation surprised the market easing to 0.8% in July. The inflation print brings the average figure for the year to 1.9%,

breaching the low end of the BSP target. Monetary Board members have adjusted inflation forecasts for 2015 from 2.1% to

1.8%.

The Bureau of Treasury announced a bond exchange wherein a minimum of PHP 50Bn will be issued in 10 and 25-year

bonds. Holders of eligible outstanding government securities may opt to swap bonds to the new 10 or 25 year bonds.

Market players will likely focus on the exchange in the near term.

Fund Performance. The Fund gained 0.08% in August, missing the benchmark by 26 basis points. It underperforms the

benchmark on a year-to-date basis by 85 basis points with a return of 0.85%.

Fund Strategy. The fund will maintain its duration of less than 1 and will continue to diversify into corporate notes and

bonds for yield enhancement. Market liquidity coupled with well-anchored inflationary expectations may continue to keep

short term rates relatively low.