With the current decline of the Philippine stock market from
the bull run capped by the series of record highs starting from the last
quarter of last year, many Equity and Balanced fund investors were alarmed and anxious
due to the temporary setbacks on their portfolio.
Funds with higher percentage of its portfolio composition
invested in the stock market like the Equity and Balanced funds are directly
affected by the stock market performance.
The volatility of the stock market
will brought losses and gains in your investments. The degree of losses and the
ability of the fund to recover from such, in case of market downtrend, will
stem from the skills of your fund manager managing your fund. This is the
reason behind, where some stocks remain strong despite the market downtrend
while other funds are longer to recover.
For investors with medium to long-term horizons and wanted
above average gains in their portfolio, a very good option is the Long Term
Bond Funds. Several of these bond funds are presently doing well in the trust
market without the fuss of volatility and risk brought about by the equity
market.
Most Long Term Bond Funds were invested in government
securities and bonds, corporate bonds and the cash market with maturity profile
of more than 1 year.
Several of the Long Term UITF bond funds offered in the
trust market are the following with the YTD and Year–On–Year performance.
- Security Bank Peso Bond Fund – YTD = 16.48%, YOY = 25.23%
- BPI Odyssey Tax-Exempt Peso Fixed Income Fund – YTD = 15.19%, YOY = 23.64%
- BPI Odyssey Peso Bond Fund – YTD = 15.33%, YOY = 23.42%
- RCBC Rizal Peso Bond Fund – YTD = 15.18%, YOY = 22.08%
- Land Bank GS-FI Fund – YTD = 10.23%, YOY = 7.1537%
- East-West Bank Infinity Peso Long Term Fund – YTD = 6.99%, YOY = 11.164%