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PHILIPPINE STOCK INDEX FUND

July 31, 2010
„ Investment Objective „ Fund Manager's Report
To achieve investment returns that track the performance of the Philippine Stock Philippine equities posted a 1.6% month-on-month gain in July, reaching a 2-year high
Exchange Composite Index (PSEi). index level of 3,472 intra-month. Local investors remained upbeat on Philippine stocks,
contributing to roughly 63% of turnover despite foreign investors turning net sellers for
the month. Favorable macroeconomic newsflow helped support the index above the 3,400
„ Fund Performance level, as benign inflation, healthy remittances and robust exports showed signs of a
Absolute Returns Fund PSEi resilient economy. As a result, we saw cyclical issues such as Ayala Land (ALI) and
Year-to-date 12.26% 12.26% Megaworld (MEG) gain 8.3% and 5.6%, respectively. Consumer-related companies like
2009 63.00% 63.00% Jollibee and Universal Robina Corporation outperformed as well; while Aboitiz Power
2008 -48.29% -48.29% (AP), the PSEi’s second best performer year-to-date, rose 8.9% on expectations of strong
2007 21.43% 21.43% second quarter earnings.
2006 42.29% 42.29%
2005 14.99% 14.99% In the near-term, we still see more upside for local shares, especially with second quarter
earnings set for release next month. We expect results to come in better-than-expected,
Returns are net of fees. Past Performance is not an indication of future returns. PSEi is a thus providing support for further run-ups as we upgrade our year-end index target to
barometer of stock price movements in the Philippine Stock Exchange. 3,700.
„ Fund Facts
Launch Date March 14, 2003 „ Net Asset Value Per Share
Structure Mutual Fund 450.00
Fund
Fund Type Index Tracker Equity Fund 400.00 PSEi

Base Currency Philippine Peso 350.00

Net Asset Value PhP 2.35 Billion
300.00
NAV Per Share (NAVps) PhP 374.03
Par Value PhP 100.00 250.00

Minimum Investment PhP 50,000.00 200.00

Minimum Additional PhP 10,000.00 150.00

Minimum Holding Period 180 days 6

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Early Redemption Fee 1.00%

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Management Fee 1.50% p.a. „ Portfolio Composition
Financial Reporting Philippine Financial Reporting Standards Food
Property Power and Energy
5.7%
Fund Manager Bank of the Philippine Islands 13.6% 13.9%
Receiving Bank Bank of the Philippine Islands Branches Mining
BPI Family Savings Bank Branches T ransportation
2.1%
Custodian HSBC 2.3%
Banks
Dealing Daily up to 12 noon
16.3%
Bloomberg Ticker BPIPHID PM Communication
21.7%
„ Risk Characteristics Cash, Fixed Income
Risk Measures Past 12 Months & Other Holdings
Jul 31, 2010 Low Hi gh Average Receivables 17.6%
Volatility, Past 360 Days 18.24% 18.24% 35.66% 22.99% 6.8%
Tracking Error, Past 360 Days 0.68% „ Top 10 Holdings % of Fund
Philippine Long Distance Tel. Company 18.0
Volatility is a measure of fluctuations in NAVpu. The higher the number, the higher the Ayala Land, Inc. 7.1
potential gain or loss. Tracking error is the measure of deviation between the Fund’s Bank of the Philippine Islands 5.8
returns and the benchmark returns. A lower number means the Fund’s return is closely SM Investments Corporation 5.7
aligned with the benchmark. Ayala Corporation 4.8
Aboitiz Equity Ventures Inc. 4.6
Risk Disclosure
Metropolitan Bank and Trust Company 4.5
The Fund is suitable for investors who take medium to long-term views. The Fund’s
PNOC Energy Development Corporation 4.1
net asset value, and total return may fall as well as rise as a result of stock price
Manila Electric Company 3.7
movements. On redemption of shares, an investor may receive an amount less than the
SM Prime Holdings Corporation 3.2
original amount of investment.
Any prospective investment shall be limited to the type of investments described in the
Prospectus of the Fund.

Philippine Stock Index Fund, Inc. is an open-end investment company or “mutual fund” registered with the Securities and Exchange Commission (SEC). It is not guaranteed by the Fund Manager
nor by the Philippine Deposit Insurance Corporation (PDIC). As such, shares of participation of the investor, when redeemed, may be worth more or worth less than his/her initial
investment/contributions. Due to the nature of the investments, yield and potential yields cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility of the
securities held by the mutual fund, even if invested in government securities, is for the account of the investor. Historical performance, when presented, is purely for reference purposes and is not a
guarantee of future results. The Fund Manager is not liable for losses, unless upon willful default, bad faith or gross negligence. For the purpose of lodging, clearing, settlement, and delivery of
securities in the mutual fund, the Fund Manager is authorized to avail of the services of third party institutions such as but not limited to custodians which the Fund Manager may change or replace
without prior notice to or approval from the investors. The Fund Manager will not be responsible for any loss or damage suffered by the Fund as a result of the third parties’ willful default, gross
negligence, or evident bad faith. Investors are advised to read the Prospectus of the Fund which may be obtained from authorized distributors before deciding to invest. For inquiries, please call:
BPI Capital Corp. (632) 845-5695 to 98; BPI Investment Management, Inc. (632) 845-5033 to 35; BPI Securities Corporation (632) 816-9190 or (632) 816-9192, email bpi_trust@bpi.com.ph or
visit www.bpiexpressonline.com.