Good day, Investment Partners!
This is to notify all participants of the ABF Philippines Bond Index Fund (ABF PBIF) that BPI Asset Management, as fund manager to the ABF PBIF, received a notice from Markit, the index provider for iBoxx ABF Philippines Index, that effective on the close of business on 23 September 2013, Markit will implement changes to the pricing rules for peso-denominated bonds in the Markit iBoxx Asia Ex-Japan / ABF Pan-Asia Indices.
The change has been brought about by the recent divergence in the interpolated data and traded data published by PDEX on the long end of the peso-denominated government bond yield curve. After consulting the Asian Oversight Committee, Markit will implement changes to the pricing rules for peso-denominated bonds to ensure accurate pricing for the indices. The pricing of peso-denominated bonds will be predominately based on traded yield data published by PDEX rather than the PDSI-R2 interpolated yield data. This may create an effect similar to an increase in bond yields, or conversely, to a decrease in bond prices.
ABF PBIF is an index-tracker bond fund which tracks the iBoxx ABF Philippines Index. Participants are advised to evaluate whether the fund remains suitable to their risk preference.
For your necessary information.