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10 step plan (Revised)
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10 step plan (Revised)

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  • Taking advantage of market opportunities in 2009, ALFM Peso strengthened its position in the industry, garnering 75% of the entire peso bond fund industry. Its net asset value as of end 2009 was at Php22.27 billion. At far second was Philam Bond Fund, Inc. with an 11% market share and a net asset value amounting to only Php3.27 billion. At third was Sun Life Prosperity Bond Fund, Inc. with a 9% market share and a net asset value of Php2.78 billion.
  • Higher investment value in a bond fund is typically achieved over the medium to long-term. Bonds tend to generate positive returns over time as the benefit of reinvesting and compounding at higher interest rates can outweigh any short term drop in prices from volatility in interest rates. Investors who have been invested with the Fund for the past 3 years are enjoying a cumulative return of 15%, while cumulative return for the past 5 and 10 years are 41% and 110%, respectively. The Fund’s cumulative returns highlight the ability of the Fund to deliver consistent positive returns over the long-term, increasing shareholder value.
  • Despite most investors opting for virtually risk-free investments in a year that was marked with uncertainty, the peso bond fund industry grew by 2.84% in 2009. The industry’s total net asset value amounted to Php29.7 billion as of year end.
  • The Fund’s portfolio profile as of Dec. 31, 2009 consists of: 35% in medium term gs, 30% in corporate notes and bonds, 12% in money market instruments and other receivables, 9% in long term gs, 7% in short term gs, 6% in preferred shares and 1% in an index bond fund. This positioning continues to emphasize the key principle of portfolio diversification to manage market and credit risks, to achieve long-term returns that outperform the benchmark. In 2009, we actively managed the duration of the Fund to respond to changes in interest rate outlook and better manage its exposure to market risk. Duration is a measure of interest rate risk. The higher the number, the more sensitive the movement of the portfolio to changes in interest rates. ALFM was well-positioned to take advantage of interest rate movements. The Fund’s duration as of year-end was at 2.94.
  • With prudent investment strategy and risk management policies in place, the Fund has delivered steady and superior returns relative to its benchmark, the 91-day Treasury Bill, as shown in the historical annual returns. In 2009, the Fund showed a consistent positive return throughout the year, outperforming the benchmark by 110 basis points, yielding a full year return of 4.75%.

10 step plan (Revised) 10 step plan (Revised) Presentation Transcript

  • 10 Step Marketing Plan for harold ceasar t. verayo June 2010 Rold ON TIME HCTV
  • What is a Mutual Fund?
    • A vehicle for investing in stocks and bonds .
    • It pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities.
    • owner of a mutual fund unit gets a proportional share of the fund’s gains, losses, income and expenses.
    A vehicle for investing in stocks and bonds
    • The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of u nits owned by them.
    • Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
  • Mutual Fund Operation Flow Chart
  • Each mutual fund has a specific stated objective
    • Fund’s objective is laid out in the fund's prospectus, which is the legal document that contains information about the fund
    • Its history, its officers and its performance.
  • Some popular objectives of a mutual fund are - Fund Objective What the fund will invest in Equity (Growth) - Only in stocks Debt (Income) - Only in fixed-income securities MoneyMarket - In short-term money market instruments (including government securities) Balanced - Partly in stocks and partly in fixed- income securities, ('balance' in returns and risk)
  • 5 Steps for Part 1 (PTM and Positioning)
    • HCTV PTM are “Individuals- baby boomers and Institutional-retirement funds ”
    • Who want to feel financially secured
    • Can choose Philam Bond Fund, etc.
    • Gap is all other mutual funds focus on the performance of the fund on a certain period
    • The market size is P 29.7 Billion. HCTV’s share of the pie stood at P22.27 Billion.
  • 5 Steps for Part 2 (Marketing Mix & Strategy)
    • HCTV Bond Fund
    • Is 100% premium
    • Uses newspaper, magazines, brochures and events
    • Is distributed nationwide
    • Uses a market leader strategy to win
  • Positioning to the Primary Target Market Part 1: Steps 1 to 5 HCTV
  • 1.HCTV primary target market (PTM) are the Individuals- baby boomers and Institutional-retirement funds
    • Demographics (33-51, M/F, social class ABC)
    • Lifestyle (working, professionals-executives, thinks that this is the right time to exercise financial prudence and discipline)
    • Behavior (makes sure that they have a discretionary income and desires to invest in their futures, invests at least once a year)
    • I should be recognized as one of the top investors
    I am successful in life when I don’t need to work because I have money sitting in investments earning interests I want to be financially secured
  • 2. My PTM’s NWE
    • Baby boomers need
    • To part of the investors circle(social), Self-Esteem, Self actualization (can retire with huge investments and rolling interest)
    • Baby boomers choose HCTV over other mutual funds because of ….
    • Consistency of Returns , Reputation of Fund Manager, Accessibility, Market leader, Credible Risk Management Program
    • Baby Boomers expect this when they invest in HCTV
    • a fund that outperforms with great returns all the time , can easily redeem when the need arises, will make life comfortable especially during retirement phase
  • 3a. HCTV has many formidable competitors
    • Direct: Philam Bond Fund Inc. , Sunlife Prosperity Bond Inc., First Metro Save & Learn Fixed Income Fund, Cocolife Fixed Income Fund, Inc., Philequity Peso Bond Fund, Inc.
    • Indirect: Mutual Funds , UITF’s, Insurance Companies, deposits, stocks, retail bonds
    • Variables: Age, Price/Minimum Investment, economic status, returns, specific objectives of the fund, accessibility & availability, marketing promo
  • HCTV’s Competitive Position Map HCTV Bond Fund Philam Bond Fund Sunlife Prosperity Bond Price/ SC Matrix Class A Class B Class C up Class C dwn High price Low Price
  • HCTV’s Dominant Position as shown in this competitive map Other 2 brands target the save money positioning and ad campaign       Prudent Risk Management       Availability of Statements       Advertising Campaign       Promo       Competent Fund Managers       Distribution Channel       Accessibility       Affordability       Consistency of Returns Sunlife Bond Philam Bond Fund HCTV Bond Fund
  • HCTV’s Unique Positioning
    • HCTV positions itself as “The Investor’s Number 1 Choice and the most popular MF:
    • Perhaps, it’s the generally more conservative nature of Filipino investors. As the funds invest in safe government securities and fixed income securities from blue chip companies. Returns are less volatile
    • Consistent Superior Returns
    • 24/7 Accessibility, Widest Distribution Channel
    • Seasoned Fund Managers
    • Free life insurance coverage of PhP200,000.00
    • No brand has a similar position.
      • Others focus on return for the period and low price
  • Peso Bond Funds Market Share AS OF DECEMBER 31, 2009 HCTV Peso Bond Fund, Inc. 75% Philam Bond Fund, Inc. 11% SunLife Prosperity Bond Fund, Inc. 9% Others 5%
  • Cumulative Long-Term Returns AS OF DECEMBER 31, 2009 41% Past 5 Years 15% Past 3 Years 110% Past 10 Years
  • Market Size
    • The industry’s total net asset value amounted to Php29.7 billion as of year end.
    • Despite most investors opting for virtually risk-free investments in a year that was marked with uncertainty, the peso bond fund industry grew by 2.84% in 2009
    Source: ICAP, SEC
  • Peso Bond Fund Industry NAV Growth AS OF DECEMBER 31, 2009 2009 FY Change 2.84%
  • The Marketing Mix Strategy Part 2: Steps 6 to 10
  • 6a. Bond Fund category is dominated by 5 major funds Direct: Indirect: HCTV
  • 6b. Product Description
    • HCTV Peso Bond Fund, Inc. is a fixed-income mutual fund.
      • It is an open-end investment company that pools the money of its various shareholders and invests them in high grade fixed-income securities.
    • Shareholders are able to enjoy the benefit of professional fund management, diversified investment in a high-grade fixed-income portfolio and, higher income potential.
    • Plus, HCTV Peso Bond Fund, Inc. is the only mutual fund in the country that gives its eligible individual investors free life insurance coverage of PhP200,000.
  • Portfolio Composition Government Securities Medium Term, 35% Government Securities Long Term, 9% Corporate Notes and Bonds – 30% Index Bond Fund, 1% Duration 2.94 Government Securities Short Term, 7% Money Market Instruments and Other Receivables, 12% Preferred Shares, 6%
  • Annual Performance vs Benchmark 91 d T-bill Php212.72 ALFM Peso Php243.26 3.65% 4.75% 2009 4.78% 8.01% 2005 5.85% 7.63% 2004 2.68% 5.16% 2007 4.26% 4.21% 2008 4.41% 13.44% 2006 91-Day TBill ALFM
  • 7. Price- HCTV is 100% premium priced/initial investment
    • Minimum Participation: P50,000  Min. Additional Participation: P10,000  Min. Holding Period: 180 days  Sales Load: 0  Management Fee: 1.5%  Early Redemption Fee: 1% 
    • HCTV is priced at 100 premium over Philam Peso bond Fund and Sunlife Prosperity Fund with aim of maximizing profits in all market segments
  • 8a. Promo
  •  
  •  
  • Competitor’s Ads
  •  
  • 9. Place
    • The product is distributed nationwide, uses the 900++ BPI branches as platform to reach clients.
    • Upon completion of the project (within the year), clients can access their account anytime, anywhere through the online channel of the bank.
    • Inked partnership with other institutions to distribute the product (Citibank, BPI Capital, etc.) ehavioral
  • HCTV Bond Fund is a Market Leader
    • HCTV’s aims is to continue dominating the bond fund market by instituting competitive strategies to maintain its substantial market share.
    • It capitalizes on a wide distribution channel through the BPI branches scattered around the country.
    • Tactically priced at premium and banks on the consistent performance/returns of the portfolio.
  • 5 Steps for Part 1 (PTM and Positioning)
    • HCTV PTM are “Individuals- baby boomers and Institutional-retirement funds ”
    • Who want to feel financially secured
    • Can choose Philam Bond Fund, etc.
    • Gap is all other mutual funds focus on the performance of the fund on a certain period
    • The market size is P 29.7 Billion. HCTV’s share of the pie stood at P22.27 Billion.
  • 5 Steps for Part 2 (Marketing Mix & Strategy)
    • HCTV Bond Fund
    • Is 100% premium
    • Uses newspaper, magazines, brochures and events
    • Is distributed nationwide
    • Uses a market leader strategy to win
  • 10 Step Marketing Plan for harold ceasar t. verayo June 2010 Rold ON TIME HCTV