2 weeks Ago By Rappler.com
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rapplerAds.displayAd( "mobile-middle-1" );MANILA, Philippines – Picking an investment fund can be tricky, but some funds have proven themselves more than others.The CFA Society Philippines has released its annual list of the best-managed funds in the country, highlighting those that delivered strong, risk-adjusted returns while managing market volatility.
A total of 170 qualified funds competed for recognition this year, spanning categories such as money market funds, bond funds, balanced funds, and equity funds. For the first time, money market funds, global feeder funds, and local equity thematic funds were included in the awards.At its core, an investment fund is a pool of money managed by a financial institution, such as a bank for unit investment trust funds or investment house for mutual funds.
These funds are handled by professional fund managers who decide how to allocate the money across different asset classes like stocks, bonds, or other fixed income instruments to generate returns. [READ: EXPLAINER: How mutual funds and UITFs make investing beginner-friendly]Investors can participate by opening an account and selecting a fund based on their financial goals and risk appetite. In fact, the purpose of creating a list like this is to show that there are a number of good funds out there, whether you’re playing it safe or looking for a riskier investment that could give a bigger return.
This year, BPI emerged as the biggest winner, taking home five awards, including wins in the inaugural money market, local equity thematic, and global equity index feeder fund categories. Metrobank followed with three awards, with its Metro High Dividend Yield Fund earning recognition as the top peso-denominated equity fund. Equity funds, particularly those invested in local stocks, tend to be among the most popular choices for retail investors.
Interestingly, none of the funds managed by BDO Unibank, the country’s largest bank by asset size, made it to the list.Here are the top-performing funds for 2025, as recognized by the CFA Society Philippines:Money Market FundsPeso FVPL – Chinabank Cash FundDollar FVPL – BPI US Dollar Short Term FundPeso HTM – Sun Life Prosperity Peso Starter Fund View this post on Instagram A post shared by CFA Society Philippines (@cfasocietyphilippines)Bond Fundswindow.rapplerAds.
displayAd( "middle-2" );window.rapplerAds.displayAd( "mobile-middle-2" );Intermediate-Term (Peso FVPL) – PNB Profit Peso Bond FundIntermediate-Term (USD FVPL) – Metro$ Short Term Bond FundMedium-Term (Peso FVPL) – AUB Peso Investment FundMedium-Term (Dollar FVPL) – AUB Gold Dollar FundMedium-Term (Peso HTM) – ALFM Peso Bond FundLong-Term (Peso FVPL) – SB Peso Bond FundLong-Term (Dollar FVPL) – Chinabank Dollar Fixed Income Fund View this post on Instagram A post shared by CFA Society Philippines (@cfasocietyphilippines)Balanced and Equity FundsBalanced (Peso FVPL) – AB Capital Balanced FundBalanced (Dollar FVPL) – Sun Life Dollar Advantage FundEquity (Peso) – Metro High Dividend Yield FundEquity (Dollar) – BPI Invest Global Equity Fund-of-FundsEquity Index (Peso) – SB Philippine Equity Index Fund View this post on Instagram A post shared by CFA Society Philippines (@cfasocietyphilippines)Global and Thematic FundsGlobal Equity Feeder (Peso) – ATRAM Global Technology Feeder FundGlobal Equity Feeder (Dollar) – BPI Invest European Equity Feeder FundLocal Equity Thematic (Peso) – BPI Philippine Infrastructure Equity Index FundGlobal Fixed Income Feeder (Dollar) – Metro$ US Investment Grade Corporate Bond Feeder FundGlobal Equity Index Feeder (Dollar) – BPI US Equity Index Feeder Fund View this post on Instagram A post shared by CFA Society Philippines (@cfasocietyphilippines)How were these funds selected?It’s important that we emphasize our point earlier: the best-performing fund isn’t necessarily the one with the highest returns.
The CFA Society Philippines evaluated the funds based on risk-adjusted performance, which takes into account both returns and volatility.For actively managed funds, the key metric used was the Sortino ratio, which measures how much return a fund generates relative to its downside risk (or the likelihood of losses). Unlike the more well-known Sharpe ratio, which considers all volatility, the Sortino ratio specifically penalizes funds that experience negative fluctuations — which is the kind of price change that we don’t like — ensuring that funds are evaluated based on their ability to minimize losses while maximizing gains.
For passively managed index funds, the CFA Society Philippines used tracking error, a measure of how closely the fund follows the Philippine Stock Exchange Index (PSEi). A lower tracking error means the fund is accurately reflecting the index’s movements, which is ideal for index investors. [READ: What is the PSEi, and why does it matter?]window.
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displayAd( "mobile-middle-3" );Let’s also briefly explain some of the distinctions that the CFA Society Philippines has used. Fixed-income funds, such as money market and bond funds, are categorized by how they value their assets: pure FVPL (Fair Value Through Profit or Loss) funds track market prices daily, making them more transparent but also more volatile. Meanwhile, pure HTM (Held-to-Maturity) funds value bonds based on the original purchase price, assuming they’ll be held until maturity; this results in more stable valuations but may not reflect real-time market conditions.
These methods apply only to fixed-income funds since short-term debt instruments and bonds have fixed payouts and a set maturity date, unlike stocks. Investment funds are also labeled based on currency: peso-denominated funds are priced in pesos and usually invest in Philippine assets, making them ideal for local investors avoiding foreign exchange risk. Dollar-denominated funds are priced in US dollars and often focus on international assets.
This can offer exposure to global markets and serve as a hedge against peso depreciation — as long as you can tolerate the risk of forex fluctuations.“The CFA Society Philippines congratulates the winners of the Best Managed Funds of the Year Awards! More than just a recognition ceremony, it also acts as a quality benchmark for retail investors, highlighting funds that consistently manage risk and deliver strong returns,” said John Balce, president and chairman of CFA Society Philippines.“We believe that it does not only builds investor confidence but also drives fund managers to consistently maintain high standards, ensuring that retail investors have reliable options when entrusting their hard-earned money in building a financially-secure future for their families,” he added.
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