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Foreign direct investments surge to $573M in February

FOREIGN DIRECT INVESTMENTS (FDI) surged anew in February, supported by strong placements in both debt and equities as players grew more confident about local prospects, the central bank reported yesterday.
FDIs totalled $573 million for the month, spelling a 46.4% increase from the $392 million tallied in February 2017, the Bangko Sentral ng Pilipinas (BSP) said. However, the tally slipped from January’s $919-million net inflow which was the highest in two months.
February inflows soared amid strong interest in equities among foreign investors, resulting in net yields worth $96 million, up 55% from the $62 million in retained capital a year ago.
Gross placements reached $114 million, which was offset by $18 million in outbound funds. These compare to $79 million inflows cancelled out by $17 million in withdrawn capital in April 2017.
Bulk of the investments came from Hong Kong, the United States, China, the Netherlands and Japan. These placements went into art, entertainment and recreation; real estate; manufacturing; construction; and electricity, gas, steam and air-conditioning supply activities, the central bank said.
Meanwhile, bets on debt instruments also soared to $412 million, higher than the $381 million investments received in January and rising by 56.3% from the $264 million received a year prior.
On the other hand, reinvested earnings steadied at $65 million for the second straight month, and went down from $66 million last year.
The two-month FDI tally now stands at $1.493 billion, spelling a 52.6% jump from just $978 million in the comparable period last year.
“The sustained investment inflows reflect investor confidence in the country’s sound macroeconomic fundamentals and growth prospects,” the BSP said in a statement.
Two observers said the foreign investors are particularly bullish about investing in the Philippines in light of medium- to long-term growth prospects.
“I believe the government’s ‘Build, Build, Build’ program and TRAIN have been instrumental in convincing foreign investors that the government’s economic reforms are moving in the right direction and pace,” said Angelo B. Taningco, economist at Security Bank Corp.
“I think both fiscal stimulus and accommodative monetary policy have helped encourage FDIs as both are pro-growth policies.”
The economy expanded by 6.8% during the first quarter led by industry expansion, the Philippine Statistics Authority reported on Thursday. This compares to the government’s 7-8% growth goal, largely supported by P1.068 trillion in infrastructure investments for 2018.
Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, added that the Philippines’ strong fiscal balance, manageable balance of payments, strong domestic consumption growth, and a declining debt burden are boosting investor optimism. He sees the BSP’s $8.2-billion target for 2018 as attainable.
Mr. Taningco even expects FDIs to overshoot the central bank’s projection to hit $10 billion, matching the total in 2017, which was a banner year.
Investments in the Philippines provide additional capital for the local economy, creating more jobs for Filipinos and spurring domestic activity as these fuel business expansions. — Melissa Luz T. Lopez

From prayer to party


By Zsarlene B. Chua, Reporter
That the Philippines is a Christian country — more than 90% of the population is Christian, with over 80% Roman Catholic — was the inevitable result of the country’s centuries of experience as a colony under Spain and then America. It then follows that Filipinos see Israel — the land where most of the people written about in the Bible were born and walked, including the religion’s central figure, Jesus Christ — as a special place worthy of any bucket list.
“Four years ago, I realized how fundamental the tourism relationship between the Israel and the Philippines is… it comes naturally together,” said Effie Ben Matityau, Israel’s ambassador to the Philippines, during the embassy’s tourism road show on April 24 at the Makati Shangri-La, Manila hotel.
He added that Israel’s ministry of tourism was initially skeptical about the Manila market, but the rising number of tourists coming from the Philippines changed their minds: according to the ministry’s data, there’s been a 120% increase in Filipino travelers to Israel in January 2018 compared to the same month last year.
“Our biggest game changer would be the introduction of direct flights from Manila to Tel Aviv,” he said before explaining that the lack of flights remains a challenge though they are serviced by other airlines like Turkish Airlines.
But that might not remain much of a challenge any longer as Hassan Madah, director of India and the Philippines for Israel’s Ministry of Tourism, reported at the same road show that they have been in talks with the Philippine flag carrier to introduce direct flights to Israel and that Philippine Airlines (PAL) “is really considering it.”
“We’re optimistic PAL will fly direct either this year or next year,” he said.
Mr. Madah said the ministry has seen a 42% jump in the number of visitors from the Philippines from January to March compared to the same period last year.
They are expecting to welcome more than 30,000 visitors by the end of 2018.
VISA-FREE TRAVEL
Filipinos going to Israel need not apply for a visa prior to the trip as they can travel visa-free for 90 days within the country — they only need to be interviewed at their port of entry. Likewise, Israelis coming to the Philippines can stay visa-free for 59 days.
Unbeknownst to many, the visa-free policy is a testament to a long-standing friendship between the two countries, starting in the 1930s when President Manuel L. Quezon’s open door policy saw the country welcoming more than a thousand Jewish refugees fleeing from the Holocaust.
Mr. Quezon planned to welcome more than 100,000 Jews to the country and initially issued 10,000 visas, but these plans were shattered with Japan’s invasion and occupation of the Philippines during World War II.
A few decades later, the Philippines was the only Asian country among the 33 that voted in favor of United Nations resolution 181 concerning the partition of the Palestinian state and the creation of the state of Israel in 1947.
GOING AROUND THE HOLY LAND
Much of Israel’s pull for tourists lies in its religious sites as many people come to the small country straddled between Asia and Africa to retrace the steps of Jesus and other religious icons and its tourism ministry is well aware of that fact as it promotes pilgrimage tours.
While there are those who make their pilgrimage to the Holy Land the hard way — like Christian preacher Arthur Blessit who, in 1977, travelled 22,500 kilometers through five continents and 30 countries, all the while carrying a wooden cross before arriving in Jerusalem and preaching in the Garden Tomb — the majority do the pilgrimage in relative comfort, travelling via tour buses and staying in hotels.
Pilgrims can start their journey in Jerusalem, a city whose more than 3,000 year history is important to Christians. Jesus was presented to the temples of Jerusalem when he was a young boy and he continued to preach and heal in the city in his adulthood.
It was also within Jerusalem that Jesus and his disciples held the Last Supper after which he was arrested in the nearby Garden of Gethsemane at the foot of the Mount of Olives and was crucified in Golgotha. Modern day visitors can also visit the Chapel of the Angel within the Garden Tomb, where Jesus is said to have been buried.
South of Jerusalem lies Bethlehem, the birthplace and of both Jesus and King David. There pilgrims can visit the Church of the Nativity, the oldest continuously worshipped site in Christianity, which is run jointly by the Greek Orthodox Church, the Armenian Apostolic Church, and the Roman Catholic Church. While Bethlehem is considered a territory of the Palestinian Authority and crossing over might be a difficult matter due to the conflict between the two states, the Israel Ministry of Tourism is promoting cooperation between private Israeli and Palestinian partners to develop crossing points between the two sites.
Also in Palestinian territory is the biblical City of Jericho, the Mount of Temptation where Satan offered Jesus the kingdom and the world, and the town of Bethany, where Lazarus was buried and was later revived.
ISRAEL BEYOND RELIGION
But as Mr. Madah said during the roadshow, Israel is more than just a country for pilgrims as it is also home to one of the world’s top party cities, Tel Aviv.
“The city never sleeps,” said Mr. Madah.
Tel Aviv is a vibrant city with stretches of golden beach including Frishman beach, colorful markets, a flourishing culinary scene, and outstanding nightlife.
And with an average summer temperature of 24° to 30° Celsius and winter temperatures of between 9° to 17° Celsius, there is never a bad time to visit the party city.
Lonely Planet once described Tel Aviv as “one of the world’s Top 10 hedonistic city breaks.”
Health buffs can also visit the Dead Sea, located a few hours away from Jerusalem. Considered the lowest place on Earth (it is 428 meters below sea level) and the second saltiest body of water in the world after the Don Juan pond in Antarctica, the Dead Sea is known for the healing powers of its cobalt blue waters.
Mr. Madah said that even breathing the air from the lake will give a person a good night’s sleep. He suggested that people visiting the Dead Sea stay the night in the area.
For those who love the outdoors, visit the Negev, Israel’s desert, located in the south of the country. There one can experience desert biking and 4×4 driving. Abraham — biblical figure considered the founder of three of the world’s great religions, Judaism, Christianity, and Islam — was said to have lived in that desert after being banished from Egypt.
Eilat, the country’s southernmost city which located at the northern tip of the Red Sea, is Israel’s famed resort city drawing nearly 2.8 million visitors a year.
Promising an average of 360 sunny days a year, it is summer all year round in Eilat, which has 12,500 hotel rooms, 150 restaurants, and a choice between nearly 20 beaches.
In contrast, Israel’s north attracts those who prefer vineyards over beaches as it is home to almost 100 vineyards and wineries, and is where Israel’s number one ski resort, Mount Harmon, is located.
Northern Israel, considered the country’s best-kept secret, has vast green landscapes with rolling hills and valleys, quaint small towns and historic sites like Galilee and Nazareth. Haifa, the country’s third largest city and home to the Bahai World Center, a UNESCO world heritage site, is also located in Northern Israel.
So after all the prayers and other religous obligations are done, Filipino tourists can go for a swim, party the night away, ski down a mountain, or settle down for well-earned glass of Israeli wine.

SMC recurring profit up 31% in 1st quarter

SAN MIGUEL CORP. (SMC) grew its consolidated recurring profit by a third in the first quarter of 2018, fueled by the performance of its liquor, beer, food, packaging, and fuel businesses.
The diversified conglomerate booked a consolidated recurring net income of P19.4 billion for the first three months of the year, up by 31% from the same period a year ago, it said in a statement on Thursday.
This followed a 20% jump in revenues to P234.3 billion. Operating income accordingly climbed 19% to P32.7 billion for the period.
Revenues of Petron Corp., SMC’s fuel and oil unit, improved by 21% to P129.1 billion, versus the P106.4 billion posted in the same period a year ago. The company saw strong domestic sales volumes and improved operating efficiencies in the Philippines and Malaysia, resulting to a 4% uptick in net income to P5.8 billion.
San Miguel Food and Beverage, Inc. (SMFBI), previously known as San Miguel Pure Foods Co., Inc. (SMPFC), delivered P29.3 billion in revenues, 12% higher year on year. The company attributed this to the strong growth momentum of its poultry and meats and value-added meats businesses, boosted by higher selling prices and better volumes.
Higher costs of major raw materials, however, tempered the unit’s profit growth, which ended 7% lower to P1.4 billion.
“(The decrease) was primarily due to foreign exchange losses caused by the peso depreciation against the US dollar along with market-to-market losses from raw material imports,” SMC said.
Excluding foreign exchange losses, SMC said SMFBI’s net income would have been slightly higher at P1.5 billion.
San Miguel Brewery, Inc. generated P29.8 billion in revenues for the quarter, as it sold 65 million cases. The company benefited from new marketing campaigns and the implementation of trade and consumer promos. Net income for the beer unit went up 26% to P5.7 billion.
Ginebra San Miguel, Inc.’s sales volumes went up by a fifth for the three months as well, as the company implemented campaigns to boost core brands Ginebra San Miguel and Vino Kulafu. Revenues then rose 24% to P6.4 billion, with net income reaching P255 million, 97% higher year on year.
SMC recently merged its liquor and beer businesses with SMPFC. The group is set to conduct a $3.6-billion follow-on offering this year, in order to meet the minimum public ownership requirement for the newly consolidated firm as it currently only has a public float of 4.13%.
Meanwhile, sales revenues of San Miguel Yamamura Packaging Group expanded by 25% to P8.6 billion, following higher sales of glass plastics, and flexibles. The company also noted the continued growth of its Australian operations.
Shares in SMC picked up 80 centavos or 0.59% to close at P136.80 each at the Philippine Stock Exchange on Thursday. — Arra B. Francia

GT Capital implements Metro Park master plan

By Arra B. Francia, Reporter
GT CAPITAL HOLDINGS, Inc. is now implementing the master plan for its 40-hectare mixed use estate in the Bay Area called Metro Park, where it recently opened a new office building for the business process outsourcing sector.
“The land area in the reclaimed area is 40 hectares, so they’re now doing the master plan for the full development,” GT Capital President Carmelo Maria L. Bautista told reporters after the company’s annual shareholders’ meeting in Makati City on Wednesday.
Metro Park is being developed by Federal Land, Inc., one of GT Capital’s property units. The company has so far opened one office building called iMet in the mixed use project. iMet is registered with the Philippine Economic Zone Authority and has a total of 10 office floors with a floor plate of 2,029 square meters each.
Mr. Bautista noted there are also six towers and a retail mall being developed in the area.
“For the mall area, there was a gas station that’s now being redeveloped into a retail mall,” the GT Capital executive said. This will be connected to GT Capital’s existing Blue Wave mall in the area.
GT Capital is one of several companies developing office buildings in the Bay Area.
A quarterly property report by Colliers International Philippines stated that the Bay Area accounted for 36% of the 470,000 sq.m. of office spaces completed in the first quarter of 2018. The Bay Area is also emerging as the preferred location of Philippine Offshore Gaming Operators (POGOs), given the local government’s openness to such companies.
GT Capital’s property business, which includes Federal Land and Property Company of Friends, Inc., delivered P18.2 billion in consolidated revenues in 2017. Combined net income from the two firms amounted to P2.1 billion.
The George S.K. Ty-led conglomerate said it is currently looking for opportunities in other sectors which will create synergies with its existing businesses. Its core interests include banking through Metropolitan Bank and Trust Company, insurance through AXA Life Insurance Corp., automotives with Toyota Motor Philippines, Corp. It is also the second largest shareholder in Manuel V. Pangilinan-led Metro Pacific Investments Corp.
The company’s core net income jumped 29% to P15 billion in 2017, following a 19% rise in revenues to P239.8 billion for the period.
Shares in GT Capital gained P19 or 1.91% to close at P1,016 each at the Philippine Stock Exchange on Thursday.

Vista Land Q1 earnings jump 13% on higher reservation sales

VISTA LAND and Lifescapes, Inc. (VLL)’s attributable profit grew by 13% in the first three months of 2018, supported by its residential business alongside the ramp up of its leasing segment.
The Villar-led property developer generated P2.54 billion in net income attributable to the parent for the first quarter, higher than the P2.26 billion it booked in the same period a year ago.
“We are pleased to have been able to achieve solid growth over the past years and it should be the same this year as we take advantage of the various synergies that we have unlocked among our businesses,” VLL Chairman Manuel B. Villar was quoted in a statement as saying.
Revenues jumped 12% to P10.1 billion, 83% of which came from the residential segment or around P8.4 billion. Its Camella brand, which offers affordable house and lots primarily in the provinces, continued to see strong sales, providing 75% of the total real estate revenues for the quarter.
The company recorded a 12% increase in reservation sales to P18 billion, equivalent to around 9,000 units. This places VLL on track to reach its full year target of more than P72 billion for reservation sales.
A total of 18 residential projects valued at P12.4 billion were launched during the quarter. Of this, 15 catered to the low and affordable segment while three were condominiums. VLL has scheduled P50 billion worth of projects in the pipeline for this year, although President and Chief Executive Officer Manuel Paolo A. Villar said they are confident of easily topping this target.
Meanwhile, VLL’s leasing revenues went up by 14% to P1.6 billion, or 17% of the company’s total revenues.
The company is currently boosting its commercial leasing segment, in a bid to have 1.4 million square meters of leasable space by the end of the year. No additional leasable spaces were added for the quarter as most of VLL’s projects will be completed by the fourth quarter, according to Mr. Villar.
VLL has already spent P11.8 billion out of the P45-50 billion capital expenditures it has committed to spend for the year. While most of the budget will be funded by internally generated income, Mr. Villar said they may tap the bond market in the third quarter for the remaining balance.
“We’re gonna borrow in peso to cover our capex, which will be a combination of bonds and local bank loans… We’ll probably borrow maybe another P10 billion, just below P10 billion,” Mr. Villar said in a press briefing in Taguig City late Wednesday.
The VLL executive said the company is also looking at opportunities to borrow in dollar. Last year, the company raised $350 million, mostly to refinance existing debt.
Mr. Villar said the overall business environment continues to look good for the rest of the year despite the rising inflation and weakening peso.
“There’s inflation, but that’s okay because the economy is stronger. Hopefully it moderates next year… In our market, depreciation helps some of our customers because 60% of our sales are overseas Filipinos. Many of them have foreign currencies, especially dollar, so our market benefits from depreciation,” he said.
Shares in VLL fell by seven centavos or 1.04% to close at P6.68 each at the stock exchange on Thursday. — Arra B. Francia

PLDT core profit increases in Q1

PLDT, Inc. reported higher core profit in the first quarter, driven by a turnaround in its wireless business.
In a statement, PLDT said its reported first quarter net income surged 39% to P6.9 billion, while core income jumped 13% to P6 billion in the first three months of 2018. The telco followed the new accounting standards starting January 1, 2018.
Total revenues went up 4% to P38.63 billion, of which service revenues inched up 1% to P35.9 billion and non-service revenues soared 86% to P2.76 billion.
“I think we can do better. There are always expectations given the history of PLDT. I think it’s fair to state that quite a bit of work remains ahead of us,” PLDT Chairman and CEO Manuel V. Pangilinan said during a briefing on Thursday.
PLDT also maintained its full-year core income target of P23-24 billion for 2018. It is also raising its capital expenditure budget to P58 billion this year.
PLDT Home revenues increased by 14% year on year to P8.9 billion, driven by strong subscriber take up of home broadband services. The Enterprise Group recorded P9.2 billion in revenues, up 7%.
After eight consecutive quarters of decline, the wireless business showed improvement. The individual business of Smart, TNT and Sun contributed P14.8 billion in service revenues in the first quarter, 2% higher than the same period a year ago, driven by higher data revenues. During the same period last year, the wireless business declined by 18%.
Data, broadband and digital platforms saw revenues rise 13% to P18.3 billion as of end-March. This accounted for 50% of total service revenues in the first quarter of 2018, compared from 45% a year ago.
Mobile Internet revenues increased 29% to P5.9 billion, while Home broadband revenues jumped 18% to P5.6 billion. Corporate data and data center revenues increased 6% to P5.2 billion.
PLDT Chief Revenue Officer Ernesto R. Alberto said the data plans they offer, like the Giga50, have helped increase data usage among its customers.
“We’re seeing more data usage on the plans we give out,” he said. PLDT said there were 56 million mobile data users for the quarter.
Earlier this week, PLDT completed the sale of most of its shares in German e-commerce investor Rocket Internet. Rocket Internet has accepted 6,800,000 Rocket shares tendered by PLDT subsidiary PLDT Online Investments Pte. Ltd. at €24 per share or a total of €163.2 million.
PLDT said estimated the gain from this transaction at P1.4 billion which will be booked in the second quarter.
Mr. Pangilinan had said that there is “no pressure” to divest the remaining one third of its stake in the German company, and that the divestment would depend on the movement of the share price of Rocket. The funds from the divestment will be used to fund capex.
Shares in PLDT went up by P34 or 2.53% to close at P1,376 apiece.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Lea focuses on folk songs in new album

TONY AWARD-winning singer/actress Lea Salonga has released her 10th studio album, Bahaghari (“rainbow” in Filipino) featuring Filipino folk songs.
The 15-track album described as a “cultural celebration in the age of globalization,” includes well-loved folk songs such as “Atin Cu Pung Singsing,” “Paru-parong Bukid,” “Ili ili Tulog Anay,” and “Pamulinawen,” among others.
“The music in Bahaghari represents much of my own childhood,” Ms. Salonga said in a release.
“Filipino folk songs are extremely important as they also represent our cultural identity. In an ever-shrinking world, culture needs to be celebrated,” she added.
Bahaghari features songs in six regional languages — Ilocano, Kapampangan, Bicolano, Bisaya, Ilonggo, and Tagalog — and “harkens back to a time when culture and tradition were inherited by the next generation through stories and songs,” said the release.
“Like the different colors of a rainbow, the various tracks collectively represent the genuine and unique culture of the country,” the release explained.
The album, which was launched nationwide on May 7 via LeaSalonga.com, is released by GLP Music, a New York-based label created to introduce children to world languages and culture through music.
Produced by Ryan Cayabyab, the album was arranged by conductor (and Ms. Salonga’s brother) Gerard Salonga, with the booklet written by writer/director Floy Quintos, and illustrations by graphic artist Lucille Tenazas.
“I highly endorse the music tracks to educators and their students in the primary, secondary and tertiary levels. To all Filipinos, I invite you to listen and rediscover our cultural heritage through the songs in this anthology,” said Mr. Cayabyab in the release.
The album is also available on iTunes, Spotify, and Google Play. GLP Music will be donating Bahaghari CDs to teachers across the country. — ZBC

Whisky, brandy sales lift Emperador Q1 income

Emperador-FB
Photo: Facebook/@EmperadorBrandyPhilippines

EMPERADOR, Inc.’s net income went up 11% to P1.66 billion in the first three months of 2018, driven by growth from international operations.
In a statement, the liquor arm of Alliance Global, Inc. said revenues likewise increased 8.5% to P9.7 billion. The company has yet to submit its first quarter financial statement to regulators.
“We are happy that Emperador is on to a good start with good growth coming from international operations — Scotch whisky and Spanish brandy — showing growth momentum moving forward. The single malt whisky business, in particular, continues to enjoy greater demand across all regions globally. Likewise, the brandy business continues to geographically expand its reach on the back of greater distribution, visibility and availability,” Emperador, Inc. President Winston S. Co was quoted as saying.
The company’s portfolio includes Spanish brandies such as Fundador, and Scotch whisky brands The Dalmore and Jura single malts.
“In the Philippines, we have strong initiatives to rekindle the domestic brandy business. We envision robust and stable international and domestic businesses in the long run,” Mr. Co said.
In 2017, Emperador reported a net income of P6.33 billion, 18% lower than the P7.7 billion recorded in the previous year, dragged by higher cost of goods sold and marketing expenses coupled with unrealized foreign currency losses.
Revenues rose 4% to P42.65 billion last year, mainly driven by its Scotch whisky and brandy segments. Cost and expenses also went up 10% to P34.82 billion.

Watch movies under the stars

SPEND THE weekend watching films under the stars as Circuit Makati holds its first Cine Circuit Indie Film Festival, from May 11 to 13 at the Hippodromo of the Globe Circuit Events Ground.
To be screened are independent films, from romantic comedy to drama and thrillers.
Admission to the festival is free though registration at the site is required.
Among the eight films featured in the festival are: 100 Tula Para Kay Stella (2017) by Jason Paul Laxamana, which tells the story of a stuttering boy who writes poems to win the heart of Stella; ABNKKBSNPL AKO (2014) by Mark Meilly, based on the best-selling autobiography of Bob Ong; and Luck at First Sight (2017) by Dan Villegas, where a man thinks he will get lucky with a “lucky charm” but then meets a woman who provides him with luck just by being near him.
Considered the highest-grossing independent film in the country, having earned P300 million in three weeks, Sigrid Andrea P. Bernardo’s Kita Kita (2017) is a tale about a Filipino tour guide in Japan who goes blind and the man who falls in love with her.
A thriller for perfect for summer nights comes in the form of Binhi (2015) by Pedring Lopez, which tells the story about a young family who move to Baguio but experience strange things inside their new home.
Then there is Cinemalaya entry Kusina (2016), by David R. Corpuz and Cenon Palomares, about Juanita and her kitchen which becomes the silent witness to her life and love as she prepares dishes for her family, friends, and even strangers.
The romance This Time (2016) by Nuel C. Naval, is about two childhood friends who only meet during summer vacations and develops feelings for each other but the long-distance relationship puts a strain on their feelings.
Finally, there is Camp Sawi (2016), a romantic comedy by Irene Villamor. The film follows a band of brokenhearted women who end up in a resort which specializes in helping people move on.
Cine Circuit Indie Film Festival runs from May 11-13 at Circuit Makati. For more information and for the festival schedule, visit www.circuitmakati.com. — ZBC

Pilmico to open Bukidnon training center for farmers

ABOITIZ Equity Ventures, Inc.’s (AEV) food and agribusiness arm, Pilmico Foods Corp. and the Aboitiz Foundation will open a training complex for livestock farmers in Maramag, Bukidnon by August.
In a statement on Thursday, Pilmico and Aboitiz Foundation said that the P10-million research and development facility is expected to improve livestock raising and management in Maramag.
Pilmico Assistant Vice-President for Feeds-Sales Jefferson C. Abian said that the facility will encourage knowledge-sharing among backyard farmers, specialists and students participating in production.
The facility will focus on aquaculture, poultry and swine.
“[This will be] a modern facility complete with the latest tools and technologies on swine genetics, animal nutrition, artificial insemination and farm management, which the whole community can benefit from,” he added.
The facility will be built inside Central Mindanao University (CMU).
Aboitiz Foundation First Vice-President and Chief Operating Officer Maribeth L. Marasigan said in a speech at CMU said that the company is seeking to advance the community’s development.
“I imagine the livestock training complex to be a center of learning and growth in this area as I see our learners — which include the students, farmers, and even specialists — as future innovators and drivers of positive change,” she added.
AEV shares on Thursday closed down P0.40 or 0.67% at P59.30. — Anna Gabriela A. Mogato

CPG’s PHirst launches project in Lipa, Batangas

CENTURY Properties Group, Inc. (CPG) is developing a 20-hectare project in Lipa, Batangas, under its affordable housing brand PHirst Park Homes.
In a statement, CPG said project, located in Barangay San Lucas, Lipa City, will offer 1,867 units with an estimated value of P2.8 billion.
“PHirst Park Homes raised the bar in the category of affordable home ownership by offering more value at very attainable price points. This is what we will make available in Lipa, where we are bringing our Tanza concept but with enhanced offerings,” PHirst Park Homes President Ricky Celis was quoted as saying in a statement.
The development is located is behind the 470-hectare industrial park Lima Technology Center and a 30-minute drive from the Light Industry and Science Park III.
PHirst said the development will showcase a “home-in-a-park experience,” with amenities catering to health and fitness. Homes will have a perimeter fence and gate, finished ceiling, flooring and bathrooms, a garden or carport provision and an expandable unit layout.
There are four types of home configurations available. A 40-square meter home will start at P1.2 million with a P9,000 monthly amortization.
PHirst Park Homes is a partnership between CPG and Japanese conglomerate Mitsubishi Corp. It sold 1,200 units worth P1.4 billion at its first project, located in Tanza, Cavite.
In 2017, CPG saw its profit drop by 11% to P649.9 million.
The listed firm known for its development of high-rise luxury projects ventured into the affordable housing market last year, as it aimed to meet the housing backlog in the country amid a growing middle class. — D.A. Valdez

Lack of Wall St. back-office deters mainstream crypto investments

NEW YORK — Mundane back-office concerns are giving pause to potential investors in digital currency hedge funds who have otherwise warmed up to the volatile asset class.
Traditional custodian banks such as Bank of New York Mellon Corp. and State Street Corp. do not yet handle crypto assets like Bitcoin. That means hedge funds have been forced far from Wall Street to places like Springfield, Pennsylvania, or Murray, Kentucky, to find auditors, custodians and record-keepers, according to fund disclosures and executives.
Dealing with this collection of small and relatively unknown firms has sparked concern among potential investors and their advisers, who worry about a lack of scale, history and brand name. That, in turn, is keeping a lid on some new investment in digital currencies.
The usual safeguards “are either non-existent or shaky as of yet,” said Nick Mitsiou of $55-billion asset manager LGT Capital Partners.
Chris Solarz, who helps institutional investors pick hedge funds for consultant Cliffwater LLC, called infrastructure for crypto hedge funds “pretty green.”
Both LGT and Cliffwater have so far steered institutional clients clear of cryptocurrency funds, partly because of concerns about underdeveloped infrastructure.
Pension funds, endowments and other large investors generally expect the hedge funds they entrust their money with to use major banks and accounting firms as custodians, administrators and auditors to ensure their fund investments are safe.
Hedge funds are required by the US Securities and Exchange Commission to use a qualified custodian, which includes federally insured banks and registered broker-dealers, once their assets exceed $150 million.
The example of Bernard Madoff, whose massive Ponzi scheme was enabled in part by an obscure accountant, has only increased investors’ wariness.
After Bitcoin hit almost $20,000 in December, more than 10 times what it was worth five months before, the SEC highlighted “significant investor protection issues that need to be examined,” including valuation, liquidity and custody for cryptocurrency funds.
A few large service providers are considering getting into the digital currency market, industry sources say, including State Street, a spokesman told Reuters.
That means crypto investors have little choice but to go with smaller, little-known firms for now.
Las Vegas-based Cryptocurrency Capital LLC uses two small custodians: Murray, Kentucky-based Kingdom Trust Co., for US dollars, and Xapo, Inc., a company that provides Bitcoin storage with offices in Palo Alto, Zurich and Gibraltar.
Xapo is run by former financial services professionals who “understand the responsibility that comes with handling other people’s money,” President Ted Rogers said.
Kingdom Trust, which was bought by San Francisco-based tech firm BitGo in January, when it had $12 billion in assets under custody, did not respond to requests for comment. Kingdom Trust’s website says it is an independent qualified custodian regulated by the state of South Dakota.
“We consider (Kingdom Trust) one of the most progressive custodians in the industry,” Cryptocurrency Capital cofounder Paul Savchuk said in an e-mail.
For administration services, Florida-based General Crypto LP found Triple Leo Consulting, a record-keeper in Springfield, Pennsylvania. General Crypto cofounder Logan Kugler declined to comment while Triple Leo did not respond to e-mail.
Cryptocurrency hedge fund firm Tetras Capital, which set up shop in New York last summer, initially used its own process to safeguard Bitcoin and other assets, according to founding partner Tom Garrambone, but later hired small, third-party custodians, which he declined to name for security reasons.
Even the largest crypto funds rely on small service providers.
Polychain Capital and BlockTower Capital Advisors, whose clients include elite venture capital firms Andreessen Horowitz and Union Square Ventures, have worked with Denver-based administrator MG Stover & Co. and Cleveland-based auditor Cohen & Co., both popular among crypto funds.
MG Stover has 49 employees and $2.1 billion in assets under administration from crypto funds of $8.3 billion overall, CEO Matthew Stover said. State Street, by comparison, has $33 trillion in assets under custody and administration. BlockTower did not respond to requests for comment. Cohen & Co. declined to comment.
Small, privately held custodians are overseen by state regulators and subject to the SEC’s definition of which firms are “qualified.” Large custodians are also often publicly traded banks, leading to increased disclosure requirements and federal regulatory scrutiny.
That does not mean they are infallible. In 2015, a computer glitch at BNY Mellon delayed how billions of dollars of assets in funds were valued, causing turmoil. Disputes over such matters are not unknown.
Nevertheless, there is potential for clashes between crypto investors and managers as the asset class develops.
On March 26, Los Angeles-area investor Harry Greenhouse sued Polychain in Delaware court, requesting information about the valuation procedures it had used to determine how much money he was owed when cashing out from the fund in January.
Greenhouse claimed that certain assets may have been improperly valued, reducing the amount he received. A spokesman for Polychain called the lawsuit, which mentioned valuation services by MG Stover, “spurious.” MG Stover declined to comment on the lawsuit.
John Ward of investor advisory company Duff & Phelps LLC said any fund without a detailed valuation policy is “a red flag.”
“It is critical,” Ward said, “to conduct a thorough operational due diligence before you invest.” — Reuters