Philippines Strategy:Politics,As fluid as ever for the May 2016presidential elections

Outlook

While the election race for May 2016 has become more unclear of theoutcome, we continue to take solace to the fact that all five of the seriouspresidential candidates are an upgrade over the incumbent in our view. Wehave this belief, whether it was due to track record of execution (Binay,Duterte), reform and integrity (Poe, Santiago) or qualification (Roxas).

For this reason, we think the May 2016 elections should be a net positive to thePhilippines, for which we still hold overweight stance. Our top picks in order ofpreference currently would be GTCAP, SMPH, ALI, PGOLD, and MPI