FINEX RESEARCH AND DEVELOPMENT FOUNDATION, INC.
(October 19, 2022)
FRANCISCO ED. LIM, Chairman
Dear FINEX Foundation Members:
I am pleased to report that the FINEX Research and Development Foundation had another very engaging and productive year despite the current pandemic situation.
I wish to commend the following Committees headed by their respective Chairpersons and Liaison Trustees who worked diligently and tirelessly to achieve the goals and objectives set for the year. These Committees are: the Business Education Committee under DJ de Jesus and Marivic Espano, the Environment Committee under Chito Oreta and Tonyboy Ongsiako, the Junior FINEX Committee under EJ Qua Hiansen, John Balce, and Benny Soliven, the Research Committee by Bing Bachoco and Romy Bernardo and the Social Involvement Committee under Menchu Seriña and Chit Manabat.
I would also like to thank and acknowledge the unwavering support and generous service extended by the Foundation’s other Trustees: Vice Chair Mike Guarin, Treasurer Ador Abrogena, Corporate Auditor Judith Lopez, Corporate Secretary Dick Baladad, Romy Bernardo, Marivic Espano, Ed Francisco, Chit Manabat, Riza Mantaring, Bing Matoto, Baby Nuesa, Tonyboy Ongsiako, Jeng Pascual, and Benny Soliven for steering the Foundation to where it is now. Our successes this year have deeper significance because of their input, perspective, and ongoing cooperation. Of course, special mention goes to our ever hardworking staff led by Mike Vinluan without whose administrative support our projects would have not been accomplished.
Financial Condition
Before I report on our projects and activities, may I report that your Foundation continues to be in healthy financial condition. Total cash and investments is Php74.7M, of which Php73.2M is under the restricted Capital Market Development Fund , which is an accumulation of dividends received and earnings therefrom from our investment in the PDS Group. Thanks to our sponsors who helped finance the projects that we conducted during the year. Our administrative expenses are being funded by our share in the membership dues paid to the FINEX Institute. Thanks to our Institute for this assistance.
The challenge is how to use the Capital Market Fund for the development of our capital market for which it was intended. We have to find projects worth supporting; of course, under terms and conditions that will imposed by the board in the prudent exercise of their discretion as stewards for the Fund.
PROJECTS
We have a myriad of activities and project and allow to present highlights of what we have done so far since the start of the year.
1. Business Education Committee (BEC)
The Committee, led by DJ de Jesus and Liason Trustee Marivic Espano, successfully conducted five (5) sessions of FINEX-CIBI FETP 2022 “Risk and Risk Management” held via Zoom last July 5, 19, August 2, 16, and 3, 2022. The details of this project, including the number of participants and the speakers and their respective topics, are now being shown on the screen.
[A total of 71 professors participated. Out of the 71 participants, 16 professors had completed the five sessions. Breakdown of participants per location is as follows:
NCR 23
Luzon 20
Visayas 17
Mindanao 11
TOTAL 71
Session topics and speakers were:
- Risks and Risk Management: The CFO Point of View Concepts and Practices – Mr. Jose Jerome Pascual III.
- Addressing Cyber Risks and Technological Risks – Mr. Mhycke Gallego of P&A Grant Thornton.
- Addressing the Regulatory Risks – Atty.Eleanor Rivera and Mr. Rhoderick Santos
- Addressing Climate Change – Related Risks – Mr. Romeo DJ De Jesus; The VUCA Phenomenon: It Can Be Handled – Ms. Marivic Españo; and Business Continuity Risks – Mr. Jose Jerome Pascual III.
- Case Study Group Presentations – Risk Framework Analysis, Responses, and Recommendations for Bonifacio College Case – Mr. Santiago Dumlao, Jr.
I am also happy to report that this year, after a two-year hiatus, the Deloitte-FINEX Outstanding Finance Educators Awards will push through. Just yesterday, your Board of Trustees approved the MOA with Navarro Amper & Co. (DELOITTE), which has been the exclusive partner over the years.
2. Environment Committee
The Committee, under Chairman Chito Oreta and Liaison Trustee Tonyboy Ongsiako, continues the bi-weekly release of “The Green Mind” – environmental quotes to promote awareness of this very important and relevant topic among FINEX members.
The Committee led the Day 3, Session 1 of the 2022 FINEX Annual Conference, which tackled an all-important topic, “ESG as a Value Creation Tool”. It was was attended in-person by 115 members and guests and 246 via Zoom.
3. Junior Finex Committee
- Voter Education
In an effort to develop an intelligent voting population as part of our civic duty to our country, the Committee, steered by under Chairpersons EJ Qua Hiansen, John Balce, and Liason Trustee Benny Soliven, started the year by advocating voter education among the youth. The Junior FINEX Committee, in partnership with the Good Governance Committee, hosted the “Your Vote Matters! Make it Right, Make it Count!” virtual event. The webinar was well received by different professional and school organizations. It had a total of 650 Zoom Attendees, 143 views on Facebook, and 18 Views on YouTube.
- JFINEX Congress
The committee met with student leaders from different school partners to discuss the ideas and activities that would be of interest to JFINEX students and to improve engagement. The committee is planning to hold a JFINEX congress which will work with representatives from partner schools. The career development sub-committee will be handling the programs that the committee will be offering to JFINEX that can help further their knowledge on different subject matters.
- Inter-Collegiate Finance Competition (ICFC)
Just yesterday, your Board approved the revival of the JFINEX Committee’s flagship project, the Inter-Collegiate Finance Competition (ICFC). The ICFC is the country’s most prestigious finance competition, aiming to identify the best finance teams among universities and colleges nationwide through a two-stage competition process. There will be a total of 54 competing schools. The competition will be held starting October 28, 2022, in seven sites: Baguio, Bacolod, Cagayan de Oro, Cebu, Davao, Pampanga, and Metro Manila. The top twenty (20) schools from these centers will advance to the finals, which will be held in Manila on November 25, 2022.
I am happy to report that JPMorgan Chase & Co., which has been JFINEX’s exclusive partner in this prestigious competition over the years, has confirmed its full sponsorship with the amount of Php 1.6M for the 22nd Inter-Collegiate Finance Competition (ICFC). The JFINEX Committee is also partnering with CFA Philippines and Institute of Management Accountants Philippines as Knowledge Partners for the competition. Likewise, this 22nd ICFC competition proceedings will be automated by the NOAH Systems Application through the sponsorship of Forecasting and Planning Technology Inc. | NOAH as the official Technology Partner.
4. Research Committee
The Research Committee, under the leadership of Chairman Bing Bachoco and Liaison Trustee Romy Bernardo, released the 2nd volume of the FINEX Journal, with the theme “Financial Technology”, on May 18, 2022 during the GMM with eleven (11) articles, mostly from the FINEX ICT Committee members, which are now being flashed on the screen:
| Title | Author/s | |
| 1 | Financial Technology: Paving the way for an inclusive Philippine Economy | Martha Sazon |
| 2 | From Bricks to Clicks: Customer Centricity at the Core | Lito Villanueva |
| 3 | Technology in Finance | Henry Aguda |
| 4 | For Businesses with Social Goals, Technology is at its Heart | Rose Marie M. King-Dominguez and Jose Florente M. Pamfilo |
| 5 | New Frontier: NFTs and its Legal Impact on Digital Asset Regulations | Atty. Mark S. Gorriceta |
| 6 | Digitalization of Corporate Bonds in the Philippines | Antonino Nakpil |
| 7 | Valuation of Digital Transformation | Reynaldo Lugtu Jr. |
| 8 | Emerging Challengers and Incumbent Operators Battle for Asian Pacific’s Digital Banking Opportunity | Jungkiu Choi, Yashraj Erande, Yang Yu and Camille Jasmine Aquino |
| 9 | Blockchain Technology | Brian Trias |
| 10 | The Cost of Public Cloud vs. Hosted private Cloud | Bong M. Paloma and Kar Wong |
| 11 | Big Data and Analytics | Teddy Sumulong |
Preparations are already being made for the third edition, which will focus on “The Role of CFOs in a Changing Business Environment: Post-COVID.”
5. Social Involvement Committee (SIC)
Details of the various projects of our Social Involvement Committee (SIC) are now being flashed on the screen.
What I would like to highlight is that our SIC has truly remained true to its name. Together with other committees of the Foundation and various organizations, it held various financial literacy projects, principally for those in the lower segments of our society (mothers from Payatas, sari sari store owners, farmers, domestic workers, elderly and unemployed, farmers, etc.) as far as Dauis, Bohol. These projects are aimed at helping alleviate their financial condition. The sessions included the fundamental of savings, finance, accounting, management and entrepreneurship.
Our partners in this very lofty program included the Coalition of Services of the Elderly (COSE), Tulay sa Pag-unlad, Inc. (TSPI), Consuelo “Chito” Madrigal Foundation, Inc. (CCMFI). As you may recall, our partnership with COSE, CCMFI and TSPI was sealed and formalized by Memorandums of Agreement which were signed during the May 26 special membership meeting. Indeed, in recognition of its efforts, the Social Involvement Committee was also accepted to be part of the National Strategy for Financial Inclusion (NSFI) Financial literacy and consumer protection working group. My fearless forecast
I would like to personally commend Dr. Chit Manabat and Committee Chair Menchu Serina for their untiring devotion and work for our Social Involvement Committee.
- PROJECT RISE: Investor Education Program – Retail Investor & Shareholder Empowerment
Just in yesterday’s board meeting, we approved in principle the participation of the Foundation in Project Rise of the Shareholders’ Association of the Philippines (SharePHIL). Project Rise, which stands for Retail Investor and Empowerment, is aimed at encouraging the masses to invest in our stock through investor education and shareholder empowerment. It seeks to promote sustainable and responsible investing habits among Filipinos in our stock market where retail investors’ participation is miniscule compared to our Asian neighbors. We will be utilizing a part of the Capital Market Fund for this purpose.
Closing
Finally, allow me to express my gratitude to all FINEX members, the FINEX Foundation’s Board of Trustees, the FINEX Institute’s Board of Directors, and the FINEX Academy’s Board of Trustees for their support of our plans and programs for 2022. Again, we would like to express our gratitude to the Foundation’s Committee Chairpersons and their respective members for their time and effort in ensuring the successful implementation of the Foundation’s various projects and activities in 2022.