Infinity Dollar Long Term Bond Fund UITF
Infinity Dollar Prime Fund
Infinity Dollar Trust Maximizer UITF

Infinity Peso Long Term Bond Fund UITF
Infinity Peso Money Market UITF
Infinity Peso Trust Maximizer UITF

Product Description and Customer Suitability
A dollar-denominated fixed-income unit investment trust fund that aims to maximize the returns of the investors by investing in a diversified portfolio of deposits and tradable investment-grade debt securities issued by the Philippines government and corporations. It is ideal for investors who are seeking for higher returns with exposure at relatively moderate price volatility and those with long term investment horizon. Minimum placement amount is $10,000 with a minimum holding period of one hundred eighty (180) days. Trust fee 1% p. a. based on the total market value of the Fund. Portfolio duration is more than five years.

COMMENTARY FOR INFINITY DOLLAR UNIT INVESTEMENT TRUST FUND (UITF)
The Dollar Trust Maximizer posted an absolute year-to-date return of 1.1631% and year-on-year return of 6.8201%, net of taxes and fees while the Infinity Dollar Long Term Bond Fund had an absolute return of .5350% since its inception date as of end of the first quarter of 2007.

US Dollar denominated Republic of the Philippines (ROPs) debt paper prices trade within a tight range for the first quarter of the year 2007. Even with the improved fiscal position of the country, there was not appreciation in ROP prices as this was already discounted as reflected in current prices External developments, mainly, the economic performance of the United States of America (USS) continue to be the driver on the movement of ROP bonds.

Market players initially had a strong conviction that the Federal Reserve Bank of the USA will be cutting its borrowing rates by the 2nd quarter of the year due to generally weak US economic data. However, as strong US economic data rolled-out towards the end of the first quarter of this year, it suggested to the market players to rethink on the possible move of the FEDS in cutting interest rate for the year.

Market is still waiting for clearer direction on interest rates in the US, as some FED officials are also amongst those that have contrarian views.

A confluence of other factors was also attributable to the volatility in the USD denominated ROP market. They are as follows:

1. Stock market sell-off that started in China triggered by speculation that China assets are over-valued and that the Chinese economy may burst like a bubble. Such event will affect asset prices world-wide as China is known to contribute largely to the growth in the global economy.
   
   
2. The worry on the sub-prime lending market in the US A, which may eventually spillover to the assets managers. Some debt failures in the sub-prime market caused banks to rethink their exposures in this type of market.

Both of the above highly contributed to the flight to quality assets of the investors. At one point, emerging market bonds, ROPs included, were being sold in favor of US Treasuries. However, due to good fundamentals in the Emerging Markets, the bonds have proven their resiliency and immediately corrected back to prices more reflective of their credit quality.

As the ROP market continues to take its cue from USA economic data, the Dollar Trust Maximizer and Infinity Dollar Term Bond Fund will remain invested in short duration assets until we see a clearer indication of the US economy's performance which will a good indicator on the direction of the US Fed's next monetary policy move.