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Monday, May 9, 2011

How much do you need to invest in Unit Investment Trust Fund (UITFs)?


How much do you need to invest in Unit Investment Trust Fund (UITFs)?
 
If you are looking an investment instrument were you can park your money to grow in time that gives much higher interest rate per year compare to time deposits. You can try Unit Investment Trust Funds (UITFs) offered by a different banks. You can read my last topic Where to invest my money? and also Differences between Mutual Funds from UITFs to know more what is Unit Investment Trust Funds and Mutual Funds are.

Here, I'll just give you the summarize of some UITFs services offered by different banks in the Philippines to help you choose which UITFs are suited for you. 

Types of UITFs

There are Four types of UITFs you can choose from and it depends on the terms and risk appetite of an investor to choose.

1. Money Market Fund. This type of fund aims for capital preservation and income generation by investing in short-term fixed income securities with a portfolio average duration of one year or less giving returns relatively on the low-side but are relatively higher than those of savings and time deposit account. Money market funds are offered primarily for risk-averse investors. 

2. Bond Fund. This type of fund aims for capital preservation and income generation over the medium term by investing in fixed income securities with a portfolio average duration of more than one year. This allows the bond funds to give higher returns as compared to money market funds but also carries with them higher volatility. Bond funds are developed for investors who are risk tolerant and who have a longer investment time horizon of about three years or more.

3. Equity Fund. This type of fund is for capital growth over the medium to long-term by investing in a selection of exchange-listed stock investments. A longer time horizon is recommended when investing in an equity fund given the risks/volatility attached to investing in equities, thus this fund is suited for risk takers. This type of fund, offers the highest potential returns derived from capital appreciation of the stock investments and dividend earnings.

4. Balanced Fund. This type of fund, aims to provide capital appreciation over the medium term by investing in equities and in fixed income securities, the allocation of which is determined by fund managers depending on market conditions. The equity component provides additional yields from potential gains on stock investments. Balanced funds are for investors who are risk takers, who can invest for more than three (3) years and who are aware that the potential for high yields carries with it the risk of capital losses that equity investments can bring.

Types of UITFs offered by Banco De Oro (BDO)

BDO PESO MONEY MARKET FUND
This investment instrument when safety and liquidity are the main considerations. This Fund is suitable for risk-averse individual and corporate investors who are looking for safe and liquid investments with yields relatively higher than those of savings and time deposit accounts. In order to minimize risks and maximize earning potential, participants/trustees are recommended to stay invested in the fund for at least six (6) months. 

Fund Facts
Bloomberg Ticker
BDOPMMF <Index>
Fund Type
Money Market Fund
Inception Date
April 1, 2005
Benchmark
Bloomberg Ave. 30-day Special Savings Rate
Par Value
PhP 1,000.00
Minimum Investment
PhP 100,000.00
Minimum Additional
PhP 100,000.00
Minimum Holding Period
None
Early Redemption Fee
None
Management Fee
0.50% p.a.
Time NAVpU Computed
Every trading day at 4:00 p.m.
Dealing Period
Up to 11:30 a.m. of any banking day
Settlement Period

After 4:00 p.m. on the same banking day the
notice of redemption is received
Custodian
Standard Chartered Bank
External Auditor
Punongbayan & Araullo

In addition to the Peso Money Market Fund, BDO Trust also offers the BDO Dollar Money Market Fund for those with dollar holdings.

BDO PESO BOND FUND
Earn higher yields from short to medium term bonds. This Fund is suitable for risk-tolerant individual and corporate investors who are looking for higher yields and are willing to take the attendant risks due to the nature of the Fund’s investments. In order to minimize risks and maximize earning potential, participants/trustees are recommended to stay invested for at least three (3) years.

Fund Facts
Bloomberg Ticker
BDOPBF <Index>
Fund Type
Intermediate Term Bond Fund
Inception Date
April 1, 2005
Benchmark
HSBC 1-3 Yr Bond Index
Par Value
PhP 1,000.00
Minimum Investment
PhP 100,000.00
Minimum Additional
PhP 100,000.00
Minimum Holding Period
30 calendar days
Early Redemption Fee
0.50% of Original Participation Amount
Management Fee
0.75% p.a.
Time NAVpU Computed
Every trading day at 7:00 p.m.
Dealing Period
Up to 12:00 noon of any banking day
Settlement Period

One (1) banking day after notice of redemption is received
Custodian
Standard Chartered Bank
External Auditor
Punongbayan & Araullo

BDO PESO BALANCED FUND
Potential for higher returns from a mix of equity and fixed-income investments. This Fund is suitable for risk-taking individual and corporate investors who are aware of the opportunity for high yields that stock market investments may provide but are also knowledgeable of the possibility of capital losses that such investments may entail. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested for more than three (3) years.

Fund Facts
Bloomberg Ticker
BDOPBAL <Index>
Fund Type
Balanced Fund
Inception Date
July 3, 2003
Benchmark

Average of the PSE Index and the Bloomberg Ave. 30-day Special Savings Rate
Par Value
PhP 1,000.00
Minimum Investment
PhP 10,000.00
Minimum Additional
PhP 10,000.00
Minimum Holding Period
30 calendar days
Early Redemption Fee
0.50% of Original Participation Amount
Management Fee
1.00% p.a.
Time NAVpU Computed
Every trading day at 7:00 p.m.
Dealing Period
Up to 12:00 noon of any banking day
Settlement Period

Four (4) banking days after notice of redemption is received
Custodian

Standard Chartered Bank, Phil. Depository & Trust Corp.
External Auditor
Punongbayan & Araullo
Others
Easy Investment Plan (EIP) feature


BDO EQUITY FUND (formerly EPCIB Equity Fund)
Potential for higher returns from a portfolio of selected equities. This Fund is suitable for risk-taking individual and corporate investors who seek potentially higher returns through stock market investments but are also aware of the possibility of capital losses that such investments may entail. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested for more than (3) years.

Fund Facts
Bloomberg Ticker
EPCIBEQ <Index>
Fund Type
Equity Fund
Inception Date
May 3, 2005
Benchmark
PSE Index
Par Value
PhP 100.00
Minimum Investment
PhP 10,000.00
Minimum Additional
PhP 10,000.00
Minimum Holding Period
30 calendar days
Early Redemption Fee
1.00% of Original Participation Amount
Management Fee
1.00% p.a.
Time NAVpU Computed
Every trading day at 7:00 p.m.
Dealing Period
Up to 12:00 noon of any banking day
Settlement Period

Four (4) banking days after notice of redemption is received
Custodian
Deutsche Bank AG, Manila Branch
External Auditor
Punongbayan & Araullo
Others
Easy Investment Plan (EIP) feature
Source:
http://trust.bdo.com.ph/trustwebsite/personal-page.asp?pid=811


Types of UITFs offered by Metrobank

METRO MONEY MARKET FUND (Formerly Metrofund Starter)

This fund is suited for clients who has short-term plan of at least one month, moderate risk taker and focused on preserving of capital.

Fund Facts
Fund Classification
Money Market Fund
Min. Initial Participation
Php 50,000
Min. Additional Participation
Php 25,000
Maintaining Balance
Php 50,000
Min. Investment Horizon
30 Days
Holding Period
7 days
Early Redemption Charge
50% of income on redeemed amount
Trust Fee
1.0% p.a. based on NAV of the Fund
Custodian Fee
0.015% p.a.
Applicable Tax
20% Final Withholding Tax
Dealing Day
Daily up to 12:00NN
Redemption Settlement Date
Next banking day from date of redemption
Benchmark
Philippine 30-Day Special Savings Rate Gen. Ave (net)
Fund Manager
Metrobank - Trust Banking Group
Custodian
Standard Chartered Bank
Valuation
Marked-to-Market


METRO MAX-3 BOND FUND (Formerly Metrofund Elite)

This Fund is a peso-denominated intermediate-term bond fund suited for clients who have an investment horizon of at least one year and can tolerate a moderate degree of risk.

Fund Facts
Fund Classification
Intermediate-Term Bond Fund
Min. Initial Participation
Php 50,000
Min. Additional Participation
Php 25,000
Maintaining Balance
Php 50,000
Min. Investment Horizon
1 Year
Holding Period
30 days
Early Redemption Charge
50% of income on redeemed amount
Trust Fee
1.0% p.a. based on NAV of the Fund
Custodian Fee
0.015% p.a.
Applicable Tax
20% Final Withholding Tax
Dealing Day
Daily up to 12:00NN
Redemption Settlement Date
Next banking day from date of redemption
Benchmark
80% HSBC Local Currency Bond Index (HSLI) 1 – 3 years (net) &  20% Philippine 30-Day Special Savings Rate Gen. Ave (net)
Fund Manager
Metrobank - Trust Banking Group
Custodian
Standard Chartered Bank
Valuation
Marked-to-Market

METRO BALANCED FUND (Formerly Metro Capital Growth Fund)

This Fund is a peso-denominated balanced fund suited for clients who have an investment horizon of at least five years and can tolerate a high degree of risk for superior total investment returns.

Fund Facts
Fund Classification
Balanced Fund
Min. Initial Participation
Php 25,000
Min. Additional Participation
Php 25,000
Maintaining Balance
Php 25,000
Min. Investment Horizon
5 Year
Holding Period
90 days
Early Redemption Charge
50% of income on redeemed amount
Trust Fee
2.0% p.a. based on NAV of the Fund
Custodian Fee
0.015% p.a.
Applicable Tax
20% Final Withholding Tax
Dealing Day
Daily up to 12:00NN
Redemption Settlement Date
Next banking day from date of redemption
Benchmark
50% Philippine Stock Exchange index (PSEi), 40% HSBC Local Currency Bond Index (HSLI) 1 – 5 years (net), and 10% Philippine 30-day Special Savings Rate Gen. Average (net)
Fund Manager
Metrobank - Trust Banking Group
Custodian
Standard Chartered Bank
Valuation
Marked-to-Market


METRO EQUITY FUND 

This Fund is a peso-denominated equity fund suited for clients who have an investment horizon of at least five years and can tolerate a high degree of risk for superior capital growth. 

Fund Facts
Fund Classification
Balanced Fund
Min. Initial Participation
Php 25,000
Min. Additional Participation
Php 25,000
Maintaining Balance
Php 25,000
Min. Investment Horizon
5 Year
Holding Period
90 days
Early Redemption Charge
50% of income on redeemed amount
Trust Fee
2.0% p.a. based on NAV of the Fund
Custodian Fee
0.015% p.a.
Applicable Tax
20% Final Withholding Tax
Dealing Day
Daily up to 12:00NN
Redemption Settlement Date
Next banking day from date of redemption
Benchmark
90% Philippine Stock Exchange index (PSEi) and 10% Philippine 30-day Special Savings Rate Gen. Average (net)
Fund Manager
Metrobank - Trust Banking Group
Custodian
Standard Chartered Bank
Valuation
Marked-to-Market
Source:
www.metrobank.com.ph


Types of UITFs offered by Philippine National Bank (PNB)

MONEY MARKET FUND 

These funds are best suited for investors who are willing to take minimal risks and are after investment returns better than deposits.

MABUHAY PRIME UITF


MABUHAY PRIME UITF
DOLLAR PRIME UITF
Min. Initial Participation and Maintaining Balance
P25,000
$1,000
Min. Additional Participation
P15,000
$500
Min. Holding Period
5 banking days
45 calendar days
Trust Fee
1.0% p.a. of Fund Value
0.5% p.a. of Fund Value
Issuance of Confirmation of Participation / Participating Trust Agreement
1 banking day after value date
1 banking day after value date
Release of Proceeds
1 banking day after redemption
1 banking day after redemption


BALANCED FUND
Mabuhay Prestige UITF

Mabuhay Prestige is a balanced fund that is invested in both fixed income securities and equities. The equities portion of the Fund is invested in stable companies with large capitalization and high earnings potentials while the fixed income securities include medium-term deposits and government securities. This Fund is suited for aggressive investors who are willing to take a higher level of risks for better returns.

Mabuhay Prestige UITF
Min. Initial Participation and Maintaining Balance
P100,000
Min. Additional Participation
P50,000
Min. Holding Period
90 calendar days
Trust Fee
1.25% p.a. of Fund Value
Issuance of Confirmation of Participation / Participating Trust Agreement
1 banking day after value date
Release of Proceeds
3 banking day after redemption


EQUITY FUND
PNB EPRF

The PNB EPRF is a peso-denominated, equity-index reference fund that uses an ‘Enhanced Index Reference Approach’ which aims to invest in selected representative stocks that are highly correlated to the Philippine Stock Exchange index (PSEi) and minimize losses during a bear market by divesting out of the equities market.

PNB EPRF
Min. Initial Participation and
PHP 25,000.00
Maintaining Balance
PHP 15,000.00
Min. Additional Participation
PHP 10,000.00
Min. Holding Period
90  calendar days
Issuance of Confirmation of Participation / Participating Trust Agreement
1 banking day after value date
Release of Proceeds
3 banking day after redemption
Source:
www.pnb.com.ph

Types of UITFs offered by Rizal Commercial Banking Corporation  (RCBC)

RIZAL PESO MONEY MARKET FUND

The Rizal Peso Money Market Fund is a peso denominated money market UITF product which pools together funds of various investors for investment and reinvestment in a relatively short term portfolio of fixed income instruments comprised mainly of government securities, time deposits and other tradable securities. The minimum amount of participation is very affordable at P25,000.00 while additional investments can be made for as low as P5,000.00. It has a minimum holding period of 30 days. It is suited to conservative investors who are looking for moderate and relatively stable returns over the next 90 days but want immediate access to their funds when they need it. For investing, operating and administering the Fund, the trustee charges a management fee of 0.5% per annum. A flat early redemption charge of 0.125% is collected in case the participation is redeemed before completing the minimum holding period. Withdrawals of participation are paid one (1) business day after notification.

Minimum Investment
Php 25,000
Minimum Additional
5,000
Maintaining Balance
25,000
Minimum Holding Period
30 days
Early redemption Charge
0.125%
Redemption Settlement Date
T + 1
Management Fee
0.50% p.a.
Portfolio Mix
Short-term Fixed income securities

RIZAL PESO BOND FUND

The Rizal Peso Bond Fund is a peso denominated UITF product which pools together funds of various investors for investment and reinvestment in a portfolio of both short-term and long-term fixed income securities. The Fund’s investments are comprised mostly of government securities, time deposits and other tradable securities. The minimum amount of participation is P50,000.00 while additional placements can be made for at least P10,000.00. The minimum holding period is 90 days. The Fund is fit for traditional investors with an investment horizon of at least one year who desire potentially higher returns on their investment. Participation in this fund can be the longer-term component of an individual's personal investment portfolio.

For investing, operating, and administering the Fund, the trustee charges a management fee of 0.5% per annum. A flat early redemption charge of 0.125% is collected in case the participation is redeemed before completing the minimum holding period. Withdrawals of participation are paid one (1) business day after notification.

Minimum Investment
Php 50,000
Minimum Additional
10,000
Maintaining Balance
50,000
Minimum Holding Period
90 days
Early redemption Charge
0.125%
Redemption Settlement Date
T + 1
Management Fee
0.50% p.a.
Portfolio Mix
Long-term Fixed income securities

RIZAL EQUITY FUND

The Rizal Equity Fund is a peso denominated UITF product which pools together funds of various investors for investment and reinvestment in local equities listed and to be listed in the Philippine Stock Exchange (PSE) with the balance invested in fixed income securities.

For a minimum investment of P25,000.00, aggressive investors who are familiar with stock investments and who want to partake of the action in the local stock market will participate in a portfolio of equities and interest bearing securities through the fund. The minimum additional placement is P5,000.00. This fund meets the preference of sophisticated investors who are willing to take on additional risks in exchange for the opportunity to reap higher returns. The Fund's minimum holding period is 90 days.

For investing, operating, and administering the Fund, the trustee charges a management fee of 1.0% per annum. A flat early redemption charge of 0.25% is collected in case the participation is redeemed before completing the minimum holding period. Withdrawals of participation are paid three (3) business days after notification.

Minimum Investment
Php 25,000
Minimum Additional
5,000
Maintaining Balance
25,000
Minimum Holding Period
90 days
Early redemption Charge
0.250%
Redemption Settlement Date
T + 3
Management Fee
1.00% p.a.
Portfolio Mix
Up to 80% in listed equities with the balance in Fixed Income Securities
Source:
www.rcbc.com


Note, since UITF are not form of deposits. It is not insured and covered by Philippines Deposit Insurance Corporations (PDIC). I recommended, better assess your risk appetite and term of investment before you do and used this investment instrument of any banks. And also, the information stated here can be change without prior notice by banks after you read this. I'm not liable  for any misinformation written here if any. So better check their website for any changes and updates or contact their bank office near you.


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