Security Bank goes global with two new feeder funds

Security Bank Corp. (SBC) recently launched two new types of feeder funds, the SB US Equity Index Feeder Fund and SB Global Equity Index Feeder Fund, which will allow the public to invest beyond the Asia Pacific region and in developed and emerging markets in the US and across the globe.

Early this year, Security Bank launched its Asia Pacific Equity Feeder Fund, managed by the Mitsubishi UFJ Trust and Banking Corporation.  The Bank since then widened its reach and tapped the global stock market to introduce new investment products to its clients.

The SB US Equity Index Feeder Fund aims to invest in large, mid, and small cap US equities with diversified growth and value styles.  The fund invests in up to 4,000 corporate names from the US stock exchange.  Meanwhile, the SB Global Equity Index Feeder Fund allows the public to invest in developed and emerging economies in the world market with up to 8,000 corporate names in its portfolio.

Security Bank highlights that these new products will allow clients to diversify their investment portfolios based on risks and return objectives and expose them to the US and global equity markets.

“We want to continue bringing in other investment instruments to cater to the different objectives and risk appetite of every investor.  With our new investment vehicles, investors could now venture globally and reach more highly profitable companies,” said Security Bank Executive Vice President & Treasurer Raul Pedro.  “We gave you Asia then, and now we are providing you access to other parts of the globe,” he added.

Both of Security Bank’s Feeder Funds feed from two ETFs managed by The Vanguard Group, a US-registered investment advisor and the largest provider of mutual funds in the world with over $5.1 trillion in global assets under management.  The SB US Equity Index Feeder Fund feeds from Vanguard’s Total Stock Market ETF which seeks to track the Chicago-based Center for Research in Security Prices’ (CRSP’s) US Total Market Index. Meanwhile, the SB Global Equity Index Feeder Fund uses Vanguard’s Total World Stock ETF that targets the FTSE Global All Cap Index as its barometer.

Security Bank Assistant Vice President & Economist Angelo Taningco said that their new investment funds complement the status of the international economy and global market prospects in 2018: “With the United States having a projected 3% GDP growth and with more developed economies and emerging markets actually growing, the world economic outlook is robust and ripe for more investments.”

As of Q1 2018, Vanguard’s data showed that both funds are invested in top ten performing industries including: financials, technology, industrials, consumer services and healthcare. Some of the holding companies include Apple Inc., Berkshire Hathaway Inc., JP Morgan Chase & Co., and Johnson & Johnson.

Security Bank said that offering the new feeder funds is timely since more international opportunities are starting to emerge in the midst of a stronger world economic outlook, complemented by a convection in equity markets.  Individuals may invest a minimum of USD 1,000 while institutional investors and high-net-worth individuals (HNWI) may invest a minimum of USD 5,000.

For more information on the US Equity Index Feeder Fund and Global Equity Index Feeder Fund or other UITFs, contact trustmarketing@securitybank.com.ph or call 888-7372/7371.  You may also visit https://www.securitybank.com/investglobally/.

(in photo) Security Bank EVP & Treasurer Raul Pedro, AVP & Economist Angelo Taningco and FVP & Chief Investment Officer of the Trust and Asset Management Group Noel S. Reyes sharing their economic outlook on markets here and abroad during a Facebook Live event.

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