Diversification
Investments (and risks) are spread across various asset baskets industry wide.
Liquidity
You can subscribe and redeem on any banking day.
Affordability
You can start investing in UITFs with just $1,000 (SB dollar account required)..
Professional Fund Management
Seasoned fund managers constantly
monitor markets for opportunities.
Transparency
You can check the value of your
investment daily with NAVPU.
Regulated Product
Management and regulation of UITFs are
governed by the Bangko Sentral ng Pilipinas.
About the fund
The SB ESG Aware Equity Index Feeder Fund is an equity Unit Investment Trust Fund that is structured as a feeder fund that allows investors to diversify their portfolios and gain access to large and mid-cap U.S. stocks with positive ESG characteristics through its Target Fund, the iShares ESG Aware MSCI USA ETF, and achieve investment returns that closely track the total return of the Target Fund.
Client suitability
The SB ESG Aware Equity Index Feeder Fund is suitable for investors who:
- Have an aggressive risk tolerance
- Seek potentially higher returns through investments in US stocks and who can tolerate high price volatilities
- Have the possibility to be exposed to capital losses given the volatile nature of the US equity market
- Have an investment horizon of at least 3 years
Related downloads
Fund Details
| Fund Type | Equity Index Feeder Fund |
| Inception Date | September 9, 2022 |
| Initial NAVPU | USD 1.00 |
| Target Fund | iShares ESG Aware MSCI USA ETF |
| Order Date (T) | Any Business Day within the Subscription Cut-Off Time and/or Redemption Cut-Off Time. |
| Trade Date (T) | A Business Day where the subscription and/or redemption order is executed. Order Date is the Trade Date. |
| Redemption & Subscription Cut-Off Time | Up to 1:30pm of any Business Day |
| Subscription Settlement Date | On Order Date |
| Redemption Settlement Date | Up to seven (7) Business Days after receipt of Redemption Notice and/or Redemption Confirmation within the Redemption Cut-Off Time |
| Valuation Date | The Business Day at which the Fund’s assets are valued. In case of Subscription and/or Redemption, the Valuation Date is the Trade Date. |
| Trust Fee (p.a.) | 0.70% p.a. |
| Other Notes |
Applicable holidays for this Fund: US and Philippine holidays |
| Minimum Initial Participation | Minimum Subsequent Participation | Minimum Redemption | Minimum Holding Amount |
| USD1,000.00 | USD500.00 | USD500.00 | USD1,000.00 |
Sustainability Characteristics of ESGU
(as of June 21, 2022)
| MSCI ESG Fund Rating (AAA-CCC) | AAA |
| MSCI ESG Quality Score (0-10) | 9.2 |
| Fund Lipper Global Classification | Equity US |
| MSCI Weighted Average Carbon Intensity (Tons CO2E/$MSALES) | 106.08 |
| MSCI Implied Temperature Rise (0-3.0+°C) | >2.5°C-3.0°C |
| MSCI ESQ % Coverage | 100% |
| MSCI ESG Quality Score-Perr Percentile | 96.41% |
| Funds in Peer Group | 3, 481 |
| MSCI Weighted Average Carbon Intensity % Coverage | 99.52% |
| MSCI Implied Temperature Rise % Coverage | 99.42% |
Target Fund Information and Performance
(as of January 31, 2023)
TARGET FUND DETAILS
| Fund Name | iShares ESG Aware MSC USA ETF |
| Launch Date | 01 December 2016 |
| Management Company | BlackRock Fund Advisors (“BFA”) |
| Investment Manager | BlackRock Fund Advisors (“BFA”) |
| Asset Class | Exchange Traded Fund (ETF) |
| Expense Ratio* | 0.15% |
| Target Fund Underlying Index | MSC USA Extended ESG Focus Index |
| Target Fund Bloomberg Ticker | ESGU |
The effective expense ratio p.a is computed as follows:
| SB ESG Aware Equity Index Feeder Fund | 0.70% |
| iShares ESG Aware Index Feeder Fund | 0.15% |
| TOTAL | 0.85% |
*Expense Ratio of the Target Fund is the sum of the Management Fees and Other Fees and Expenses; 0.15% is as of July 29, 2022
TOP TEN HOLDINGS
| Apple Inc. | 6.32% |
| Microsoft Corp. | 5.17% |
| Amazon.com Inc. | 2.23% |
| Alphabet Inc. Class A | 1.51% |
| Alphabet Inc. Class C | 1.50% |
| UnitedHealth Group Incorporated | 1.49% |
| NVIDIA Corp | 1.46% |
| Tesla, Inc. | 1.28% |
| JPMorgan Chase & Co. | 1.21% |
| ExxonMobil Corporation | 1.20% |
Cumulative Performance
(As of January 31, 2023)
| Period | YTD | 1 Month | 3 Months | 6 Months | 1 Year | 3 Years |
| Total Return (%) | 5.39% | 5.39% | 3.49% | N/A | N/A | N/A |
| Benchmark (%) | 6.20% | 6.20% | 4.95% | N/A | N/A | N/A |
This is the cumulative performance of the Target Fund, MSC USA Extended ESG Focus Index or ESGU. The performance quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
How to Invest
1
You need to have an SB Dollar Account to invest.
No dollar account yet? Click here to open an account.
2
Fill up the UITF Application Form completely.
3
Wait for a call from our investment specialist.
Want to invest in our UITFs?
Yes, I want to invest in UITFs right now.No, I want to learn more about investingKey Risks
MARKET RISK – Market risk is the general risk attendant to all investments that the value of a particular investment will change in a way detrimental to a portfolio’s interest. Market risk is specifically high on investments in shares (and similar equity instruments). The risk that one or more companies will suffer a downturn or fail to increase their financial profits can have a negative impact on the performance of the overall portfolio at a given moment.
CURRENCY RISK – Currency risk involves the risk that the value of an investment denominated in currencies other than the Reference Currency of the Target Fund may be affected favourably or unfavourably by fluctuations in currency rates.
LIQUIDITY RISK – There is a risk that the Target Fund will not be able to pay repurchase proceeds within the time period stated in the Prospectus, because of unusual market conditions, an unusually high volume of repurchase requests, or other reasons.
EQUITY RISK – The value of the Target Fund that invest in equity and equity related securities will be affected by economic, political, market, and issuer specific changes. Such changes may adversely affect securities, regardless of the Target Fund’s specific performance. Additionally, different industries, financial markets, and securities can react differently to these changes. Such fluctuations of the Target Fund’s value are often exacerbated in the short-term as well. The risk that one or more companies in the Target Fund’s portfolio will fall, or fail to rise, can adversely affect the overall portfolio performance in any given period.
COUNTERPARTY RISK – In addition, the Target Fund may be exposed to risks relating to the credit standing of its counterparties and to their ability to fulfil the conditions of the contracts it enters into with them.
In the event of a bankruptcy or insolvency of a counterparty, the Fund could experience delays in liquidating the position and significant losses, including declines in the value of its investment during the period in which the fund seeks to enforce its rights, inability to realise any gains on its investment during such period and fees and expenses incurred in enforcing its rights. There is also a possibility that the above agreements are terminated due, for instance, to bankruptcy, supervening illegality or change in the tax or accounting laws relative to those at the time the agreement was originated.
EPIDEMIC AND PANDEMIC RISK AND OTHER BLACK SWAN EVENTS – The impact of epidemics, pandemics or outbreaks of contagious diseases (such as the avian flu, swine flu, African swine fever, Severe Acute Respiratory Syndrome (SARS), Middle East Respiratory Syndrome (MERS), Ebola virus disease and COVID-19) could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. The impact could include wide spread and severe interruption of economic activities, national holidays being extended and personnel being placed in quarantine and/or leave of absence, the closure of transport links for affected regions, and the implementation and enforcement of quarantine and lockdowns of affected regions. An effective vaccine may not be discovered in time to protect against such epidemic or pandemic, or to mitigate the impact of the contagious disease. Such health crisis may exacerbate other pre-existing political, social and economic risks in certain countries. It is possible that the impact of any such outbreak of a disease will affect certain countries or regions in a more severe manner, relative to other parts of the world.
On top of Epidemic and Pandemic Risks, other Black Swan Events may pose a Risk to Financial and other Asset Investments. A Black Swan Event is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight. Black swan events can cause catastrophic damage to an economy by negatively impacting markets and investments. Even the use of robust modeling cannot prevent a black swan event as by definition, these events are unpredictable. Examples of such events may be natural or man-made and encompass unpredictable developments in the environment, political, social, and scientific landscape to name a few.
COUNTRY RISK – Certain changes in the U.S. economy, such as when the U.S. economy weakens or when its financial markets decline, may have an adverse effect on the securities to which the Target Fund has exposure.
The other risks as disclosed in the Prospectus include the following:
INDEX RISK – The Target Fund does not utilize an investing strategy that seeks returns in excess of its Underlying Index. Therefore, the Target Fund would not necessarily buy or sell a security unless that security is added or removed respectively from the Underlying Index, even if that security generally is underperforming. Additionally, the Target Fund rebalances its portfolio in accordance with its Underlying Index, and, therefore, any changes to the Underlying Index’s rebalance schedule will result in corresponding changes to the Target Fund’s rebalance schedule.
INDUSTRY CONCENTRATION RISK – In following its methodology, the Underlying Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry of industry group. To the extent that the Underlying Index concentrates in the securities of issuers in a particular industry or industry group, the Target Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or industry group, the Target Fund may face more risks that if it were diversified broadly over numerous industries or industry groups. Such industry-based risks, any of which may adversely affect the companies in which the Target Fund invests, may include, but not limited to the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in a particular industry; competition for resources, adverse labor relations, political or world events; obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in an industry. In addition, at times, such industry or industry group may be out of favor and underperform other industries or the market as a whole.
ISSUER-SPECIFIC CHANGES RISK – The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole.
MARKET TRADING RISK – The Target Fund faces numerous market trading risks, including the potential lack of an active market for shares, losses from trading in secondary markets and disruption in the creation/ redemption process of the Target Fund. Any of these factors may lead to the shares of the Target Fund trading at a premium or discount to the Target Fund’s Net Asset Value.
NON-DIVERSIFIED FUND RISK – Because the Target Fund is non-diversified and can invest a greater portion of tis assets in securities of individual issuers than a diversified fund, changes in the market value of a single investment could cause greater fluctuations in the share price of the Target Fund than would occur in a diversified fund. This may increase the Target Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Target Fund’s performance.
Refer to the Prospectus for the complete enumeration or explanation of the risks involved in purchasing the shares of the Target Fund.
Taxation
- Except when specifically required by law, the Trustee shall have no responsibility to withhold income or other taxes on revenues from the Fund.
- Each participant should consult its own tax advisor as to the specific tax consequences of his/her investment in and redemption of units of participation in the Fund, including the applicability and effect of local and national laws of the Philippines, as well as consequences arising under the laws of any other taxing jurisdiction.
Frequently Asked Questions
- What is a UITF?
A UITF (or Unit Investment Trust Fund) is an open-ended pooled trust fund denominated in pesos or in any acceptable currency, which is operated and administered by a trust entity. Each UITF is governed by a Declaration of Trust (or Plan Rules) which contains the mechanics for investing, operating, and administering the fund. The funds are then invested by a team of professional portfolio managers in various deposits and securities. Individuals and institutions take part in the UITF by purchasing units of participation in the fund. - What is the difference between a Mutual Fund and a UITF?
- A. Where to invest
- Mutual Fund (MF): A mutual fund company. They are sold by licensed mutual fund agents.
- Unit Investment Trust Fund (UITF): Commercial banks, particularly their trust or asset management department. They are sold by certified UITF sales personnel.
- B. Who regulates these companies
- MF: Securities and Exchange Commission (SEC)
- UITF: Bangko Sentral ng Pilipinas (BSP)
- C. What you are buying in a fund
- MF: Common shares in the investment company
- UITF: Units of participation in the UITF
- D. The price of the fund is expressed in terms of
- MF: Net Asset Value Per Share (NAVPS)
- UITF: Net Asset Value Per Unit (NAVPU)
- E. Investment fees and their usual range
- MF: sales charge (1% – 5%); redemption fee (0.5% – 3%); investment advisory, distributor and administration fees (1% – 2.5%)
- UITF: trust fees (0.35% – 1.50%)
- A. Where to invest
- What are the fees involved?
The trustee shall charge the fund for management fees, taxes and qualified expenses. The trust fee shall differ for each type of fund and will cover the costs of investment research, management, marketing and routine administrative expenses of the trustee. Note that the taxes are already withheld by the trustee so the NAVPU is already net of fees and taxes. - What are the risks of investing in a UITF?
Because the assets of the UITF are valued based on the prevailing market price, there is a possibility that investments in the fund may go up or down. There are no guarantees of principal nor income. Losses, if any, shall be for the risk of the UITF investors. UITFs are governed by BSP regulations but are not deposit products, hence are not covered by the Philippine Deposit Insurance Corporation (PDIC). - What does “open-ended pooled trust fund” mean?
A UITF is an open-ended investment, meaning the fund will continue to be managed with no predefined term or termination date. It is up to the investor to determine how long he wants to keep his funds invested. - What does “made available by participation” mean?
A client invests in a UITF by purchasing units of participation in the fund. The units of participation represent the investor’s proportionate share in the total value of the fund. As an investor in the fund, the client does not own any specific asset of the fund, only a proportionate share in all of the fund’s assets. - How is a fund different from a bank deposit?
There are several major differences between UITF investments and bank deposits. First, the UITF is a trust product and is managed by the Trust Department of the bank. Second, investments in the UITF are marked to market. Their value can go up or down on a daily basis, depending on the market value of the underlying investments. Third, there is no guaranteed rate of return that the fund will provide. For reference, the fund’s past performance is available. However, it is important to note that past performance is not necessarily indicative of future performance. Fourth, as a result of the daily fluctuations in market value, the principal is not protected. Fifth, the UITF is not covered by PDIC Insurance. - How can an investor compare the performance of the trustee versus other trust entities?
All trust entities offering UITF products are required to publish the fund’s prevailing NAVPU as well as the year-on-year and the year-to-date return on investment in major dailies at least once a week. The investor should, however, compare performance of products with similar investment parameters for a more objective evaluation. - How is a UITF valued?
The UITFs are valued using the mark to market (MTM) method. The term “mark to market” means that the underlying investments of the fund are valued at “fair market value” or the current price at which that asset can be bought or sold. With MTM, investors get an accurate indication of what their units are currently worth. Net Asset Value (NAV) – The Net Asset Value of the fund is the sum total of all the funds’ underlying assets less fees and liabilities. Net Asset Value per Unit (NAVPU) – The NAVPU represents the price per unit of participation. It is computed as the NAV divided by the total number of units of participation in the fund. - Which NAVPU is used when I subscribe or redeem?
When an investor subscribes to the fund, the number of units that he/she will obtain will be based on the NAVPU that will be released at the end of the banking day. Similarly, when an investor redeems, the NAVPU that will be used for computing the redemption proceeds is the NAVPU that will be published at the end of the day. - Can a client invest in more than one type of UITF?
Yes. Clients may diversify their investments across various UITFs as long as the funds are in line with their own investment objective, and they can tolerate the risks involved with the funds. - Which type of UITF is suitable for an investor?
When choosing a UITF, investors should identify their needs and goals and match them against the investment parameters of the product. To determine the client’s suitability for a fund, the following factors have to be considered: investment capacity, or the amount available for investment; investment horizon, or how long a client can stay in the fund; risk profile, or how much price volatility the client is willing to take; and investment objective, whether the client wants income or capital growth. - Is there an indicative or guaranteed rate of return for UITF products?
No. Since UITFs are subject to the mark to market valuation method, the NAVPU may fluctuate depending on the volatility of the market. The return figures published by Security Bank only represent how the fund has performed in the past. This does not necessarily mean that the fund will give the same return over a similar period of time in the future. - How do investors keep track of the value of the UITF investment?
After subscribing into the UITFs, the client will receive a Confirmation of Participation or COP which states the total number of units that the investor was able to buy, and at what NAVPU those units were bought at. The investor can find out the value of his current investments by multiplying the total number of units he/she holds by the latest available NAVPU, which is published daily on the Security Bank website at https://www.securitybank.com/market-information/navpu/ - When does the investor get the proceeds of the UITF investment?
Payment to the investor will depend on the settlement period prescribed by the trustee. This may vary depending on the nature and settlement convention of the investments of the UITF product. - In what instruments can a trustee invest the fund?
The character and kind of investments which may be made by the trustee depend on the investment parameters set forth in the UITF Declaration of Trust or Plan Rules. BSP Regulations, however, prescribe that UITF fund investments shall be limited to bank deposits, securities issued by or guaranteed by the Philippine government or the BSP, tradable securities issued by the government of a foreign country, any political subdivision of a foreign country or any supranational entity, exchange listed securities, marketable instruments that are traded in an organized exchange, loans traded in an organized market, such other tradable investments as the BSP may allow.
Disclaimer
The contents herein are intended for general information purposes only and should not be used as basis for making decisions nor should it be regarded as a substitute for specific professional advice. No representation or warranty as to its accuracy, reasonableness, or completeness, express or implied, is hereby made. The views and opinions expressed in this article does not pertain to the any opinion, representation or position of SBC Trust in whole or in part. SBC Trust denies any liability that may arise out of any loss or may result in actual, direct, indirect, special, incidental or consequential damage from the use or reliance on any information provided.