SB ESG Aware Equity Index Feeder Fund

An Equity Feeder Unit Investment Trust Fund

The SB ESG Aware Equity Index Feeder Fund allows investors to gain access to large and mid-cap U.S. stocks with positive ESG characteristics.

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Important Advisory:

We wish to inform you that we are changing the benchmark for the SB ESG Aware Equity Index Feeder Fund beginning November 1, 2024.

From: MSCI USA Extended ESG Focus Index

To: iShares ESG Aware MSCI USA ETF

Click here for more information.

For questions or clarifications, send us an email at [email protected]

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 this UITF 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.

You may refer to the Target Fund’s website (blackrock.com) / fact sheet for key information about the 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

Download Information and Investment Disclosure

Related downloads

Fund Name: SB ESG Aware Equity Index Feeder Fund

Fund Manager: Security Bank

Fund type: Equity Feeder Fund

-23.481309^%

Year to Date

-10.980803^%

1 Year

-24.736644^%

3 Years

-24.736644^%

6 Years

Starting Navpu

Time Frame Performance

Ending Navpu

Note: The NAVPU shall be computed at the end of each Banking Day and shall be made available to investors the following Banking Day

Fund Details

Target Fund	iShares ESG Aware MSCI USA ETF
Fund Type	Equity Feeder Fund
Inception Date	6 September 2022
Order Date (T)	Any Business Day within the Subscription Cut-Off Time and/or Redemption Cut-Off Time.
Subscription Settlement Date	On Order Date.
Redemption & Subscription Cut-Off Time	Up to 1:30 pm of any Business Day
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, 2025)

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 Bloomberg Ticker	ESGU

The effective expense ratio p.a is computed as follows:

SB ESG Aware Equity Index Feeder Fund – Trustee Fees	0.70%
iShares ESG Aware MSCI USA ETF/Target Fund – Management Fees*	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.	6.60%
NVIDIA Corp.	5.64%
Microsoft Corp.	5.57%
Amazon.com, Inc.	4.14%
Alphabet Inc. Class C	3.40%
Meta Platforms, Inc. Class A	2.62%
Tesla, Inc.	2.16%
Broadcom Inc.	1.81%
JPMorgan Chase & Co.	1.35%
Eli Lilly	1.27%
Total	34.56%

See our Latest Market Commentary

Investment Commentary
(as of March 31, 2025)

U.S. stocks fell further into the red to end Q1 as investors continued to react to macro events such as the U.S. trade policy announcements and changes. The S&P 500 posted a broad decline of 5.75%, after February’s 1.42% decline and a broad January 2.70% gain, bringing year-to-date returns in negative territory of 4.59%. The Dow Jones Industrial Average also lost 4.20%, while the Nasdaq-100 Index suffered a steeper 7.69% monthly loss.

The iShares ESG Aware MSCI USA ETF (ESGU) was down 5.18%. Defensive sectors including Consumer Staples (-2.79%), Health Care (-1.85%) and Utilities (+0.06%) strongly outperformed as investors sought safety, while Consumer Discretionary (-9.02%) and Information Technology (-8.87%) suffered the steepest declines. The Trump administration’s tariff announcements and tepid consumer spending negatively impacted cyclical sectors. Uptick in volatility has also led investors shifting to haven investments. The price of Gold surged above $3,000 per ounce for the first time, setting another new all-time high. According to Bloomberg, Global ESG ETF flows have also seen a rotation away from U.S. risk exposure and towards European and more globally diversified assets.

The Fed left interest rates unchanged at 4.25%-4.50% while citing higher levels of economic uncertainty. In its review, it reduced the expected 2025 growth rate down to 1.7% from December 2024’s 2.1%, the year-end 2025 unemployment expectation was increased to 4.4% from 4.2% and the inflation estimate for 2025 increased to 2.8% from the prior 2.5%. Expectations of two 0.25% interest rate cuts for this year remained unchanged with the next meeting taking place on May 7^th.

The U.S. imposed a 25% tariff on imports from Canada and Mexico, and increased tariffs on Chinese goods from 10% to 20%, leading to immediate retaliatory measures from these countries. These actions triggered substantial volatility in global markets as investors grew increasingly concerned about the potential for stagflation in the U.S. We think that the heightened uncertainty surrounding international trade policies will likely lead to a more cautious investment environment in the near-term and dampened economic growth projections worldwide.

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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 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, consequential damage from the use or reliance on any information provided.

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 Online Application Form completely or visit any SBC branch near you to start with your investment journey.

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Key Risks

Market/Price Risk – This is the possibility for the Fund to experience losses due to changes in market prices of equities or bonds. It is the exposure to the uncertain market value of these investments due to price fluctuations. It is the risk of the Fund to lose value due to a decline in securities prices, which may sometimes happen rapidly. The value of investments fluctuates over a given time period because of general market conditions, economic changes, or other events that impact large portions of the market such as political events, natural calamities, etc. As a result, the NAVPU may increase to make a profit or decrease to incur a loss.

Liquidity Risk – This is the possibility for the Fund to experience losses due to the inability to sell or convert the investments into cash immediately or in instances where conversion to cash is possible but at a loss. This may be caused by different reasons such as trading in securities with small or few outstanding issues, absence of buyers, limited buy/sell activity or an underdeveloped capital market. Liquidity risk occurs when certain investments in the Fund’s portfolio may be difficult or impossible to sell at a particular time which may prevent allowing withdrawal from the account with until its assets can be converted to cash. Even government securities which are the most liquid fixed income securities may be subjected to liquidity risk particularly when a sizeable volume is involved.

Counterparty Risk – This is the possibility for the Fund to be exposed to risks relating to the credit standing of its counterparties and to their ability to fulfill 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 incur losses, including declines in the value of its investment during the period in which the fund seeks to enforce its rights, inability to realize gains on its investment during such period and fees and expenses incurred in enforcing its rights under the contracts. There is also a possibility that the above contracts are terminated due, for instance, to bankruptcy, supervening illegality or change in the tax or accounting laws relative to those at the time the contracts were originated.

Foreign Exchange Risk – This is the possibility for the Fund to experience losses due to fluctuations in foreign exchange rates. The exchange rates depend upon a variety of global and local factors such as interest rates, economic performance, and political developments. It is the risk of the Fund to currency fluctuations when the value of such investments denominated in currencies other than the base currency (Peso) depreciates. Conversely, it is the risk of the Fund to lose value when the base currency (Peso) appreciates. The NAVPU of a peso denominated Fund invested in foreign currency denominated securities may decrease to incur losses when the peso appreciates.

Country Risk – This is the possibility for the Fund to experience losses arising from investments in securities issued by/in foreign countries due to changes in the political, economic and social structures of such countries. There are risks in foreign investments due to the possible internal and external conflicts, currency devaluations, foreign ownership limitations and fiscal/monetary policies of the foreign country involved which are difficult to predict but must be taken into account in making such investments. Likewise, brokerage commissions and other fees may be higher in foreign securities. Government supervision and regulations of foreign stock exchanges, currency markets, trading systems and brokers may be less than those in the Philippines. The procedures and rules governing foreign transactions and custody of securities may also involve delays in payment, delivery or recovery of investments.

Equity Risk – The value of the Fund that invest in equity and equity related securities will be affected by economic, political, market, sectoral, and issuer specific changes. Such changes may adversely affect securities, regardless of the Fund’s specific performance. Additionally, different industries, financial markets, and securities can react differently to these changes. Such fluctuations of the Fund’s value are often exacerbated in the short-term as well. The risk that one or more companies in the Fund’s portfolio will fall, or fail, or rise, can adversely affect the overall portfolio performance in any given period.

Stock Market Cyclical and Concentration Risk – Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices that will affect the Fund’s performance. In addition, the Fund’s targeted actual index may, at times, become focused in stocks of a particular market sector, which would subject the Fund to proportionately higher exposure to the risks of that sector.

Index Sampling Risk – The possibility that the securities selected for the Fund, in the aggregate, will not provide investment performance matching that of the Fund’s targeted actual index and its respective composition given the margin of variance allowed for the Fund.

TARGET FUND RISKS

Calculation Methodology Risk – The Underlying Index relies on various sources of information to assess the criteria of issuers included in the Underlying Index, including information that may be based on assumptions and estimates. Neither the Target Fund nor BFA can offer assurances that the Underlying Index’ calculation methodology or sources of information will provide an accurate assessment of included issuers.

Concentration Risk – The Target Fund may be susceptible to an increased risk or loss, including losses due to adverse events that affect the Target Fund’s investments more than the market as a whole, to the extent the Target Fund’s investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector, market segment or asset class.

Cybersecurity Risk – Failures or breaches of the electronic systems of the Target Fund, the Target Fund’s adviser, distributor, the Index Provider and other service providers, market makers, Authorized Participants or the issuers of securities in which the Target Fund invests have the ability to cause disruptions, negatively impact the Target Fund’s business operations and/or potentially result in financial losses to the Target Fund and its shareholders. While the Target Fund has established business continuity plans and systems. Furthermore, the Target Fund cannot control the cybersecurity plans and systems of the Index Provider and other service providers, market makers, Authorized Participants or issuers of securities in which the Target Fund invests.

ESG Investment Strategy Risk – The Target Fund’s ESG investment strategy limits the types and number of investment opportunities available to the Target Fund and, as a result, the Target Fund may underperform other funds that do not have an ESG focus. The Target Fund’s ESG investment strategy may result in the Target Fund investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards. The companies selected by the Index Provider as demonstrating ESG characteristics may not be the same companies selected by other index providers that use similar ESG screens. In addition, the companies selected by other Index Provider may not exhibit positive or favorable ESG characteristics.

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%)
Compare UITFs
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

DISCLOSURES

•THE UNIT INVESTMENT TRUST FUND (UITF) IS A TRUST PRODUCT AND NOT A DEPOSIT ACCOUNT AND IS NOT INSURED OR GOVERNED BY THE PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC).

•THE UITF IS NOT AN OBLIGATION OF, NOR GUARANTEED, NOR INSURED BY THE TRUST ENTITY OR ITS AFFILIATES OR SUBSIDIARIES.

•DUE TO THE NATURE OF THE INVESTMENTS OF A UITF, THE RETURNS/YIELDS CANNOT BE GUARANTEED. HISTORICAL PERFORMANCE, WHEN PRESENTED, IS PURELY FOR REFERENCE PURPOSES AND IS NOT A GUARANTEE OF SIMILAR FUTURE PERFORMANCE.

•ANY LOSSES AND INCOME ARISING FROM MARKET FLUCTUATIONS AND PRICE VOLATILITY OF THE SECURITIES HELD BY THE UITF, EVEN IF INVESTED IN GOVERNMENT SECURITIES ARE FOR THE ACCOUNT OF THE CLIENT. AS SUCH, THE UNITS OF PARTICIPATION OF THE CLIENT INTHE UITF, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN HIS/HER INITIAL INVESTMENT/CONTRIBUTION.

•THE TRUSTEE IS NOT LIABLE FOR LOSSES UNLESS UPON WILLFUL DEFAULT, BAD FAITH OR GROSS NEGLIGENCE.

•THE INVESTOR MUST READ THE COMPLETE DETAILS OF THE FUND IN THE UITF’S PLAN, MAKE HIS/HER OWN RISK ASSESSMENT, AND WHEN NECESSARY, SEEK AN INDEPENDENT/PROFESSIONAL OPINION BEFORE MAKING AN INVESTMENT.