SB Global Equity Index Feeder Fund

The SB Global Equity Index Feeder Fund allows you to invest in equities across developed and emerging markets around the world.

About the Fund

The SB Global Equity Index Feeder Fund aims to invest in equities across developed and emerging markets around the world through a Target Fund. The Fund seeks to track the performance of the FTSE Global All Cap Index.

We will be changing our Fund’s custodian from HSBC to Standard Chartered as part of our continuous efforts in finding the best rates for our customers. The shift shall lower our fund administration costs, ultimately boosting the returns of our Funds. This will be reflected in the KIDS as of April 2019.

Client Suitability

SB Global Equity Index Feeder Fund is suitable for investors who:

  • Has an aggressive risk tolerance
  • Seek potentially higher returns through investments in Global stocks and who can tolerate high price volatilities
  • Has the possibility to be exposed to capital losses given the volatile nature of the Global equity markets
  • Has an investment horizon of three to five (3-5) years
Fund Type Equity Index Feeder Fund
Inception Date July 2, 2018
Benchmark FTSE Global All Cap Index
Initial NAVPU USD 1.00
Business Day

A day (other than a Saturday or Sunday) on which banks are generally open for the transaction of business in Manila, Philippines and is a Banking Day of Vanguard Total World Stock ETF (the “Target Fund”).

 

Target Fund Name: Vanguard Total World Stock 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.)

Class A: 0.64%, Class B: 0.44%, Class F: 0.44%

Other Notes

Applicable holidays for this Fund: US, Singapore, and Philippine holidays

Class Minimum Initial Participation Minimum Subsequent Participation Minimum Redemption Minimum Holding Amount
Class A USD1,000.00 USD500.00 USD500.00 USD1,000.00
Class B USD5,000.00 USD1,000.00 USD1,000.00 USD5,000.00
Class F USD5,000.00 USD1,000.00 USD1,000.00 USD5,000.00

Class A – This Unit Class is open to all individuals and institutions and it is recommended but not limited to those who want to invest in small amounts. This is for individuals and Institutions looking for the flexibility to be able to invest in small amounts with no commitments of additional future subscriptions.

Class B – This Unit Class is only open to institutional investors that are duly registered with Securities and Exchange Commission and existing under the laws of the Philippines, such as partnerships, corporations, government financial institutions, educational institutions, organizations, and foundations, all subscribing on their own behalf, and the structures which such Institutional investors put into place for the management of their own assets. This is for institutions who deal in very large amounts and foresee themselves making very large individual transactions.

Class F – This Unit Class is open to individual investors that meet the Minimum Initial Participation required for the F Unit Class. This is primarily intended for High Net Worth Individuals looking to invest in the amount of USD 5,000 and above and foresee themselves making additional investments in the amount of USD 1,000 and above.

*High Net Worth (HNI) refers to a Wealth Management customer

Diversification is the only free lunch in investing.

(Updated April 7, 2021)

Offshore Equities markets performed relatively well despite the onslaught of the Pandemic in 2020. Superior returns were realized by US and North Asian Stock markets that carried the performance of our Feeder Funds. The US incurred the largest number of Covid cases, and also experienced a difficult political campaign period and transitioning, but its S&P 500 Index still generated decent double-digit returns. China also was able to provide solid Equity returns as it regenerated its economy faster providing anchor support to some Asean neighbors that benefitted from the supply chain relocation on trade. These countries managed the Covid pandemic more effectively and efficiently that despite new waves of virus spread, they were able to effect the correct policies, across medical, fiscal and monetary aspects, which allowed them to re-open their economies earlier.

This exceeds some economists’ expectations and it’s a number that will keep improving as vaccine production ramps up. Developed Markets is now on track to reach 72% vaccine coverage of the population with a significant acceleration in the UK while President Biden doubling the US target to 200mn doses for his first 100 days in office. The EU as a whole improved as well, but Germany, France, Poland and the Czech Republic declined. On the other hand, there are still about 40 to 50 economies that need to start vaccinating. We observe that in countries with over 20% of the total population vaccinated (i.e. UK, US, Israel, UAE), both infection and mortality were under control regardless of vaccine type, allowing a return to normalcy. While Israel provides a large sample of vaccination from Pfizer-BioNTech, UAE has distinguished itself with large vaccinations of Sinovac and later expanded to included other vaccines such as Russia’s Sputnik, Pfizer-BioNTech, and AstraZeneca. UAE has administered 73 doses per 100 people (vs US, UK, Israel: 36, 44, 112) and daily cases of infections/deaths are down ~2,000-3,000/~5 to 20, respectively. This early date suggests that vaccination provides protection, allows re-opening, and perhaps lowers infection rate, regardless of the vaccine type.

 

Download the full report here.

 

Disclaimer: The production of this material/video is to share the updates and/or views of the Fund Managers of Security Bank Corp. thru its Trust & Asset Management Group and the views expressed herein accurately and exclusively reflect his or her personal views. The Fund Managers updates and/or views are not intended to be comprehensive and do not purport to contain all the information that a prospective investor may require. The investor should not rely solely thereon without making any independent analysis or research on any topic covered by the video. The Fund Managers’ updates and/or views are not intended as a substitute for sound investment or risk management advice. No representation or warranty as to its accuracy, reasonableness, or completeness, express or implied is hereby made. In no case shall this material/video be taken as an offer to engage in investment or trading. Reproduction of this material/video, whether in whole or in part, is strictly prohibited without the prior consent of Security Bank Corporation.
Security Bank Corporation denies any liability that may arise out of any loss or may result in actual, direct, or consequential damage from the use or reliance on the content of this material/video. You acknowledge that you read and understood this Disclaimer and agree to be bound by the conditions therein. This applies to those with capable ability to invest in USD. If the fund source is purely in Peso, please note the addition of currency risk which has the additional impact of also enhancing or eroding returns.

Target Fund Information and Performance

 

QUICK FACTS

Target Fund Vanguard Total World Stock ETF
Benchmark FTSE Global All Cap Index
Expense ratio 0.08%
Dividend schedule Quarterly
ETF total net assets $16,916 Million
Inception date June 24, 2008

TOP TEN HOLDINGS

Apple Inc. 3.2%
Microsoft Corp. 2.5%
Amazon.com Inc. 2.1%
Alphabet Inc. 1.5%
Facebook Inc. 1.0%
Tesla Inc. 0.8%
Taiwan Semiconductor Manufacturing Co. Ltd 0.7%
Berkshire Hathaway Inc. 0.7%
Johnson & Johnson 0.6%
Tencent Holdings Ltd. 0.6%

PERFORMANCE HISTORY

VTI (Inception 06/24/2008) Quarter Year to date 1 year 3 years 5 years 10 years Since inception
Net asset value (NAV) return 15.57% 16.74% 16.74% 10.17% 12.55% 9.39% 7.41%
Market price return 15.53 16.65 16.65 10.13 12.52 9.35 7.40
Spliced Total Stock Market Index 15.70 16.63 16.63 10.14 12.55 9.46 7.38
FTSE Global All Cap Fair Value Idx 15.59 16.71 16.71 10.15 12.60 6.69

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end.

How to order

  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.

Why Invest?

Diversification

Investments (and risk) are spread across various assets 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).

Transparency

You can check the value of your investment daily with NAVPU.

Want to invest in the SB Global Equity Index Feeder Fund?

 

Key Risks

Interest Rate Risk – The possibility of an investment to experience losses due to change in interest rates.

Market/Price Risk – The possibility for an investor to experience losses due to changes in the market prices.

Liquidity Risk – The possibility for an investor to experience losses due to inability to sell or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss.

Credit Risk/Default Risk – The possibility for an investor to experience losses due to borrower’s failure to pay principal and/or interest in a timely manner.

Reinvestment Risk – The possibility of having lower returns of earnings when maturing funds or the interest earnings of funds are reinvested.

Foreign Exchange Risk – The possibility of an investment to experience losses due to fluctuations in foreign exchange rates.

Country Risk – The possibility of an investment to experience losses from an investment in a security issued by a foreign country due to changes in political, economic, and or social structures.

Other Risks – For Feeder Funds, the possibility of an investment to experience losses due to the Target Fund investing in emerging markets that may carry a higher risk than developed markets.

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.
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.

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