SB Global Equity Index Feeder Fund

The Global Equity 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 FeederFund
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

Investment Commentary (as of March 31, 2018)

  • Although stocks hit record highs in key markets at the beginning of the period ended March 31, a sudden change in market sentiment brought a return of volatility, ending a prolonged period of calm. Tax legislation was passed in the United States, but U.S. investors grew concerned that a tightening labor market would lead to higher wages, inflation, and a more aggressive approach to interest rate hikes by the Federal Reserve. Concerns also arose about the possibility of tariffs leading to a trade war between the United States and China. The European economy continued on a path of broad improvement, and markets in the Asia-Pacific region were helped by robust economic and business activity.
  • For the quarter, the FTSE Global All Cap Index returned .0.86%.
  • Consumer goods (.3.1%), financials (.0.8%), and oil and gas (.3.6%) detracted most from performance.
  • Technology (+3.3%), consumer services (+0.5%), and health care (+0.0%) were contributors.
  • For the 12 months ended March 31, 2018, the index returned 15.25%. The five highest-weighted contributors added to the index’s return. Financials (+16.2%), technology (+27.6%), and industrials (+17.6%) were the top contributors.

Target Fund Information and Performance

QUICK FACTS

Target Fund Vanguard Total World Stock ETF
Benchmark FTSE Global All Cap Index
Expense ratio 0.11%
Dividend schedule Quarterly
ETF total net assets $10,577 million
Fund total net assets $14,783 million
Inception date June 24, 2008

TOP TEN COUNTRY HOLDINGS (as of 31 Dec 2017)

United States 52.0%
Japan 8.4%
United Kingdom 6.0%
Canada 3.2%
France 3.2%
Germany 3.0%
China 2.9%
Switzerland 2.6%
Australia 2.3%
Korea 1.8%

RATES AND RANKING (as of 31 Dec 2018)

VTI (Inception 06/24/2008) Quarter Year to date 1 year 3 years 5 years 10 years Since inception
Net asset value (NAV) return -13.07% -9.67% -9.67% 6.86% 4.48% 9.61% 4.90%
Market price return -13.06 -9.79 -9.79 6.80 4.40 9.50 4.88
Spliced Total Stock Market Index -13.11 -9.74 -9.74 6.86 4.57 9.85 4.87
FTSE Global All Cap Fair Value Idx -13.04 -9.70 -9.70 6.93 4.05

FTSE All-World Index through December 18,2011, and FTSE Global All Cap Index thereafter. Benchmark returns are adjusted for withholding taxes.

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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