The SB Peso Asset Variety Fund aims to achieve long term growth by
diversifying into equity and other marketable instruments like government and corporate bonds.
The objective of the Fund is to achieve long term growth by investing in a diversified portfolio of select equity investments listed in the Philippine Stock Exchange, and other marketable instruments like government securities and corporate bonds.
The mandate of the Fund shall be up to a maximum of 41% up to 60% in equities. The Fund aims to surpass its benchmark which is 45% Philippine Stock Exchange Index + 45% Bloomberg Philippine Sovereign Bond Index AI+ 10% O/N Special Savings Account (net of withholding tax).
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.
SB Peso Asset Variety Fund is suitable only for investors who:
Note: The NAVPU shall be computed at the end of each Banking Day and shall be made available to investors the following Banking Day
Investments (and risk) are spread across
various asset baskets industry wide.
You can subscribe and redeem on
any banking day.
You can start investing in UITFs
with just P10,000.
Seasoned fund managers constantly
monitor markets for opportunities.
You can check the value of your
investment daily with NAVPU.
Management and regulation of UITFs are
governed by the Bangko Sentral ng Pilipinas.
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.
A UITF (or Unit Investment Trust Fund) is an open-ended pooled trust fund denominated in pesos or any acceptable currency, which is operated and administered by a trust entity. Each UITF Fund 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 other deposits and securities. Individuals and institutions take part in the UITF by purchasing units of participation in the fund.
UITFs and Mutual Funds are both investment vehicles where you join other investors and companies to pool a fund, which will be handled by a professional fund manager. This fund will be invested in a diversified basket of stocks, bonds, and other similar funds. Investing in UITFs buys you units in the fund while investing in Mutual Funds buys you shares. In addition, most Mutual Funds charge a front-end load, which can be as much as 2% of the initial investment, while UITFs typically do not.
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.
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).
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.
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.
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.
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.
When an investor subscribes to the fund, the number of units that he 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.
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.
When choosing a UITF, an investor should identify their needs and goals and match them against the investment parameters of the product. To determine the clients’ suitability to 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 client wants income or capital growth.
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.
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 holds by the latest available NAVPU, which is published daily on the Security Bank website at https://www.securitybank.com/market-information/navpu/
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.
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 qualified investors or buyers and not for the financially unsophisticated investors. This material is not intended to be comprehensive and does 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 the topic therein. This material is 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. Past performance is not indicative of future returns. Returns may fluctuate depending on market price movements. In no case shall this material be taken as an offer to engage in investment or trading. The contents are herein subject to change without prior notice.  The NAVPU is only indicative of the value of investment as of a certain date. However, for redemption, please note that the NAVPU will be not be known until the end of a certain business date.  Investments in UITFs are trust agreements, not deposit accounts. They do not have a guaranteed rate of return and are not insured by the Philippine Deposit Insurance Corporation (PDIC). Any loss or income of the fund is for the account of the Trustor/Investor. Historical performance, when presented, is purely for reference and not a guarantee of future results. Charges made against the fund are in the form of trust fees, taxes and qualified expenses. The Trustee (Security Bank – Trust Division) is not liable for the losses except for gross negligence, fraud or bad faith.