UITF (Unit Investment Trust Funds)

[Lightspeed]

^^ Yah! What a very pleasant New Year's gift

I think it has something to do with the lower rates fetched by the bonds that contributed to higher yields.

I always get this relationship mixed-up. Tama ba ito, Mr. tidus?

[PinaTigaS]

Hi guys, meron ba sa inyong meron nung MIB Plus Fund? I'm reading an excel sheet of banks offering UITF and theirs (Multinational Investment Bancorporation) stood out at 33.574 %YTD. Typo ba 'to o ano.

Peso Bond and Fixed Income rated at 14.62567 and 11.42151 respectively.

[cramnhoj]

^^ Yah! What a very pleasant New Year's gift

I think it has something to do with the lower rates fetched by the bonds that contributed to higher yields.

I always get this relationship mixed-up. Tama ba ito, Mr. tidus?

I only picked up the certificate today for a BDO Fixed Income fund placement that was placed last month and was happy too see the gain .

Probably, the lower rates of current bonds made the bonds held by bond funds more valuable. Since it's marked-to-market that doesn't necessarily mean those bonds were already sold to get the gains. And seeing that the funds performance page of BDO's UITFs haven't been updated since end of November, makes me think that they have been holding on to the bonds. 7year t-bonds are now at 9%, whereas at the last auction they were at 10.5% which was back in november. With evat to stay, it might mean interest rates would continually go down making current bonds' prices appreciate as time goes by, but that's just my guess.

[tidus1203]

^^ Yah! What a very pleasant New Year's gift

I think it has something to do with the lower rates fetched by the bonds that contributed to higher yields.

I always get this relationship mixed-up. Tama ba ito, Mr. tidus?

Well a lot of the bonds generated substantial capital gains due to supposedly improving government fundamentals. This also applies to the dollar sovereign bonds (ROP's). Well I no longer have the Peso Bond Fund since I switched it into Dollars but hey the greens are also growing at terrific pace.

Lower current market rates will increase prior bonds (with higher coupons of course) to increase its price....

[ojaja]

OT:
In bdo, whats the difference between Smart Money Fund and UITF fund?

[tidus1203]

Those Smart Money Funds are CTF's and are the grandfather of the now modern day UITF's. UITF's use marked-to-market valuation in determining the value of the fund and is now compliant to international standards in valuating funds, the CTF's well use an antiquated system which to be honest I don't know how....

[Spyfrat]

taking profit is not a idea for now. shifting to $ back fund might be a profitable alternative.

[rychu]

Can someone give me a UITF for dummies explanation?

[18th_Angel]

what's with the money market UITF? how do you earn from all of this? sorry... first time investor.. and i really want to invest my money on something worthwhile.is investing on a money market UITF really is the way to go?Can someone shed a light on this one? thanks.

[DaNa8]

^^^
From BDO website:

BDO Peso Money Market Fund
The BDO Peso Money Market Fund is a peso-denominated fixed-income fund suited for corporate and individual clients who are risk averse and are looking for safe investments with yields higher than those of savings and time deposit accounts. This Fund aims to preserve capital and generate income from low risk investments by investing the Fund in fixed-income securities with a portfolio weighted average life of not more than one (1) year. Minimum investment is P100,000.

But why don't you try their Bond Fund. It's really doing good with 11.42% yield for 9 months (April - Dec 2005).

[tidus1203]

Can someone give me a UITF for dummies explanation?

Go to investopedia.com, type there mutual funds and read what a mutual fund is. Now UITF is like a mutual fund except its not as actively managed meaning they dont trade heavily which I also see as an advatage really. UITF's are more like position traders thus saving them transaction costs while mutual funds are like short term traders and they have higher transaction costs due to frequent trading. UITF's have no sales load whatsoever, another advatage I see from it against mutual funds. UITF issuers are normally banks, mutual funds are issued by investment companies which sometimes are banks, insurance companies and even the mutual fund being the company itself.

As for investing in UITF, its either BDO or Metrobank for me mataas mga past yields ng UITF nila. BDO has already earned my tust been with their UITF since July of 2005 pa starting with the Peso Bond Fund and very impress ako sa returns as in.... I got like 17.8% (annualized) in like 5 months. But I took advantage of the falling dollar and switched it into USD and now am trying $ Bond Fund. So far its okay mas mabagal kaysa Peso Bond Fund but at leats my money is growing in greens rather than trash 3rd world currency....

[caryatid_kitten]

one of BDO's UITF's require only 10k, would it be worth it to invest that little? What's the minimum investment I can make that would be "ok". Someone told me kasi, it's not worth it if I invest just the minimum.

I still have a LOT of saving to do

[finadv]

UITFs are usually issued by a Trust Department of a Bank..Mutual funds are issued by investment companies also called mutual fund companies..NOT INSURANCE companies. For example, Sunlife Asset Management is a fund management company that manages the Sunlife Prosperity Funds. Also, same goes with Philam Asset Management to their Philam Funds. It just so happens that both Sunlife and Philam have a "recall" that they are foremost an insurance company here in the Phil. BPI Asset Management, not the BPI Family or Savings Bank, manages their own funds as well..

IN TERMS OF FEES(for comparison only)
UITFS-Management,custodian,trust fees(as the case may be)
MUTUAL FUNDS-sales load(upfront)

HOLDING PERIOD
UITFS-yes
MUTUAL FUNDS-yes

SWITCHING TO OTHER FUNDS
UITFS-some like BDO
MUTUAL FUNDS-yes(for Sunlife and Philam)

OWNERSHIP
UITFS-units(NAVPU)
MUTUAL FUNDS-shares(NAVPS)

VALUATION
UITFS-daily
MUTUAL FUND-daily

YIELD/RETURN
UITFS-non-guaranteed and NOT covered by PDIC(it is not a deposit prod)
MUTUAL FUND-non-guaranteed also


SUPERVISION/REGULATION
UITFS-Banko Sentral ng Pilipinas(BSP)
MUTUAL FUND-SEC

[finadv]

one of BDO's UITF's require only 10k, would it be worth it to invest that little? What's the minimum investment I can make that would be "ok". Someone told me kasi, it's not worth it if I invest just the minimum.

I still have a LOT of saving to do

A P10,000 investment will still earn the same in proportion to a P1M investment. If the yield is 14% you earn that same return on your money regardless how much you have invested. There is no such thing as saving too little. Your P10,000 can go a long way.

[tidus1203]

Yeah especially if you're still young you will see the difference even if you save just P10k...

[ojaja]

tidus1203 when you transferred your investment from peso bond to dollar fund, did bdo require you to have a dollar before switching or bdo will just transfer and convert your peso to dollar?

[PinaTigaS]

Hi guys, I just got my certificate from BDO. Pag magdadagdag pala ako ng amount, ia-"OUT" pa nila yun then reapply with new amount? And the whole process takes 3 days?

By the way, meron bang UITF na pwedeng automatic debit from savings account? Kasi I'll be going abroad (work). Then I'm planning to remit money para derecho sana sa UITF, hopefully without a representative on my side to do the transaction. However, this seems impossible kasi kailangan talaga may pumunta sa bank to do the transaction for me. Hassle hehe.

[o8si5]

Yes, 3 days is the settlement (at least for BDO). Meaning the funds or cash will be available only after 3 days, then you can reinvest to another fund. Unfortunately, I also have asked BDO, they dont have that capability (yet) of having an auto-debit facility. Same goes for most uitfs and mutual fund companies. Sadly.

[tidus1203]

tidus1203 when you transferred your investment from peso bond to dollar fund, did bdo require you to have a dollar before switching or bdo will just transfer and convert your peso to dollar?

No you will have to source your own dollars there is just no way banks will switch your peso into dollard basta basta even if you're saying you're going to invest the dollars with them. As mentioned in the other "Where to buy dollar" thread you defintely need a plane ticket as a proof to get some dollars. So I redempt from the Peso Bond Fund and had taken the cash and swapped it with a black market trader (A Bank Manager I used to know when I sold bonds before) and then went back to BDO and manually placed the dollar notes into the $ Bond Fund. Hassle lang the teller has to write down ALL THE SERIAL NUMBERS OF EACH AND EVERY NOTE. And it took some time seeing it was 50 pieces of $100.

[ojaja]

No you will have to source your own dollars there is just no way banks will switch your peso into dollard basta basta even if you're saying you're going to invest the dollars with them. As mentioned in the other "Where to buy dollar" thread you defintely need a plane ticket as a proof to get some dollars. So I redempt from the Peso Bond Fund and had taken the cash and swapped it with a black market trader (A Bank Manager I used to know when I sold bonds before) and then went back to BDO and manually placed the dollar notes into the $ Bond Fund. Hassle lang the teller has to write down ALL THE SERIAL NUMBERS OF EACH AND EVERY NOTE. And it took some time seeing it was 50 pieces of $100.

haha hassle nga yun. nabasa ko nga *** thread tungkol sa dollar.
e kung hindi pumasa sa paginvest, akala ko baka biglang pumayag pag switching ang gagawin hehehe