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guy i have a question with regards to the UITF...

if you try to hold on that for maybe 5 yrs....will you get anything in the first, second....to the fifth year?...

 

 

UITF is different from stock market shares. In Stock Market shares they pay dividend

at the end of every year. As for UITF the profit that is made by fund manager from

the company they invested in is ploughed back into the fund. Of course some fund

manager will pay dividend for the year but frankly usually UITF don't pay dividend for

the profit they made but put the profit back into the unit fund you have invested in.

I even read that it is the fund manager's descretion to decide on whether to give dividend

or not. But before you want to invest in a certain fund, you should read the prospectus

and ask question and most likely they will inform you whether you will receive dividend.

But again as I say, most UITF don't pay diviidend.

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guy i have a question with regards to the UITF...

if you try to hold on that for maybe 5 yrs....will you get anything in the first, second....to the fifth year?...

 

============

 

Most UITF funds will not pay dividends. All profits (net of management fees) are invested back into the fund. For example: You invest P100,000 composed of 1,000 units of P100/unit on day 1. The P100/unit will increase daily such that it may be worth P105/unit on day 10. On day 10, your investment is now worth P105,000. You can withdraw the P5,000 if you want by withdrawing the equivalent number of UITF units.

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Very useful info here....

 

I lost a lot of money hanging on to foreign currencies for the last year or so. Euro has dropped from a highest P76 late December 2004 to P60+ something today. If you think in scale of tens of thousands of euros then that's a lot just for the currency rate drop. USD hasnt been going up either. So now I'm thinking of just converting all these to Peso and invest them in UITF or other better performing investments. Would you guys agree with this? If yes, can you point me to which bank currently has a better deal on this? I have already talked to Equitable PCI and the figures I got are 10-11% interest per annum based on last year's performance. The manager also told me that it is very rare that this goes lower than 9% so it seems ok with me. Do you have better suggestions?

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============

 

Most UITF funds will not pay dividends. All profits (net of management fees) are invested back into the fund. For example: You invest P100,000 composed of 1,000 units of P100/unit on day 1. The P100/unit will increase daily such that it may be worth P105/unit on day 10. On day 10, your investment is now worth P105,000. You can withdraw the P5,000 if you want by withdrawing the equivalent number of UITF units.

 

Unit Investment Trust Funds (UITF) are just like the old common trust funds. It is open ended, which means you go in or out as you please. If you are talking about dividend declaration, thesre is NONE as the nature of UITF is not like a stock wherein dividends are declared by the Board of Dirctors. The behavior of a unit of holding in a UITF is much like a share of stock wherein its market value changes everyday. So the earnings of a unitholder in a UITF will come from the rise in the market value of the unit, aside from the income of the assets of the fund itself. Both of these are used in computing the net asset value per unit (NAVPU) everyday and it is up to the unitholder to realize his profit by redeeming his units or just letting the fund manager try to increase the NAVPU as time goes by. So to be short about it, no dividends are declared for UITF by its very nature.

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Very useful info here....

 

I lost a lot of money hanging on to foreign currencies for the last year or so. Euro has dropped from a highest P76 late December 2004 to P60+ something today. If you think in scale of tens of thousands of euros then that's a lot just for the currency rate drop. USD hasnt been going up either. So now I'm thinking of just converting all these to Peso and invest them in UITF or other better performing investments. Would you guys agree with this? If yes, can you point me to which bank currently has a better deal on this? I have already talked to Equitable PCI and the figures I got are 10-11% interest per annum based on last year's performance. The manager also told me that it is very rare that this goes lower than 9% so it seems ok with me. Do you have better suggestions?

 

 

If you are in US$ just keep it as is and invest in a US Dollar UITF. Almost all the big banks have them and most of their assets are in ROPs and Dollar Time Deposits. Look at their historicals, they have been performing very well as they have been managing their ROPs very well. If you convert to Phil Pesos now you may lose on the conversion factor, particularly if you had bought it when the Phil Peso was doing poorly against the Dollar.

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