Unit Investment Trust Funds (uitf)

[tonyp]

Thanks, Sir, for your comments. I will take note of these. :-) I am checking the Citiseconline site now... Are you trading here?

 

Am a member. You can sign up for a free trial before you decide to join.

[anarkista]

I will always remember that, Doc. And tonyp, i am still reading through the site. Pag-isipan ko ng mabuti. Thanks, Sirs!

[taz31]

very interesting thread! learned a lot from this one! Dr pepper, di ka lang pala master dun sa kabilang thread, pati rin pala sa business very informed ka din! :cool:

 

my question is: do all banks have UITF? My savings account is with Banco de oro, meron ba sila UITF? how much po ang initial investment? Thanks sir!

[Dr_PepPeR]

very interesting thread! learned a lot from this one! Dr pepper, di ka lang pala master dun sa kabilang thread, pati rin pala sa business very informed ka din! :cool:

 

my question is: do all banks have UITF? My savings account is with Banco de oro, meron ba sila UITF? how much po ang initial investment? Thanks sir!

 

Sorry sir, but I am not a master of anything, let alone that other thread you speak of.

 

Not all banks have UITFs. To have a UITF product, a bank must first be licensed by the Bangko Sentral to engage in the trust business. Not all banks authorized to do trust have UITFs. In general, the big commercial banks have UITF products, and even non-bank financial companies have UITFs too.

 

Banco de Oro is considered one of the bigger banks and has about five UITFs, four are Philippine Peso denominated and one is in US Dollars. These are the ones I know of, together with the minimum initial investment amount:

 

UITF BDO Peso Bond Fund

Php 100,000

 

UITF BDO Fixed Income Fund

Php 10,000

 

UITF Balanced Fund

Php 10,000

 

UITF BDO Dollar Bond Fund

US$ 2,000

 

Hope that helps

Edited January 24, 2007 by Dr_PepPeR

[anarkista]

Galing ng mga funds ngayon! Pataas ng pataas... sana tuloy tuloy ito. :-)

[Dr_PepPeR]

Galing ng mga funds ngayon! Pataas ng pataas... sana tuloy tuloy ito. :-)

 

In a low interest rate scenario, expect the peso bond funds to do very well. There is an inverse relation between interest rates and NAVPUs for these types of funds. The equity/balanced funds are also doing well due to the healthy performance of the PHISIX. Expect some corrections around Chinese New Year, it may be a good time to go in.

[taz31]

Thanks for the reply Dr. Pepper. Might go later at BDO to inquire more about UITF. Tnx again!

[tommy69]

I would like to suggest that iinstead of asking the branch manager with regards to the UITF's , better ask an investment banker or a financial manager....

No offence to the branch managers out there but I think most of them don't understand uitf's also....

 

or if they did, they haven't explained it clearly to the investors out there.

[golfer697]

Good day sir! The behavior of NAVPUs of Peso UITFs vs. the interest rate is an inverse one, so that if interest rates go down, NAVPUs will generally go up. Thus, in an environment of low interest rates, expect the Peso UITFs to go up and up.

 

For Dollar UITFs it will be harder to predict but if Peso interest rates continue to fall, so much so that US Dollar investments become more attractive, then as US Dollar interest rates go up, then Dollar NAVPUs will fall. This would work for local Dollar investments like Time Deposits but there are many other factors that affect Dollar UITF NAVPU behavior, and it would depend on where a UITF fund is invested in order to make an educated guess based on fundamentals. Traditionally, most Dollar UITFs are invested in Dollar ROPs so it would be best to look at the contents of the Dollar UITF and compare its behavior with the ROPs.

 

Short term ROPs will usually go down while long term ROPs will usually go up on a low interest rate scenario.

 

Hope that helps, just post again if you need more clarification.

 

 

 

Thanks a lot Dr. Pepper!! That info will come in handy!!!

[tonyp]

I would like to suggest that iinstead of asking the branch manager with regards to the UITF's , better ask an investment banker or a financial manager....

No offence to the branch managers out there but I think most of them don't understand uitf's also....

 

or if they did, they haven't explained it clearly to the investors out there.

 

Agree with you. My UITF is with a BPI branch but most often I consult with BPI Capital.

[dexterhaba]

sorry medyo OT pero kailangan ko kasi ng prof advise,,, pano ba ihandle ang hard earned dollar mo? kasi pag nilagay ko sa time deposit or UITF ung dollar parang mas maganda pa itago mlang tapos intayin mo tumaas,, saka ka magpapalit to peso,, kung 100k USD ang pera ko,,, tumaas lang ng piso ang dollar eh 100 k pesos na un di ba? Mageeleksyon pa man din,,, so imbes na maghintay ka sa interest ng time deposit,,, ganun nalang diskarte,,, tama po ba mga masters??? Please advise naman,, thanks

[anarkista]

In a low interest rate scenario, expect the peso bond funds to do very well. There is an inverse relation between interest rates and NAVPUs for these types of funds. The equity/balanced funds are also doing well due to the healthy performance of the PHISIX. Expect some corrections around Chinese New Year, it may be a good time to go in.

 

Doc Pepper,

I would like to ask for a clarification in your statement. When you said that there would be some corrections around Chinese New Year, does this imply that the current performance of equity/balanced funds or PHISIX is abnormal?

 

Thanks in advance!

[anarkista]

Pahabol: What's with the Chinese New Year that make corrections probable?

[Dr_PepPeR]

sorry medyo OT pero kailangan ko kasi ng prof advise,,, pano ba ihandle ang hard earned dollar mo? kasi pag nilagay ko sa time deposit or UITF ung dollar parang mas maganda pa itago mlang tapos intayin mo tumaas,, saka ka magpapalit to peso,, kung 100k USD ang pera ko,,, tumaas lang ng piso ang dollar eh 100 k pesos na un di ba? Mageeleksyon pa man din,,, so imbes na maghintay ka sa interest ng time deposit,,, ganun nalang diskarte,,, tama po ba mga masters??? Please advise naman,, thanks

 

Its your choice really. While waiting for the peso to weaken, just keeping your dollars under your mattress will produce zero interest and something may happen to it. And if you are expecting the peso to weaken with respect to the dollar, it will take awhile.

[Dr_PepPeR]

Doc Pepper,

I would like to ask for a clarification in your statement. When you said that there would be some corrections around Chinese New Year, does this imply that the current performance of equity/balanced funds or PHISIX is abnormal?

 

Thanks in advance!

 

No, I am not implying anything. When I say correction, it just means that a trend may flatten or reverse. I really don't know why but there is usually a correction sometime during Chinese New Year, caused by the behavior of money supply, which in turn affects NAVPUs.