Dr_PepPeR Posted July 31, 2007 Author Share Posted July 31, 2007 Doc Pep, Are all banks OFFER NAVPU different than their current market value? Why is this so. Please enlighthen. I have tried two banks (equity funds) and their OFFER NAVPU is way higher by 2% than their current NAVPU. So in effect you are charged an additional 2%. Regards Let me check on this. Technically there is only one NAVPU for the day. Whether you subscribe or redeem it should always be based on the current NAVPU for the day. If there is an offer NAVPU that is different from the current NAVPU either for buying or selling, then it is a violation of the Bangko Sentral ng Pilipinas Rules. Could you at least tell me which banks you are referring to? Quote Link to comment
bachelor25 Posted July 31, 2007 Share Posted July 31, 2007 ATTENTION: INVESTORS CLICK MY LINK>>>>> http://manilatonight.com/index.php?showtopic=36640 http://manilatonight.com/index.php?showtopic=36711 http://manilatonight.com/index.php?showtopic=36692 http://manilatonight.com/index.php?showtopic=36639 http://manilatonight.com/index.php?showtopic=36383 Quote Link to comment
G.I. Posted August 1, 2007 Share Posted August 1, 2007 Let me check on this. Technically there is only one NAVPU for the day. Whether you subscribe or redeem it should always be based on the current NAVPU for the day. If there is an offer NAVPU that is different from the current NAVPU either for buying or selling, then it is a violation of the Bangko Sentral ng Pilipinas Rules. Could you at least tell me which banks you are referring to? i will mention only one bank, IEBANK. If this is a violation, then i need to get back to them. thanks again Quote Link to comment
juandelacruzband Posted August 1, 2007 Share Posted August 1, 2007 i will mention only one bank, IEBANK. If this is a violation, then i need to get back to them. thanks againYou may also want to check if you have an exit fee (held for less than 2 years) for your UITF. Maybe that could account for the "additional charge." Quote Link to comment
G.I. Posted August 1, 2007 Share Posted August 1, 2007 You may also want to check if you have an exit fee (held for less than 2 years) for your UITF. Maybe that could account for the "additional charge."nope. you may want to check their website ibank.com.ph where they post their BID and OFFER NAVPUs Quote Link to comment
Dr_PepPeR Posted August 1, 2007 Author Share Posted August 1, 2007 i will mention only one bank, IEBANK. If this is a violation, then i need to get back to them. thanks again I took a look at iBank's webpage and went to see their Large Cap Philippine Equity Portfolio UITF. Their pricing is stated below verbatim: Pricing Method: Dual Pricing. Investors will purchase units at the OFFER NAV and sell units at the BID NAV So you are correct, there seems to be different NAVs for purchasing and selling units. I then took a look at their Declaration of Trust which is also online and I found this provision: ADMISSION AND REDEMPTION (Art. III)A. Participations may be accepted on any banking day subject to a 12:00 noon cut-off time. The cut-off time may beamended by the TRUSTEE upon which all branches distributing the said Unit Investment Trust Fund will be advised.B. Initial and subsequent participations are subject to a minimum holding period of NINETY (90) days. Redemptionsbefore the end of the holding period will be subject to an early redemption fee of 0.25% flat on the equivalent amountof the redemption or FIVE HUNDRED PESOS (PHP 500.00), whichever is higher.C. Redemption requests may be accepted on any banking day subject to a 12:00 noon cut-off time. Proceeds ofredemption requests received before the said cut-off shall be credited to the client’s designated account FOUR (4)banking days after receipt of such request.D. Admission and redemption will be based on the NAVpu for the particular banking day. The NAVpu shall be based onthe prevailing market value of underlying investments of the Fund at that time. Valuation shall be done in accordancewith market convention on marking-to-market of securities.E. Participation and redemption shall be paid in Philippine Pesos. My comment is this. The Declaration of Trust does not mention that their NAV will be computed differently for subscriptions and redemptions. If there has been no amendment of the Declaration of Trust approved by the BSP, then to me it looks like a violation, since there is no mention of dual pricing there. It is misleading to the general public who will rely on the published NAVPUs. But that is just my opinion. You might be in a better position to ask iBank why they are doing it this way. Quote Link to comment
labadabdab Posted August 3, 2007 Share Posted August 3, 2007 You should try East West UITF. Personal testimonial ito, mahusay service, tapos updated rates/NAVPU nila sa webpage ng bank. :thumbsupsmiley: Quote Link to comment
bachelor25 Posted August 8, 2007 Share Posted August 8, 2007 ATTENTION: INVESTORS CLICK MY LINK>>>>> U-BELT,MANILAhttp://manilatonight.com/index.php?showtopic=36640 TIMOG, EDSAhttp://manilatonight.com/index.php?showtopic=36711 ARANETA, CUBAOhttp://manilatonight.com/index.php?showtopic=36692 MAKATIhttp://manilatonight.com/index.php?showtopic=36639 BAGUIOhttp://manilatonight.com/index.php?showtopic=36383 Quote Link to comment
CodenameV Posted August 9, 2007 Share Posted August 9, 2007 IEBank's 90 day holding period are quite long. Banks like BDO allow you to withdraw your funds after a holding period of only 30 days. Quote Link to comment
Dr_PepPeR Posted August 9, 2007 Author Share Posted August 9, 2007 IEBank's 90 day holding period are quite long. Banks like BDO allow you to withdraw your funds after a holding period of only 30 days. Holding periods really vary among UITFs. Some banks have now scaled back their holding period to 30 days. For UITFs with long term horizons (more than 3 years) or for equity/balanced funds the holding period is normally 90 days. Quote Link to comment
tombone Posted August 9, 2007 Share Posted August 9, 2007 UITF of ING holding is 15 day but there should be a buffer fund that hold on for half a year, the rest can be move with in 15 day Quote Link to comment
anarkista Posted October 7, 2007 Share Posted October 7, 2007 Hi, Guys, nngayon lang ako nakabalik dito. Doc Pepper or anyone in the forum, I read somewhere (here I guess) that BSP does allow banks to provide guarantee into someone's investment, i.e., if after the holding period (or anytime actually), and the NAVPU went down, then, you have to live with that. My question is why do they prohibit that? What if, to attract more clients, the bank can guarantee a no-loss-of-investment as soon as holding period is met? What if the bank is willing to shoulder the possible loss of your investment in exchange for it having more clients? I don't know if my question is making sense at all... Thanks! Quote Link to comment
Dr_PepPeR Posted October 8, 2007 Author Share Posted October 8, 2007 (edited) Hi, Guys, nngayon lang ako nakabalik dito. Doc Pepper or anyone in the forum, I read somewhere (here I guess) that BSP does allow banks to provide guarantee into someone's investment, i.e., if after the holding period (or anytime actually), and the NAVPU went down, then, you have to live with that. My question is why do they prohibit that? What if, to attract more clients, the bank can guarantee a no-loss-of-investment as soon as holding period is met? What if the bank is willing to shoulder the possible loss of your investment in exchange for it having more clients? I don't know if my question is making sense at all... Thanks! UITFs like any other trust product, are mandated by the BSP that they are absolutely not allowed to guarantee rates. This means neither income nor principal are guaranteed. This is to differentiate them from a traditional bank product that offers fixed rate, but of course, relatively lower potential returns. UITFs are supposed to be more of an investment, and therefore subject to the risks attendant to it, as opposed to a bank deposit, which is primarily for savings. So trust products are for specific types of clients, those who are sophisticated enough to understand and live with the risks attendant to higher yields and have the 'risk' funds for this. UITFs have no reserves, no PDIC coverage and of course no guaranty of return but it also offers potentially better yields. A bank cannot shoulder the possible loss since then it would be deemed to be an insurer. Well, those are the rationales for the non-guaranty of income or principal. Trust departments are absolutely prohibited from doing so, especially in UITFs, where they are supposed to explain this properly to a client. Your question sir does make sense. It's just that banks are simply not allowed to do it. Edited October 8, 2007 by Dr_PepPeR Quote Link to comment
anarkista Posted October 9, 2007 Share Posted October 9, 2007 Thanks, Doc Pepper. As usual, you have been of great help. This question is really part of a bigger concern. I am currently investing in the stock market. (By the way, your UITF thread has been very helpful to me since last year when I started with equity funds of BPI.) I have 3 friends who are investing with me. Our arrangement is that I will invest our money, and I get a certain percentage of the profit but I will not share any losses. I am actually a bit OK here. This is an informal arrangement among the four of us. And so far, we are OK with that arrangement. Before the end of the year, I would like to make everyhting legally binding. A contract will be signed saying so and so. I will look into that later. My next question is what if I am willing to ask some potential clients, say former colleagues, classmates, or relatives, to join me in this investment. I alreay have a design on how I should go with this. Now, I am ok with the present arrangement that I have -- that I get a certain percentage of profit, and I will not share any possible loss. There is no "lockup" period because I would not share any loss anyway. Now, this might be attractive to some if they can take risk. However, for those who are a bit risk-averse, the stock market is a no-no. To convince potential clients, is it legal for me as an individual person (as against bank instuitutions that are covered by your reply above) to draft a legal contract offering an arrangement that will guarantee their investment as long as they maintain their investment for a certain lockup period? The way I see this, this is similar to asking for a loan and making a guaranteed payment over a certain period of time. The only difference is that the interest may vary from 0% to a higher interest rate. Payment is still guaranteed. In exchange for this guarantee, they have to maintain that investment with me for, say, 1 or 2 years, and a higher percentage for me if there is profit. I hope I am not taking much of your time, Doc Pepper. Quote Link to comment
Dr_PepPeR Posted October 9, 2007 Author Share Posted October 9, 2007 Thanks, Doc Pepper. As usual, you have been of great help. This question is really part of a bigger concern. I am currently investing in the stock market. (By the way, your UITF thread has been very helpful to me since last year when I started with equity funds of BPI.) I have 3 friends who are investing with me. Our arrangement is that I will invest our money, and I get a certain percentage of the profit but I will not share any losses. I am actually a bit OK here. This is an informal arrangement among the four of us. And so far, we are OK with that arrangement. Before the end of the year, I would like to make everyhting legally binding. A contract will be signed saying so and so. I will look into that later. My next question is what if I am willing to ask some potential clients, say former colleagues, classmates, or relatives, to join me in this investment. I alreay have a design on how I should go with this. Now, I am ok with the present arrangement that I have -- that I get a certain percentage of profit, and I will not share any possible loss. There is no "lockup" period because I would not share any loss anyway. Now, this might be attractive to some if they can take risk. However, for those who are a bit risk-averse, the stock market is a no-no. To convince potential clients, is it legal for me as an individual person (as against bank instuitutions that are covered by your reply above) to draft a legal contract offering an arrangement that will guarantee their investment as long as they maintain their investment for a certain lockup period? The way I see this, this is similar to asking for a loan and making a guaranteed payment over a certain period of time. The only difference is that the interest may vary from 0% to a higher interest rate. Payment is still guaranteed. In exchange for this guarantee, they have to maintain that investment with me for, say, 1 or 2 years, and a higher percentage for me if there is profit. I hope I am not taking much of your time, Doc Pepper. If you are asking if this is all legal, it would seem so. Remember that the BSP rules cover only banks, investment houses and quasi banks. As an individual, you are free to contract with other individuals provided it is not contrary to law, morals, public order etc etc. If they agree to your terms, then you can stipulate what you want. Hope this helps. Quote Link to comment
anarkista Posted October 10, 2007 Share Posted October 10, 2007 Sounds good, Doc. The way I see it, there's nothing illegal here. As always, you've been of great help. Thanks, Doc! Quote Link to comment
bantz03 Posted December 15, 2007 Share Posted December 15, 2007 how much is the minimum investment ??? masyadong malalim na pinagsasabi nyo but it seems its kinda interesting. Do you mind giving me a small tip naman para medyo maliwanagan ako Quote Link to comment
Dr_PepPeR Posted December 27, 2007 Author Share Posted December 27, 2007 how much is the minimum investment ??? masyadong malalim na pinagsasabi nyo but it seems its kinda interesting. Do you mind giving me a small tip naman para medyo maliwanagan ako Actually the minimum amount depends on which UITF you decide to invest in. Some Funds accept as low as P5,000.00 minimum opening amount. I suggest you ask the reputable unibanks and commercial banks, either thru their Trust Departments or their branches, but not all commercial banks have UITFs. If you have anything specific in mind, such as investment horizon, objectives, risk appetite, let me know and I'll try to answer it as best as I can. Quote Link to comment
extreme1 Posted January 18, 2008 Share Posted January 18, 2008 (edited) guys if you would only know ForEx trading, you will realize that it is better than stock trading or buying mutual funds. although the ForEx market is the largest financial market, it is still an unfamilliar terrain to Filipino Investors. it is also the most liquid investment that you could have. In stocks, there is only a way one way profit potential but ForEx trading there is still potential for income even if the value of the currency depreciates in value. For questions and Queries just send me a pm or contact me at 09** *** **** Public posting of contact numbers on the board is not allowed. Please refer to the Posting Primer for your guidance. Thank you. - DarkAngel Edited February 4, 2008 by DarkAngel Quote Link to comment
Meloy Posted January 29, 2008 Share Posted January 29, 2008 is it the right time to get into mutual funds considering the impending recession? sorry for this question, just found this thread and im in the lookout for investment opportunities Quote Link to comment
Google Posted January 30, 2008 Share Posted January 30, 2008 is it the right time to get into mutual funds considering the impending recession? sorry for this question, just found this thread and im in the lookout for investment opportunities i think the answer is yes, but do not venture into equities fund as of yet. probably money market funds or bond funds are the most feasible now. but as the investors will say, buy now while it is low, kasi there is a probability that it will go up high soon. Quote Link to comment
Dr_PepPeR Posted January 31, 2008 Author Share Posted January 31, 2008 i think the answer is yes, but do not venture into equities fund as of yet. probably money market funds or bond funds are the most feasible now. but as the investors will say, buy now while it is low, kasi there is a probability that it will go up high soon. I guess I agree, just consider that equity/balanced UITFs will generally follow the rise and fall of stocks, so if the market is down, there are certainly opportunities to buy. On the other hand, when you look at fixed income UITFs, the general rule is when interest rates go down, the NAVPUs go up, so we will probably see a rise in fixed income UITF NAVPUs especially since the BSP Monetary Board will probably slash the overnight rates when they meet this afternoon. Quote Link to comment
kamandag7 Posted April 19, 2008 Share Posted April 19, 2008 pass by lang doc are you a banker you seems to know many investment or maybe you have so much fund that are overflowing & need to invest. Quote Link to comment
Dr_PepPeR Posted April 22, 2008 Author Share Posted April 22, 2008 pass by lang doc are you a banker you seems to know many investment or maybe you have so much fund that are overflowing & need to invest. Thank you for passing by sir. If my funds were overflowing I wouldn't have to work and just spend it all in those places in the other thread. I just happen to know a bit on investments, but really, its just a bit. Considering the interest rate scenario we are in now, not too many people have an interest in UITFs at present. We can only wait and see what will happen, just like everyone else who seems to be hedging on taking positions. Quote Link to comment
Google Posted May 30, 2008 Share Posted May 30, 2008 Thank you for passing by sir. If my funds were overflowing I wouldn't have to work and just spend it all in those places in the other thread. I just happen to know a bit on investments, but really, its just a bit. Considering the interest rate scenario we are in now, not too many people have an interest in UITFs at present. We can only wait and see what will happen, just like everyone else who seems to be hedging on taking positions. i agree with you bro. i also had a meeting yesterday with a colleague from the insurance industry, and also because of the volatility of our stock market now, even their products which have UITF tie-ups (variable life type of product) is also suffering. Quote Link to comment
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