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    UITF

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    Nina Cruz
    A UITF is an investment vehicle that pools money from multiple investors and is professionally managed by a bank trust department. UITFs offer diversification, liquidity, and access to different markets like bonds and stocks. The net asset value of a UITF is calculated daily based on the market value of its holdings and represents the value per unit held by investors.

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    UITF

    Uploaded by

    Nina Cruz
    32 views12 pages
    A UITF is an investment vehicle that pools money from multiple investors and is professionally managed by a bank trust department. UITFs offer diversification, liquidity, and access to different markets like bonds and stocks. The net asset value of a UITF is calculated daily based on the market value of its holdings and represents the value per unit held by investors.

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    A UITF is an investment vehicle that pools money from multiple investors and is professionally managed by a bank trust department. UITFs offer diversification, liquidity, and access to different markets like bonds and stocks. The net asset value of a UITF is calculated daily based on the market value of its holdings and represents the value per unit held by investors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views12 pages

    UITF

    Uploaded by

    Nina Cruz
    A UITF is an investment vehicle that pools money from multiple investors and is professionally managed by a bank trust department. UITFs offer diversification, liquidity, and access to different markets like bonds and stocks. The net asset value of a UITF is calculated daily based on the market value of its holdings and represents the value per unit held by investors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 12

    UNIT INVESTMENT

    TRUST FUND
    What is a fund?

    - Is an investment vehicle
    - Provide access to the financial market (bonds,
    equities, etc.)
    - Pools your money with other investors
    - Managed by professional fund managers
    Key differences between UITFs and Mutual Funds

    UITFs Mutual Funds


    Regulator Bangko Sentral ng Pilipinas Securities & Exchange Commission
    Structure Contractual Corporate
    Instrument Units of participation Common Shares
    Governance Bank Trust Committee Board of Directors
    Management Bank Trust Department Independent Investment Company
    Sales License No licensing required Sales agents need SEC license to sell
    Annual No Yes
    Stockholders
    meeting
    How does a Fund work?

    Investors

    Fund
    Returns
    Managers

    Securities
    Benefits vs. Risks of investing in funds

    Benefits Risks
    • Potential higher returns • Returns are not guaranteed
    • Affordability • Not insured by PDIC
    • Professional management
    • Diversification
    • Liquidity
    • Investor information
    • Transparency
    Types of UITF

    1. Money Market Funds – invested principally in short-term, fixed income


    deposits and securities with portfolio duration of one year or less.
    2. Bond Funds - Bond Fund invest in a portfolio of bonds and other similar
    fixed income with portfolio duration that may exceed one year.
    3. Balanced funds – invest in a diversified portfolio of bonds and stocks
    where investment in stocks shall be up to a maximum of a 40% to 60% of
    fund.
    4. Equity fund – invest substantially in equities. Cash maybe kept for
    liquidity and portfolio rebalancing purposes.

    Presentation Title

    1/30/2023 6
    Special UITFS

    1. Feeder funds - a UTF structure that mandates the


    fund to invest at least 90% of its assets in a single
    collective scheme.
    2. Fund of funds – a UITF structure that mandates the
    fund to invest at least 90% of its asset in more than 1
    collective scheme.
    What is Net Asset Value?

    Net Asset Value is a summation of the market value of each


    investment less fees, taxes, and other qualified expenses

    - All UITFs are to be marked-to-market on a daily basis


    - Mark to Market (MTM) is an act of assigning a value to a
    position held in a tradable financial instrument based on the
    current market price for that instrument.
    - Under a the MTM method of valuation, the value of the
    investment is constantly adjusted based on a market rate
    What is a Net Asset Value

    Cash / deposit +
    Accrued interest on deposits and fixed income securities +
    All other assets and receivables +
    GROSS ASSET VALUE

    Accrued Taxes Payables -


    Accrued Trust Fee payables -
    Other accrued expenses -
    Accounts payable -
    All other liabilities -
    NET ASSET VALUE
    NAVPU Valuation Methodology

    Net Asset Value per Unit (NAVPU) is computed by


    dividing the funds total NAV by the total outstanding
    units.

    NAVPU = Net Asset Value


    Total Outstanding Units of Participation
    ROI Computation
    Simple Return = (current NAVPU/beginning of period NAVPU)-1

    Fund NAVPU
    03/19/21 115
    02/19/21 112
    01/19/21 113
    12/29/20 110
    03/19/20 105
    12/31/03 102

    Past 1 Mo.: (115/112)-1=2.68%

    Year-To-Date (YTD) (115/110)-1=4.55%

    Year-On-Year (YOY) (115/105)-1=9.52%

    Since inception Date (115/102)-1=12.75%


    Fund Benchmark

    A benchmark is a standard against which the performance of a


    fund or investment manager can be measured.

    In choosing the benchmark for a funds, it is important that the


    benchmark and the fund are composed of similar securities

    Market index – a market index is an aggregate value produced


    by combining several stocks or other investment vehicles
    together and expressing their total value against a base value
    from a specific date. Market indexes are intended to
    represent an entire market and thus track market’s changes
    over time.

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