Large Capitalization Philippine Equity Portfolio's strategy is to approximate the returns of the PHISIX index while adding value through active stock selection. Its core investment components are large capitalization stocks of the PHISIX. Relative weights between PHISIX stocks as well as opportunistic allocation into non-index issues (e.g. IPO's) may vary from time to time depending on the investment manager's outlook on stock valuations. Research plays a central role in the development of stock valuation views of the investment manager. iFund Large Cap is ideal for investors with a long-term investment horizon seeking capital growth.
March 1, 2005
Currency of Participation:
The Fund is a peso-denominated fund that uses a strategy that approximates the returns of the Philippine Stock Exchange Index (PSEi), while adding value through active stock selection. Its core investment components are large capitalization stocks listed in the PSE. Relative weights between PSEi stocks as well as opportunistic allocation into non-index issues (e.g. IPO’s) may vary from time to time, depending on the investment manager’s outlook on stock valuations. Research plays a central role in the development of stock valuation views of investment managers.
1. Market Risk - HIGH
- Proper diversification strategies are utilized to minimize the effects of adverse movements in market prices. - Value-at-Risk limit: 7.00% in 1 day within 99% Confidence Level
Market Risk - Stock prices are highly volatile and can be affected not just by the company’s performance but also by other factors such as the country’s economic climate, political conditions and acts of nature.
Value-at-Risk (VaR) – is an estimate of the magnitude of loss that a portfolio can experience within a given period of time under certain probability assumptions, or confidence level. For example, a portfolio VaR of 5% within 1 day under a 99% confidence level means that there is 99% certainty that the maximum possible loss a portfolio can experience in 1 day is 5% of its value. Said in the reverse, portfolio losses greater than 5% of its value in 1 day are possible, but the probability of such occurrence is less than 1%.
VaR is often used as a risk measurement tool in portfolio management. The VaR of a portfolio varies depending on the kinds of assets put into the portfolio and their correlation to each other. Portfolios with lowly-correlated assets (i.e. diversified portfolio) tend to have a lower VaR than portfolios with highly-correlated assets. Examples of assets with a traditionally low correlation to each other are stocks and bonds – i.e. when stock prices increase, bond prices normally decrease and vise versa.
Confidence Level – is a statistical range with a specified probability that a given parameter lies within the range. It is a range constructed from sample data (i.e. past observations). A 99% confidence level gives 99% certainty that values would fall within the specified range.
To ensure adequate liquidity to meet daily fund withdrawals, at least 25% of investments will be in highly liquid instruments
Initial NAV per unit:
Designed for investors with a long-term investment horizon
- 90 day minimum holding period - Early redemption fee of 0.25% flat on redeemed amount or PHP500, whichever is higher
Subject to Bangko Sentral ng Pilipinas regulations governing the creation, administration and investments of Unit Investment Trust Funds as outlined in BSP Circular 447 Series of 2004 and Section UX410 of the Manual of Regulations for Banks.
Mark-to-market value of the Fund revalued daily less fees and applicable taxes
Acceptance & Withdrawal Procedure:
Investments into the fund may be accepted on any banking day, at the prevailing NAV per unit. All investments and withdrawals should be processed before 12 noon. Withdrawals will be funded four (4) banking days after the date of transaction.
Withdrawals will be funded four (4) banking days from the date of transaction.
2% p.a. based on the total market value of the fund.
Asset Allocation Limits
Large Capitalization equity issues listed in the Philippine Stock Exchange
Bank certificates of time deposit
Middle capitalization equity issues listed in the PSE
Account Opening Procedures
Accounts may be opened at any UnionBank branch
Only cleared funds from an UnionBank savings account are acceptable for investment
Investments and withdrawals may be made at any UnionBank branch
All Unit Investment Trust Funds (UITFs) are regulated by the Bangko Sentral ng Pilipinas. UITF investments are not insured with the PDIC and do not carry a guaranteed rate of return. Past performance is not necessarily a guide to future performance. Gains and losses are solely for the account of the investor. A copy of the BSP-approved UITF Plan is available for inspection by any UITF investor.