Current-Income Portfolio (T-Bill-91) is a peso-denominated unit investment trust fund that aims
to provide investors with quarterly income linked to the 91-day T-Bill rate. For the convenience
of investors, an automatic dividend payout feature allows investors to extract current income from
their investments without the need to redeem units from the fund. Dividends are paid directly into
investors’ CASA accounts, ensuring secure and hassle-free access to their income.
Current-Income Portfolio (T-Bill-91) is ideal for investors with a short to medium-term investment
horizon who seek quarterly cash inflows to cover a variety of spending
Launch Date:
June 1, 2005
Currency of Participation:
Philippine Peso
Minimum Investment:
PHP100,000.00
Return Objective:
To provide investors with quarterly income linked to the 91-day T-Bill rate, consistent with prudent investment management principles. The fund will invest primarily in investment-grade peso-denominated securities.
Risk Parameters:
1. Credit Risk - LOW
- Limited to government securities and investment-grade instruments
Modified Duration - is the percentage price change of a fixed income instrument
for a given change in the level of interest rates. Duration of 1 means that the
price of a fixed income instrument is expected to change by 1% for every 100
basis point (1%) shift in the level of interest rates. The higher the duration
of an instrument, the higher its risk (all other factors kept equal).
Interest rates have an inverse relationship with fixed income prices so that an
increase in interest rates generally leads to a decrease in fixed income prices
and vise versa.
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.
Liquidity:
To ensure adequate liquidity to meet daily fund withdrawals, at least 25% of investments will be in highly liquid instruments.
Initial NAV per unit:
PHP 100.00
Time Horizon:
Designed for investors with a short to medium-term investment horizon
- 90-day minimum holding period
- Early-redemption fee of 0.25% of the redeemed amount or P500, whichever is higher
Regulatory:
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.
Tax:
Subject to regular withholding tax of 20% on interest income
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 one (1) banking day after the date of transaction.
Valuation Method:
Mark-to-market value of the Fund revalued daily less fees and applicable taxes
Trust Fee:
2% p.a. on the gross market value of the fund, computed daily and deducted at least quarterly
Only cleared funds from an UnionBank savings account are acceptable for investment
Investments and withdrawals may be made at any UnionBank branch
Dividend Policy
Payout rate
To be set by UnionBank Trust & Investments Services Group at the start of each year*
Declaration date
First business day of each calendar month
Ex-dividend date
ONE (1) business day prior to the payment date. All investors with units outstanding as of the ex-dividend date qualify for dividends.
Dividend payment date
The last business day of each calendar month. Cash dividends will be automatically paid on this day, into the CASA accounts of investors.
Dividends per Unit
DIV.p.u. is declared at the start of each month:
DIVpu = NAVm-1 x 10% x no. of days in month / 360
Where:
NAVm-1 is the NAVpu on the last business day of the previous month
r = payout rate
* The payout rate may be adjusted for taxes and other expenses.
All Unit Investment Trust Funds (UITFs) are regulated by the Bangko Sentral ng Pilipinas.
UITFs are not deposit accounts and are not insured by the PDIC. UITFs 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.
