Peso Money Market Portfolio is a peso-denominated unit investment trust fund designed to provide
investors a higher-yielding, liquid outlet for their short-term, transactional funds. Peso Money
Market Portfolio is ideal for investors with a short-term investment horizon looking for enhanced
yields and the flexibility to immediately access their funds.
Launch Date:
February 8, 2006
Currency of Participation:
Philippine Peso
Minimum Investment:
No Minimum Investment
Return Objective:
Capital preservation with enhanced yields by investing in a diversified portfolio of short-term, highly liquid fixed-income securities, term deposits and other money market instruments
Risk Parameters:
1. Credit Risk - LOW
- Limited to Philippine government and investment grade entities
2. Market Risk - LOW
- Value-at-Risk Limit: 1.00% in 1 day
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.
Liquidity:
To ensure adequate liquidity to meet daily fund withdrawals, at least 50% of investment 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
- No Minimum Holding Period
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 are subject to 12NN cut-off for deposit and withdrawal transactions. Funds withdrawn are paid directly into client’s linked CASA account one (1) business day after transaction date.
Valuation Method:
Mark-to-market value of the Fund revalued daily less fees and applicable taxes
Trust Fee:
Management fee of 1% p.a. of the 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
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.
