UnionBank Peso Short Term Fixed Income Portfolio
UnionBank Peso Short Term Fixed Income Portfolio is a peso-denominated unit investment trust fund designed to provide investors a higher-yielding, liquid outlet for their short-term, transactional funds. UnionBank Peso Short Term Fixed Income 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 entities2. Market Risk - LOW
- Modified Duration Limit: 1
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).
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 5% 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|
|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. 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.