UnionBank Philippine Equity Index Fund Portfolio
The Philippine Equity Index Fund is a peso-denominated UITF which invests and mirrors the Philippine Stocks Exchange Index (PSEi), the benchmark for funds which invest on equities.Investment outlets for this fund include the 30 different equities from the PSEi, which represent major industries in the Philippine economy. The portfolio aims to buy all the stocks in the same weight as the index to provide the return and mirror the performance of the PSEi. The UnionBankPhilippine Equity Index Fund is ideal for investors seeking returns that mimic the index, with a mid to long-term investment horizon.
|Launch Date:||May 22, 2014|
|Currency of Participation:||Philippine Peso|
|Return Objective:||The Fund invests and mirrors the performance of the PSEi. It seeks to buy all the stocks in the same weights as the index. The fund aims to provide return that tracks the performance of the PSEi.|
Market Risk - HIGH
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.
|Liquidity:||At least 2% of investments will be in highly liquid instruments.|
|Initial NAV per Unit:||PHP 100.00|
Designed for investors with a long-term investment horizon
|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.|
|Valuation Method:||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 2:30 PM. Withdrawals will be funded four (4) banking days after the date of transaction.|
|Withdrawal Procedure:||Withdrawals will be funded four (4) banking days from the date of transaction.|
|Trust Fee:||1% p.a. based on the total market value of the fund.|