The unit investment trust funds (UITFs) organized only recently by Metropolitan Bank & Trust Co. (Metrobank) now manage assets worth close to P1 billion already.
Metrobank Executive Vice President and Trust Banking Group Officer Josefina Tuplano said the two new UITFs, namely the Metro Philippine Stock Exchange index (PSEi) Tracker Fund and Metro High Dividend Yield Fund, were launched only on October 10.
Since then, and while very new, the UITFs now have assets under management (AUM) worth close to P1 billion of which the High Dividend Yield Fund accounted for 70 percent.
Tuplano said the aggregate AUM for all trust banking total P340 billion to date.
UITFs are investments pooled together from Metrobank clients and invested collectively by professional fund managers.
The Metro PSEi Tracker Fund, on the other hand, is invested in stocks that mimic the PSE index stock composition.
The Metro High Dividend Yield Fund is invested in stocks that provide above average returns from the distribution of dividends.
Tuplano said the minimum initial investment to participate in any of the UITFs is P25,000. Additional participation require P25,000 per increment. The maintaining balance is P25,000. The investment horizon is five years.
UITFs provide access to high-grade investments without the need to put up a high principal.
The basket of investments within each UITF gives opportunity to maximize the returns without necessarily taking on too much risk.
The UITF is ideal for those who want smart investing but don’t have time or expertise to do so.
It has better earnings potential, offer diversification, affordability, liquidity and convenience.
Metrobank sees a resurgence of UITFs because the special deposit account of the Bangko Sentral ng Pilipinas which used to be a favored investment outlet has restricted access.