Bank Equities

[Mr.Punch]

^So that's it?  It simply means to invest more money in the fund?

I thought it meant something more (i.e. probably something about proportions) in relation to the original investment, by the way it's being used here.  I was so sure I'm missing something, haha.  Anyway, thanks.  That lears it up.

[xtine]

^Actually, its a generic term which means "an extra amount of something, especially money, that is added to an existing amount to create the total you need". 

In Manila, we call this "reload" e.g. prepaid reload.  But in most countries such as Singapore and Australia it is referred as "Top up". 

E.g. EZ-link top up, prepaid card top up.

[Mr.Punch]

For those who have been following the market the past few years, could you discern a significant difference between actively managed funds vis-a-vis index funds?  I tried to look at the graphs in www.uitf.com.ph to compare, pero nahilo lang ako, haha

(By the way, using the same website, it seems that there are only 3 index UITFs in existence, and 2 of them are with BPI pa.)

[mxherr5]

I believe you are correct. 2 BPI Index Funds and 1 PNB Index-like Fund.

Well, the PNB index fund sucks as an index fund, its not able to mirror
the index accurately at all.
BPI's Index fund's tracking error on the otherhand is very small.

With that said, you can also check out Philequity's Index Fund..
it tracking error isn't good but its actually doing better than the index
its trying to mirror last time I checked.

Before around 2 years ago(I think), most actively managed funds
have better returns than index funds pero currently, some are lagging
the index and some are performing better than the index.

Note that that's one of the rationale for index funds btw
The index is the aggregate of all funds
Why take the chance you pick a looser.. just go with an
index and you'll be assured of a sakto lang performance :p

(I don't believe that rationale btw)

[ikaela]

I'm with mxherr5's view on Philippine index funds, emphasis on Philippines. Since the Philippine market is so small, managers have all this inside info that makes it comparatively easy to beat the index. Why not take advantage of that? Also, for supposedly passively managed funds, index funds have exorbitant fees. You might as well go for an Exchange Traded Fund. Same concept -- it's a diversified basket of index stocks that is designed to just go with the flow. It'll follow the index for you, but without the unnecessary fees. The fact that you can buy and sell it any time during trading hours is also a huge advantage and come-on.

[Mr.Punch]

^ Looks like ETF is an entirely new thing over here.

http://business.inquirer.net/154839/phs-first-exchange-traded-fund-debuts-on-pse

So parang Inception pala ito.... stocks within a fund traded like stocks.  =D

[Mr.Punch]

I've been looking at comparative charts on UITF performances and it seems to me that AB Capital funds are performing exceedingly well (and consistently at that).

Their initial investment requirement of P25,000 and minimum additional of P10,000 are not too high, and their trust fees are pretty low at 1.25%.

HOWEVER, I don't see them being discussed a lot in UITF forums.  Is there a catch?  They're like the proverbial elephant in the room that everyone sees but no one talks about.  What am I missing?

[ikaela]

^I believe it's because they're difficult to contact and communicate with. I wanted to place with them before, but they took forever to get back to me. In that time, I had already invested with someone else. I also took their poor response time as a sign of what doing business with them in the future would be like.

Another thing, they also prefer to meet with clients face-to-face. I imagine people discussing investments on the internet are like me -- we are OFWs, on-the-road travelers, non-Manila residents, or just plain busy people who prefer to do things online, through courier, and other conveniences. So the in-person requirement already severely limits AB Capital's potential clientele. Netizens will also naturally buzz more about funds that are more visible on the internet, engage in social media, have their own website, and etc.

But I agree, AB Capital's Equity UITF is one of the best, if not the best. If it's not a hassle for you to make the trip to their office to open an account, and go there each and every time you make an additional investment/redemption, then you are in lucky and very enviable position.

[Mr.Punch]

^Thanks.  I had an idea that it had something to do with a reputation of some sort.  I was afraid that they might be linked with someone infamous (i.e. Napoles, etc.)  haha.  So it's just plain inefficiency pala.

[mxherr5]

This fund caught my eye a long time ago.. and it was because
it was performing as well as Unionbank's Equity fund.

But the 25k minimum back then was still too steep for me hehe

So I settled with another fund that was 3rd in the ranking but
with an affordable minimum.

I can now afford the 25k but ikaela is right, I still wouldn't
invest with them due to the inconvenience.

[Mr.Punch]

Is there someplace online where one can see how much a fund's NAVPU fluctuates during the day?

I know funds are not as volatile as stocks, but I came across someone in another forum saying so-and-so fund's NAVPU has a tendency to spike within a day.  I wonder where he saw that.  Can online trading accounts also track NAVPUs of UITFs on a realtime basis?

[mxherr5]

You must have misunderstood sir or the poster who wrote
that post didn't know what he was talking about.

UITFs only has one NAVPU... at the end of the trading day.

Maybe he was referring to ETFs? There's only one ETF
right now. Its a PSEi index ETF

[Mr.Punch]

^Yep, that's what I thought too.  But since I'm a newbie, I got curious.  Thanks.

[mameejhy]

Hi. Re BPI UITFs - Sino sa inyo ang meron nito? Ok ba ang returns? BDO looks better  although I can't open an account with BDO uitf unless I'm in the Philippines.

[mxherr5]

It ranges from not ok to just average.
Malayo ang performance ni BDO.
Super satisfied with BDO.

[Mr.Punch]

I have amounts in BPI (equity and balanced), BDO (equity), and Security Bank (equity).

Well, surprise-surprise, Security Bank is the best-performing so far.  Surprising because almost no one talks about it in all the forums I've been to.  (And I only took a gamble with it because my gf works there, haha)   

Still too early though and anything can still happen, but I suppose it's hard not to smile at a 9.4% paper gain after just 2 months.  (Really close to AB Capital's 9.8% YTD.)

[mxherr5]

You are correct in not placing a lot of faith in
short term returns. A lot can happen in 12 months.

BDO is ahead in the 3 year return ranking.

I also have an investment on a not often talked
about fund which is UCPB.

It sometimes even tops Unionbank, usually the #1
fund during some years.

But lately its been lagging behind. I consider this
one of my primary funds though along with BDO when
it comes to equity.

[Mr.Punch]

^ Yup, I've inquired with UCPB too and I planned to place some money with them.  Unfortunately, laging may pinag-gagamitan eh.

Kwento lang:

I was sorting through my parents' financial documents because they wanted me to look into something, and in the course of my rummaging, I found that they placed huuuuuge amounts in balanced funds with Unionbank, BPI and Security Bank.

Here's the thing, the dates of subscription ranged from April to May ...... 2013   

*mega-facepalm*  Kung minalas nga naman talaga.....

(Those who have been tracking the market will surely understand.      )

[chefron]

Hi. Re BPI UITFs - Sino sa inyo ang meron nito? Ok ba ang returns? BDO looks better  although I can't open an account with BDO uitf unless I'm in the Philippines.

ako kakabukas ko pa lang din.

It ranges from not ok to just average.
Malayo ang performance ni BDO.
Super satisfied with BDO.

i want to open sa BDO din.


question:  hindi po ba redudndant if may UITF kana tas mag MF kapa?

[Mr.Punch]

^Well, yeah.  they're basically the same thing.

But what I've observed is that MFs generally have longer hold periods and have more fees.  Longer hold periods is kind of a 2-edged sword.  On one hand,
UITFs are a bit more liquid so you can redeem sooner without penalties if you need the money.  On the other hand, the longer hold periods of MFs add more stability to the fund.  (Because it's never a good thing for lots of investors to redeem all the time for an investment that's basically designed to stay and grow.)

Probably mxherr can explain better the link between fund stability and better returns.  :)5