Dollar UITF Returns – 2010 3rd Quarter

As of the 3rd Quarter 2010, UITFs denominated in US Dollars are also performing well similar to Peso Unit Investment Trust Funds (UITF). If this good performance continues in the remaining 3 months, the returns of Dollar UITFs may be at par, or even better, than their performance in 2009.

What are UITFs?

Unit Investment Trust Funds (UITF) are “trust” products, meaning, the entity offering the fund (the trustee) administers the fund in behalf of individuals (trustors) whose resources have been combined into the fund. It is usually offered by a bank or a financial institution but, as a non-deposit product, is not guaranteed by the Philippine Deposit Insurance Corporation (PDIC).

The differences of UITFS with mutual funds are explained here: UITFs vs. Mutual Funds

The performance of Dollar UITFs in the Philippines, from January until September 2010, is summarized below.

YEAR-TO-DATE PERFORMANCE OF DOLLAR UITFs IN THE PHILIPPINES
As of the 3rd Quarter of 2010 (January to September 2010)

DOLLAR BOND FUNDS (primarily invested in fixed-income securities)

A. Long-Term Funds (duration of more than 5 years)

1. BPI Philippine Dollar Bond Index Fund – 17.25%
2. ING Philippine Dollar Bond Fund (UITF) – 16.69%
3. Bank of Commerce Dollar Trust Fund – 9.22%
4. Export & Industry Bank Expert Green Fund – 8.97%
5. Allied Bank Unit Performance Dollar Fund – 8.53%
6. Landbank Global Dollar Fund – 6.80%
7. RCBC Rizal Dollar Bond Fund – 5.57%
8. East-West Bank Infinity Dollar Long-Term Bond – 0.44%

B. Medium-Term Funds (duration of up to 5 years)

1. Unionbank (UBP) Philippine Dollar Bond Portfolio – 8.84%
2. BDO Medium Term Dollar Bond Fund – 8.29%
3. Metrobank Metrodollar Phil Bond Fund – 8.21%
4. BPI Global Phil Fund – 6.99%
5. Robinsons Bank Green Dollar Fixed Income Fund – 6.81%
6. Asia United Bank (AUB) Gold Dollar Fund – 6.06%
7. Chinabank Dollar Fund – 3.16%
8. PNB Dollar Profit – 2.67%

C. Intermediate-Term Funds (duration of up to 3 years)

1. Chinabank Savings Fixed Income US Dollar Fund – 7.69%
2. ING US Dollar Income Fund (UITF) – 5.65%
3. BDO Dollar Bond Fund – 4.77%
4. Metrobank Metrodollar Phil Liquid Fund – 4.63%
5. BPI International Fund Plus – 4.31%
6. East-West Bank Dollar Trust UITF – 0.65%
7. PNB Dollar Punla – 0.65%

MONEY MARKET FUNDS (primarily invested in short-term securities)

1. Metrobank Metro Dollar Money Market Fund – 2.23%
2. UCPB United US$ Money Market Fund – 1.54%
3. BDO Dollar Money Market Fund – 1.42%
4. Sterling Bank $ Money Market Fund – 0.98%
5. RCBC Rizal Dollar Money Market Fund – 0.86%
6. Security Bank Secure Dollar Fund – 0.58%
7. PBComm Winner Dollar Fund – 0.36%

* Source: Trust Officers Association of the Philippines (TOAP)

Disclaimer: Although the rate of return is a good measure of performance of an investment instrument, other things such as consistency of return and exposure to risks must also be assessed. Note that past performance of a fund is not and cannot be a guarantee of future returns.

Related Articles:

• All About Mutual Funds and Mutual Fund Investing
• UITFs vs. Mutual Funds
• 2008 Performance of Philippine Mutual Funds
• Discussion Forum: Mutual Funds and UITF

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