Investing PERSONAL FINANCE

Security Bank’s UITF First Impression

October 12, 2015
I was browsing my post statistics last night when I noticed that my PNB UITF First Impression post is performing pretty well. It consistently becomes part of my popular posts week by week. This gave me an idea that more readers nowadays are looking for reviews on products they can possibly invest with. 

So today I will be reviewing the UITF of a bank that had undergone some rebranding. I always see this bank’s branch at Makati Med so I research more and found some interesting facts and figures. Hope you’ll enjoy this post about Security Bank’s Unit Investment Fund.

Quick Review

Before I continue in giving information about Security Bank’s UITF, I first like to review some terms to you. Feel free to check the following links so you’ll have a little background.

Things You Need to Know About Security Bank’s UITF


How Security Bank UITF works?

Just as other Unit Investment Trust Fund, Security Bank’s UITF is an open-pooled trust fund. It is operated and administered by trust equity. Anyone can participate by purchasing units of participation in the fund. 

It is an easier and much safer alternative for individuals or corporation who don’t have time or knowledge to devote to actual stock trading. Professionals manage the fund through investing in financial instruments such as securities, bonds and equities.

Benefits of Security Bank’s UITF

As seen on their website:
  
  • Diversification. Investments (and risk) are spread across various asset baskets industrywide.
  • Liquidity. Investors can subscribe and redeem (subject to a minimum holding period) on any banking day. 
  • Affordability. Investors can start investing in UITFs with just 10,000pesos.
  • Professional Fund Management. Seasoned fund managers constantly monitor markets for opportunities.
  • Transparency. Investors can check the value of their investment daily with NAVPU.
  • Regulated Product. Management and regulation of UITFs are governed by the Banko Sentral ng Pilipinas.

Security Bank’s website is very user friendly. It provides a UITF Calculator where you can see how much the return of your investment can be depending on how much you invested, your subscription date, your redemption date and the type of investment. 

Security Bank offers different funds you can invest with and applicable no matter what type of investor you are.

*Click on the link that will redirect to the PDF Fund Fact Sheet you can easily download for reference.


     Minimum Investment: 10,000pesos
     Minimum Additional Investment: 5,000pesos
     Net Asset Value Per Unit (NAVPS) : 2.141094

     Investment Objective: SB Peso Equity Fund aims to achieve long term growth by diversifying mainly into select equity investments listed in the Philippine stock exchange, and other marketable instruments. 

     Suitable for Investors Who:
  • Have an aggressive risk tolerance.
  • Seek potentially higher returns through investments on Philippine Stock Market and who can tolerate high price volatilities.
  • Have the possibility to be exposed to capital losses given the volatility of the local equities markets
  • Have an investment horizon of at least three (3) years.
     Risks:

    You should not invest in this fund if you do not understand or are not comfortable with the accompanying risks. 

    Market | Price Risk – The possibility for an investor to experience losses due to changes in market prices of equities or bonds. 

    Liquidity Risk – The possibility for an investor to experience losses due to inability to sell or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss 


     Minimum Investment: 10,000pesos
     Minimum Additional Investment: 5,000pesos
     Net Asset Value Per Unit (NAVPU): 1.085778

     Investment Objective: SB High Dividend Peso Equity Fund aims to achieve total returns through income growth and long-term capital appreciation by investing in listed equity securities by Philippine companies that offer high dividend payouts.

     Suitable for Investors Who:

  • Have an aggressive risk tolerance.
  • Seek potentially higher returns through investments on Philippine Stock Market and who can tolerate high price volatilities.
  • Have the possibility to be exposed to capital losses given the volatility of the local equities markets
  • Have an investment horizon of at least three (3) years.
    Risks:

   You should not invest in this fund if you do not understand or are not comfortable with the accompanying risks. 

    Market | Price Risk – The possibility for an investor to experience losses due to changes in market prices of equities or bonds. 

    Liquidity Risk – The possibility for an investor to experience losses due to inability to sell or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss. 


     Minimum Investment: 10,000pesos
     Minimum Additional Investment: 5,000pesos
     Net Asset Value Per Unit (NAVPU): 2.054437

     Investment Objective: SB Peso Asset Variety Fund aims to achieve long term growth by diversifying mainly into selected equity investments listed in the Philippine stock exchange and other marketable instruments like government and corporate bonds. The fund will be characterized by a balance of fixed income and equity investments  in the portfolio.

     Suitable for Investors who:

  • Have an aggressive risk tolerance.
  • Seek potentially higher returns through investments on Philippine Stock Market and who can tolerate high price volatilities.
  • Have the possibility to be exposed to capital losses given the volatility of the local equities and fixed income markets
  • Have an investment horizon of at least three (3) years.
     Risks:

    You should not invest in this fund if you do not understand or are not comfortable with the accompanying risks. 

      Market | Price Risk – The possibility for an investor to experience losses due to changes in market prices of equities or bonds. 

      Liquidity Risk – The possibility for an investor to experience losses due to inability to sell or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss. 

       Credit Risk – The possibility for an investor to experience losses due to a borrower’s failure to pay principal and/or interest in a timely manner. 

       Reinvestment Risk – The possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested. 

      Interest Rate Risk – The possibility for an investor to experience losses due to changes in interest rates. 


     Minimum Investment: 10,000pesos     
     Minimum Additional Investment: 5,000pesos 
     Net Asset Value Per Unit (NAVPU) : 1.675070

     Investment Objective: SB Peso Bond Fund aims to achieve long term growth by diversifying mainly in medium to long term fixed income securities such as government securities, select corporate bonds and/or notes and other marketable instruments.

       Suitable for Investors who:
  • Have a moderate risk tolerance.
  • Are aware of potentially higher returns in fixed income securities apart from deposits and deposits substitutes and who can tolerate high price volatilities.
  • Have the possibility to be exposed to capital losses given the volatility of the bond markets
  • Have an investment horizon of at least one (1) year.
       Risks:

       You should not invest in this fund if you do not understand or are not comfortable with the accompanying risks. 

       Market | Price Risk – The possibility for an investor to experience losses due to changes in market prices of equities or bonds. 

       Liquidity Risk – The possibility for an investor to experience losses due to inability to sell or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss. 

       Credit Risk – The possibility for an investor to experience losses due to a borrower’s failure to pay principal and/or interest in a timely manner. 

       Reinvestment Risk – The possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested. 

      Interest Rate Risk – The possibility for an investor to experience losses due to changes in interest rates. 


     Minimum Investment: $1,000
     Minimum Additional Investment: $100
     Net Asset Value Per Unit (NAVPU): 1.259668

     Investment Objective: SB Dollar Fund aims to achieve competitive returns through prudent and active management of the portfolio, comprised mainly of US dollar-denominated fixed income and related securities/investments.

     Suitable for Investors who:

  • Have a moderate risk  tolerance
  • Are aware of potentially higher returns in US Dollar denominated fixed income securities apart from regular Dollar bank time deposits.
  • Have an investment horizon of at least one (1) year. Have the possibility of capital losses given the volatile nature of the global bond market.
     Risks:

    You should not invest in this fund if you do not understand or are not comfortable with the accompanying risks.
       Market | Price Risk – The possibility for an investor to experience losses due to changes in market prices of equities or bonds. 

       Liquidity Risk – The possibility for an investor to experience losses due to inability to sell or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss. 

        Credit Risk – The possibility for an investor to experience losses due to a borrower’s failure to pay principal and/or interest in a timely manner. 

        Reinvestment Risk – The possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested. Interest 

         Rate Risk – The possibility for an investor to experience losses due to changes in interest rates. 


     Minimum Investment: 10,000pesos
     Minimum Additional Investment: 5,000pesos
     Net Asset Value Per Unit (NAVPU) : 1.045268

     Investment Objective:  SB Intermediate Term Peso Bond Fund aims to achieve income growth for participating institutions and individual clients through investments in a diversified portfolio of Philippine Peso denominated fixed income securities, such as government securities, select corporate bonds and/or notes and other marketable instruments. 

      Suitable for Investors who:

  • Have a moderate risk tolerance. 
  • Are seeking short-term investments that offer potentially higher yields than the Money Market Fund. 
  • Have an investment horizon of at least one (1) year. 
  • Have the possibility to be exposed to capital losses given the volatility nature of the bond markets. 
       Risks:

      You should not invest in this fund if you do not understand or are not comfortable with the accompanying risks. 

       Market | Price Risk – The possibility for an investor to experience losses due to changes in market prices of equities or bonds. 

        Liquidity Risk – The possibility for an investor to experience losses due to inability to sell or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss. 

         Credit Risk – The possibility for an investor to experience losses due to a borrower’s failure to pay principal and/or interest in a timely manner. 

         Reinvestment Risk – The possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested. 

        Interest Rate Risk – The possibility for an investor to experience losses due to changes in interest rates 


     Minimum Investment: 10,000pesos
     Minimum Additional Investment: 5,000pesos
     Net Asset Value Per Unit (NAVPU) : 1.253688

     Investment Objective: SB Peso Money Market Fund  aims to achieve short term growth by investing mainly in deposits with banks and with the Bangko Sentral ng Pilipinas (BSP). 

        Suitable for Investors who:

  • Have a conservative risk tolerance. 
  • Seek principal protection. 
  • Have an investment horizon of three (3) to six (6) months 
        Risks:

       Market | Price Risk – The possibility for an investor to experience losses due to changes in market prices of equities or bonds. 

        Liquidity Risk – The possibility for an investor to experience losses due to inability to sell or convert assets into cash immediately or in instances where conversion to cash is possible but at a loss. 

         Credit Risk – The possibility for an investor to experience losses due to a borrower’s failure to pay principal and/or interest in a timely manner. 

         Reinvestment Risk – The possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested. 

       Interest Rate Risk – The possibility for an investor to experience losses due to changes in interest rates. 

How to Open a Security Bank UITF Account?

Unlike the PNB UITF that you can easily open in a 3-Step process, Security Bank’s UITF can be open in a traditional way. 

First, download and fill out the enrollment form. You need to visit their website and fill out your information first before you can download the enrollment form. This for me is a con since you need to provide your basic information first. 

Next is to print the filled out enrollment form and bring to the Security Bank branch near you.

Lastly, you can manage your funds online. This is ideal for those who are busy professionals and want to see how much their investments is performing anytime, anywhere.

Quick Link Below:


My First Impression

Security Bank is also a new name for me. Again, my awareness on banks usually revolves with BPI, BDO and Metrobank. When I saw their commercial on TV with Meagan Young and the billboards all over Metro Manila, I knew it is a bank I have to look forward to. I love that Security Bank offers a user-friendly and crisp website for its customers. It is filled with valuable information that can help anyone plus the Return of Investment Calculator is such as cool idea to help investors know how much they can get out of the investment they will be making.

Other Pros:

1. Detailed Fund Choices

Security Bank gave away information for each Fund Choices. I love that they inform to whom it is suitable and the risks that is involved once you start investing. Out of the 8 fund choices I have to say that SB Peso Bond Fund and SB Peso Money Market Fund are my top two choices. 

2. Security Bank is multi-awarded bank

Since I lack info about Security Bank I was surprised to learn how many awards this company gained for the past couple of years. It became ASQ Global Awards Bank of the Year for 2nd consecutive years. You can also see the improvement from the rebranding that Security Bank did.

3. Easy to Open

The problem with BPI, BDO and Metrobank is the fact that you can be easily discouraged with the long lines. Whereas, Security Bank doesn’t really receive that much guests on a daily basis (based on my reading from other blogs) so you can talk to a bank teller to know more about the bank product and assess if you will give it a go. 

The Cons

1. High Minimum Additional Investment

5,000 a month?! Aw… that’s too high for me at the moment. My FAMI account is just 1,000pesos a month so learning that the additional investment makes me sad.

2. Low-NAVPU

With all fairness to Security Bank’s UITF, their NAVPU is much higher compared to PNB UITF. However, it is still too low if considering the NAVPS that I am used to with FAMI. This will do if you are after diversification but if you are opening a UITF as your primary investment account, I doubt it could make you a millionaire in five years.

3. Security Bank UITF is currently performing low

On my research to make this blog post I learned that Security Bank’s UITF is performing all-time low. From being one of the top performing last year next to BPI Philippine High Dividend Equity Fund and BPI Equity Value Fund, Security Bank’s UITF are down to the 28th and 29th spot. (SB High Dividend Peso Equity Fund and SB Peso Equity Fund).

I am hoping that Security Bank’s fund manager’s stock picks will be better in the coming year. I have read in a Female Network forum how well Security Bank’s UITF performed last year but as of 2015 people are losing their money. Maybe its because of how the economy today is performing. 


Overall

It is always nice to know other investment options and if ever Security Bank’s performance becomes consistent I might consider putting an initial investment. The additional 5,000 investment is high for me so (remember I have my other investments too) I think a good quarterly top up will do. I am in no way affiliated with Security Bank and in any bank or financial product that I create a first impression with unless stated.


What you think about Security Bank’s UITF? Have you invested with this one? How is/was your experience?

I hope you liked this post. Don’t forget to do any of the following:


Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at izza@savingspinay.ph