BDO UITFs consistently give competitive returns
THE trust and investments group of Banco De Oro Unibank, Inc. (BDO) has rewarded its clients last year with competitive returns on investments (ROI) from its various unit investment trust funds (UITF).
Figures showed that the ROIs of the Bank’s UITFs, namely, the Peso Money Market Fund, Peso Bond Fund, Government Securities (GS) Fund, Peso Fixed Income Fund, Peso Balanced Fund, Equity Fund, Dollar Money Market Fund, Dollar Bond Fund and Medium-Term Dollar Bond Fund, have performed better versus their respective benchmarks.
For instance, BDO’s Equity Fund for 2010 outpaced the benchmark PSE index (PSEi) by 12.97 percent with the former earning 50.59 percent compared to the latter’s 37.62 percent.
The same trend was likewise displayed by the Peso Balanced Fund, which posted a ROI of 39.81 percent in 2010 compared with the 19.02 percent performance of its benchmark – the average PSEi and the Bloomberg average 30-day special savings rate.
Ador Abrogena, executive vice president for BDO’s trust and investment group, said the Bank’s UITFs did not only perform well vis-à-vis their respective benchmarks in 2010 but also in the last five years, which included a global downturn in asset prices.
“Fund returns are normally compared to a benchmark which is a standard that has the same risk return characteristics as the fund being rated. The standard normally used is an index that represents the market for the securities that the fund invests in,” Abrogena said.
He added the returns from UITFs were commensurate with the risks taken by each UITF – high returns entail high risks and low risks produce low returns.
UITFs are open-ended pooled trust funds operated and administered by a trust entity and made available by participation. Funds from various investors with similar investment objectives are pooled together into one fund, which the trust entity invests in different types of securities with the aim of maximizing returns within the level of risk allowed for that particular fund.
Trust and investments is just one of the industry-leading products and services being provided by BDO to the retail and corporate clients. The Bank is also into lending, deposit-taking, foreign exchange, brokering, credit cards, corporate cash management and remittance. It also has subsidiaries that offer leasing and financing, investment banking, private banking, bancassurance, insurance brokerage and stock brokerage services.
TABLES:
2010 ROI of BDO UITFs vs BENCHMARK
| BDO UITF | BDO UITF Performance (net) | Benchmark (net) | Benchmark Performance (net) | BDO Outperformance |
| Peso Money Market Fund | 3.55% |
Bloomberg Ave 30-D SSA |
2.19% | 1.36% |
| Peso Bond Fund | 9.10% | HSBC 1-3 Yr Bond Index | 5.47% | 3.63% |
| GS Fund | 10.71% | HSBC 1-5 Yr Bond Index | 6.48% | 4.23% |
| Peso Fixed Income Fund | 11.10% | HSBC 1-5 Yr Bond Index | 6.48% | 4.62% |
| Peso Balanced Fund | 39.81% | Ave of the PSEi and the Bloomberg Ave 30-D SSA | 19.02% | 20.79% |
| Equity Fund | 50.59% | PSEi | 37.62% | 12.97% |
| Dollar Money Market Fund | 1.86% | US$TD Rate fm Bloomberg | 0.37% | 1.49% |
| Dollar Bond Fund | 4.30% | 1-3Yr ROP Index | 3.10% | 1.20% |
| Medium-Term Dollar Bond Fund | 7.02% | 3-5Yr ROP Index | 4.61% | 2.41% |
*Philippine Stock Exchange Index
FIVE YEAR (2006-2010) ROI of BDO UITFs vs BENCHMARKS
| BDO UITF | BDO UITF Performance (net) | Benchmark (net) | Benchmark Performance (net) | BDO Outperformance |
| Peso Money Market Fund | 23.33% |
Bloomberg Ave 30-D SSA |
15.78% | 7.55% |
| Peso Bond Fund | 35.04% | HSBC 1-3 Yr Bond Index | 30.35% | 4.69% |
| GS Fund | 38.88% | HSBC 1-5 Yr Bond Index | 34.56% | 4.32% |
| Peso Fixed Income Fund | 39.78% | HSBC 1-5 Yr Bond Index | 34.56% | 5.22% |
| Peso Balanced Fund | 79.33% | Ave of the PSEi and the Bloomberg Ave 30-D SSA | 58.02% | 21.31% |
| Equity Fund | 124.22% | PSEi | 100.43% | 23.79% |
| Dollar Money Market Fund | 19.28% | US$TD Rate fm Bloomberg | 3.78% | 15.50% |
| Dollar Bond Fund | 29.82% | 1-3Yr ROP Index | 24.39% | 5.43% |
| Medium-Term Dollar Bond Fund | 38.82% | 3-5Yr ROP Index | 27.78% | 11.04 |