To encourage more Filipinos to invest and start earning money, the Trust and Asset Management Group (TAMG) of Security Bank launched three new Unit Investment Trust Funds (UITFs) that would allow them to earn from a diversified portfolio of securities with a low initial investment requirement.
“We’re excited to offer these new funds to our clients who would like to expand their investment horizon with new diverse ways to grow their hard-earned money,” beamed Noel Reyes, Chief Investment Officer of Security Bank TAMG.
This means that Filipinos with moderately conservative and aggressive risk profiles can now access new financial growth opportunities with an investment time horizon from six months to at least three years.
“We hope that these new UITFS could encourage more Filipinos to access the financial markets not only locally but also the U.S. markets and invest,” he added.
In a press release, Security Bank said the new funds will become available starting September 6, 2022.
Making UITF investments more affordable
To cater to the moderately conservative investor, the bank is also launching its SB Peso Cash Management Fund.
“After hearing our retail clients’ clamor to make investing in the UITF more affordable, we have lowered the minimum investment from P10,000 to just P5,000 for our other Peso UITFs,” said Dino Aquino, Fund Manager of Security Bank’s TAMG.
He explained that by investing in this fund, clients, at just P5,000, can already access high-yielding bank deposits and short-term government securities from the BSP with much less volatility. This is because the duration is shorter compared to the usual money market funds being offered in the market.
For the more aggressive investor, Security Bank is also launching its new thematic funds called the “SB US Technology Equity Index Feeder Fund” and the “SB ESG Aware Equity Index Feeder Fund.”
The required initial investment for both feeder funds is $1,000.00, while the minimum top-up is $500.00.
To maximize the returns typical of investing in equity funds, Security Bank advises clients to stay invested in these feeder funds for at least three years.
For the “SB US Technology Equity Index Feeder Fund,” prospective clients can gain access to the feeder fund’s Target Fund, the Invesco NASDAQ-100 ETF, which comprises the largest 100 innovative companies that are now driving growth in the U.S. These include companies such as Apple, Microsoft, Amazon, Tesla, and Google (through the Alphabet company).
According to Basil Go, TAMG Fund Manager, “The NASDAQ-100 Index is comprised of companies known for global growth and innovation. In the last 20 years, the NASDAQ-100 Index has been appreciating 10-folds as compared to the 4-fold return for the S&P 500.”
Sustainable investments that promote ESG
Apart from the tech-centric feeder fund, Security Bank will also be launching the “SB ESG Aware Equity Index Feeder Fund” to give Filipino investors access to large and mid-cap ESG-focused US companies.
Through its Target Fund, the iShares ESG Aware MCSI USA ETF, Filipinos will be able to integrate ESG into their portfolio while also achieving potential larger returns from the US equity market.
“The ESG fund employs an optimization process to maximize exposure to ESG factors while maintaining a target tracking error to the parent MSCI USA index within a specified range, targeting companies with high ESG ratings in different sectors,” explained Go.
To date, Security Bank’s TAMG now has a total of 10 fund offerings that cover the whole range of funds, from money-market funds, Peso and Dollar equity funds (including PSEi index tracker fund), as well as feeder funds that cover the US as well as Global and Asia ex-Japan markets.