PSBank breaks into UITF trade
Philippine Savings Bank, part of the Metrobank group, is breaking into the unit investment trust fund (UITF) trade, citing consumers’ rising in demand for better returns in a record-low interest rate regime.
UITF is a professionally managed collective investment product similar to a mutual fund where units, not shares, are issued.
In a statement, the bank announced the rollout of its first UITF, the PSBank Money Market Fund—an affordable option requiring a minimum investment of P10,000.
“The PSBank Money Market Fund is ideal for first-time investors and retirees looking for alternative ways to grow their nest egg. These are low-risk investments which provide higher returns than time deposit or regular savings accounts,” PSBank president Vicente Cuna Jr. said in a statement.
For PSBank, the UITF product will complete its portfolio of financial products—from savings, deposits and loans, to investments suitable for all Filipinos.
“With this new investment product, we evolve our clients’ banking experience as we encourage them to become investors, in addition to being depositors,” Cuna said.
A UITF is not a bank deposit product. Returns are not guaranteed by the bank and, unlike deposits, it is not insured by the Philippine Deposit Insurance Corp. The assets of the UITF are valued based on the prevailing market price, which means there’s a risk of incurring losses in the UITF if the client pulls out in an environment marked by declining market prices.
The pooled funds will be managed by PSBank’s investment team, which will choose from among different low-risk financial instruments to optimize returns, the bank said. Doris C. Dumlao
