BPI’s short-term UITFs register 5.04-percent YTD gains

BPI Short Term UITF (unit investment trust fund) is designed for interim investors by providing higher returns over traditional bank deposit products with the almost near-cash behavior of the less volatile cash equivalent instruments.

The fund exhibited continuous steady rise in terms of net asset value per unit (NAVPU) since it is mainly invested in short-term fixed income deposits and securities with portfolio duration of less than a year.

As of Aug. 29, 2006, BPI Short Term UITF posted a net absolute year-to-date (YTD) return of 5.04 percent. For the past 360 days, it yielded an impressive net return of 7.46 percent.

BPI Short Term UITF is suitable for risk-averse investors aiming for moderate or negligible fluctuation in their investment portfolio. It is ideal also for investment over the short to medium term to finance projects such as minor house renovations, family vacation trips, and purchase of kitchen or entertainment package.

Because money market funds, like the BPI Short-term Fund, primarily attempt to reduce risk, their returns tend to be lesser than long-term average returns on higher risk investments such as bond funds.

Thus, for investments over long periods of time, BPI Asset Management recommends its bond funds, BPI Premium UITF and ABF Philippines Bond Index Fund.

By the end of August, the YTD net return of BPI Premium UITF and ABF Philippines Bond Index Fund is 5.85 percent and 6.44 percent, respectively.

The benefit of higher returns from bond funds is more noticeable over their long-term performance which is 9.36 percent and 13.55 percent, respectively, as of the same period for the past 360 days.

The benefits of money market funds vis-à-vis bond funds greatly differ since they serve different purposes. To determine which fund suits you best, BPI Asset Management and its accredited UITF marketers conduct a client suitability test with each prospective investor.

BPI Asset Management is the asset management unit of the Bank of the Philippine Islands (BPI), and the leading asset manager in the Philippines.