MANILA, Philippines — Gokongwei-led Robinsons Bank Corp. has provided Filipinos with another avenue to save and grow their hard-earned funds with the launch of a unit investment trust funds (UITF).
The bank, which is in the process of merging with Ayala-led Bank of the Philippine Islands (BPI), has launched the Robinsons Bank’s Dollar Short Term Feeder Fund.
For as low as $500, the innovative product is designed to offer Filipinos the best of both worlds, with the security of a traditional savings account and the potential for higher returns through expertly managed investment portfolios.
Similar to other UITF products, the Dollar Short Term Feeder Fund offers investors the opportunity to diversify their investment portfolio by investing in a range of fixed-income securities.
The investment is divided into 90 percent being invested in Sun Life Prosperity Dollar Starter Fund Inc. while the remaining 10 percent is invested in liquid assets with portfolio duration of not more than one year.
According to Robinsons Bank, this helps reduce the risk of investing in just one or two individual securities.
Robinsons Bank’s Trust professionals in partnership with Sun Life Asset Management Company Inc. (SLAMCI) manage the fund as the UITF’s Target Fund is SLAMCI’s Prosperity Dollar Starter Fund.
The UITF’s fund managers have the expertise and experience needed to make informed investment decisions.
This means customers benefit from the expertise of the fund managers without having to actively manage and monitor their investments.
The Dollar Short Term Feeder Fund provides an accessible, low-risk option for anyone looking to grow their wealth and reach their financial goals.
While investing in the stock market is a great way to build wealth over the long term, it can also be a roller coaster ride in the short term.
Many investors are seeking investment options that offer a balance of stability and growth potential such as UITFs
The respective boards of directors of BPI, JG Summit Capital Services Corp., and Robinsons Retail approved the merger of BPI and Robinsons Bank Corp. in September last year, with BPI as the surviving entity.
The merger will result in Robinsons Bank shareholders collectively holding six percent of the resulting outstanding capital stock of BPI.
JG Summit, which owns a controlling 60-percent stake in Robinsons Bank, will end up with a 3.6 percent stake in BPI, while Robinsons Retail would get a 2.4 percent interest for its 40 percent stake in Robinsons Bank.
However, the Gokongwei Group is seen ending up with a higher 10.4-percent stake in BPI amid the ongoing merger of the banking arms of the two largest conglomerates in the country.
Gokongwei’s Robinsons Retail Holdings Inc. has acquired a 4.4-percent effective equity interest of Arran Investment Pte. Ltd. in BPI. The affiliate of Singapore’s GIC Private Ltd. owns a 21.9 percent interest in Liontide Holdings Inc. that has a 20 percent stake in BPI.