May 19, 2024

Best UITF Of The Philippines In 2020 – Peso Lab

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Another year has ended. So how did unit investment trust funds or UITF perform?

Indeed, the year 2020 is full of challenges. No doubt about that. Of course, as news from China of a mysterious illness that causes respiratory disease spread, the world had not prepared for what was to come. Then the pandemic ripped through nations, forcing governments to shut down economies. And with that came financial hardship. As a matter of fact, investors swiftly responded by going to securities of less risks.

UITF: The year 2020 in review

Out of 252 funds that posted returns, 96 of them or about 1 in 3 were in the red or remained unchanged.

And yet that’s not the whole story. As people learn to live with the new normal of physical distancing, face mask, face shield, frequent handwashing, and restricted travel, stocks of companies that found themselves benefiting from people who are working at home and searching for ways to acquire their needs online soared.

In fact, the bottom line of 156 funds or about 6 in 10 are green. Moreover, 32 of them which represent 12.70% of all the funds had double-digit growth.

Total number of funds with returns 252
Loss 70
Gains 156
Double-digit gains 32

Thus, for the figures and tables that follow, the data are sourced from UITF.PH. Returns posted are from December 27, 2019 to December 28, 2020. But the exceptions are nearly all of ATRAM funds whose NAVPU is updated as of December 23. Hence, they are indicated with an asterisk on their name.

Something have changed on how the ranking is done. Unlike last year’s article “Philippines’ best UITF in 2019“, all funds are included this time around. So that means you’ll see on the tables every fund in different currencies, invested in securities in other countries, and tracking foreign indices, including Asian indexes.

10 best performing UITF in the Philippines 2020

The UITFs that dominated the top 10 list are all equities funds and they posted gains in excess of 24%. In fact, all of them are invested in securities abroad. And nine out of the 10 are feeder funds.

The best performing UITF is ATRAM Global Consumer Trends Feeder Fund followed by ATRAM US Equity Opportunity Feeder Fund, BDO CHINA EQUITY FEEDER FUND, and Manulife Dragon Growth Equity Feeder Fund.

FUND NAME CURRENCY TYPE 1 YEAR RETURN %
ATRAM Global Consumer Trends Feeder Fund Peso Equity 72.18%
ATRAM US Equity Opportunity Feeder Fund Dollar Equity 41.63%
BDO CHINA EQUITY FEEDER FUND Dollar Equity 38.32%
Manulife Dragon Growth Equity Feeder Fund (USD Class A) Dollar Equity 34.30%
PRUInvest USD Global Technology Equity Feeder Fund (Class I) Dollar Equity 33.75%
ATRAM Global Technology Feeder Fund Peso Equity 33.62%
PRUInvest USD Global Technology Equity Feeder Fund (Class A) Dollar Equity 32.79%
BDO EUROPE EQUITY FEEDER FUND Dollar Equity 32.33%
Manulife Dragon Growth Equity Feeder Fund (PHP Unhedged Class A) Peso Equity 27.43%
Manulife Asia Best Select Equity Fund (USD Class I) Dollar Equity 25.13%

10 best UITF equity index funds

Index funds are passively managed UITFs that try to portray the pricing movement of an entire market, specific industry, or particular asset type. Thus, their attractive feature is their relatively cheaper trust fees. The bargain, nonetheless, is that they are going to give an average return over time. And yet, index funds are prove to give superior returns in the long term.

This year’s top 10 equity index funds through UITF sees all classes of Security Bank’s Equity Index Feeder Funds topped the list. (Three classes A, B, F are defined for different target markets. Class F is for high-net worth individuals, B for institutional investors, and A for individuals.)

Lastly, out of 27 funds, nearly two out of three are in the red or have 0% return, 11 are gainers, and 8 are giving back double-digit ROI to investors. All of the funds are invested in foreign securities, and only one is in peso currency.

FUND NAME CURRENCY 1 YEAR RETURN
SB US EQUITY INDEX FEEDER FUND (Class F) Dollar 17.78%
SB US EQUITY INDEX FEEDER FUND (Class B) Dollar 17.78%
SB US EQUITY INDEX FEEDER FUND (Class A) Dollar 17.55%
BPI US Equity Index Feeder Fund Dollar 15.42%
BDO GLOBAL EQUITY INDEX FEEDER FUND Dollar 14.90%
BDO GLOBAL EM EQUITY INDEX FEEDER FUND Dollar 13.22%
SB GLOBAL EQUITY INDEX FEEDER FUND (Class F) Dollar 12.80%
SB GLOBAL EQUITY INDEX FEEDER FUND (Class A) Dollar 12.58%
BPI Invest US Equity Index Feeder Fund Class P (PHP Class) Peso 9.54%
BDO JAPAN EQUITY INDEX FEEDER FUND Yen 5.83%

10 best UITF balanced funds

Balanced funds appeal to any investor open to moderate earnings. Their constituent assets (meaning, the securities that they are invested in) are a combination of equities and fixed income. Therefore, they are exposed to the aggressive earnings of stocks and the low-risk profile, modest return associated with fixed income assets.

ATRAM Global Allocation Feeder Fund* led the top 10 UITF balanced bonds. It is followed by ATRAM US Multi-Asset Income Feeder Fund (PHP Unit Class)* and Robinsons Bank Tax-Exempt Retirement Fund (A Balanced UITF).

Out of 31 funds, 18 posted a loss or 0% return, 13 were in the green, and only 1 had double-digit gains. Only one is in US dollars.

FUND NAME CURRENCY 1 YEAR RETURN
ATRAM Global Allocation Feeder Fund* Dollar 18.94%
ATRAM US Multi-Asset Income Feeder Fund (PHP Unit Class)* Peso 8.92%
RBank Tax-Exempt Retirement Fund (A Balanced UITF) Peso 6.34%
Sterling Balanced Fund Peso 5.69%
UnionBank PHP Balanced Fund Peso 5.55%
Odyssey Diversified Capital Fund Peso 5.29%
BPI Bayanihan Balanced Fund Peso 4.66%
CTBC Bank – ATRAM Philippine Balanced Feeder Fund Peso 3.87%
Odyssey Diversified Balanced Fund Peso 2.77%
RIZAL BALANCED FUND Peso 1.60%

10 best UITF bond funds

Bond funds are attractive to people who are risk-averse. Because their holdings are debts by the government or corporate entities, their income is earned through the interest that is paid out in fixed amount and regularly in periodic manner.

In 2020, UnionBank PHP Tax Exempt Fixed Income Fund on top of the best 10 UITF bond funds. Five others joined it in the round-up of funds that posted over 10% gains. Out of 65 funds in consideration, 57 gained and only 8 posted a loss or 0% return.

FUND NAME CURRENCY 1 YEAR RETURN
UnionBank PHP Tax Exempt Fixed Income Fund Peso 12.32%
SB PESO BOND FUND Peso 11.58%
UnionBank PHP Fixed Income Fund Peso 10.84%
RIZAL PESO BOND FUND Peso 10.72%
ABF Philippines Bond Index Fund Peso 10.59%
EastWest Peso Long Term Bond Fund Peso 10.14%
Odyssey Peso Bond Fund Peso 9.73%
ATRAM Total Return Peso Bond Fund Peso 9.72%
BPI Fixed Income Portfolio Fund-of-Funds Peso 9.54%
CHINA BANK FIXED INCOME FUND (formerly CBC GS FUND) Peso 9.28%

10 best UITF money market fund

Money market funds have the lowest risk profile of all the fund categories. They are mainly invested in short-term debt instruments with terms that are less than a year long. RIZAL PESO MONEY MARKET is the leader for this category, followed by UnionBank PHP Short Term Fixed Income Fund, CHINA BANK SHORT-TERM FUND, and Peso Money Market Fund.

FUND NAME CURRENCY 1 YEAR RETURN
RIZAL PESO MONEY MARKET Peso 3.78%
UnionBank PHP Short Term Fixed Income Fund Peso 3.34%
CHINA BANK SHORT-TERM FUND Peso 3.32%
Peso Money Market Fund Peso 3.25%
East West Peso Short Term Fund Peso 2.96%
UnionBank USD Short Term Fixed Income Fund Dollar 2.87%
PRUInvest PHP Liquid Fund Peso 2.84%
BDO SHORT TERM FUND Peso 2.75%
BPI Money Market Fund Peso 2.68%
SB PESO MONEY MARKET FUND Peso 2.61%

Conclusion

Interested in UITF but you don’t know how and where to begin? Don’t worry. You can hop on to and read the guide on investing in UITF.

Or maybe you’ve already heard about it but you haven’t started in UITF. Have you missed those funds that are featured here? You can actually reach out to the trust companies that offer them.



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