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RETAIL FUNDS | Cesar Tordesillas, Philippines
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BDO UITFs consistently give competitive returns

  THE trust and investments group of BDO has rewarded its clients last year with competitive returns on investments from its various unit investment trust funds.

      Figures showed that the ROIs of Banco de Oro’s UITFs, namely, the Peso Money Market Fund, Peso Bond Fund, Government Securities Fund, Peso Fixed Income Fund, Peso Balanced Fund, Equity Fund, Dollar Money Market Fund, Dollar Bond Fund and Medium-Term Dollar Bond Fund, have performed better versus their respective benchmarks.

      For instance, BDO’s Equity Fund for 2010 outpaced the benchmark PSE index by 12.97 percent with the former earning 50.59 percent compared to the latter’s 37.62 percent.

      The same trend was likewise displayed by the Peso Balanced Fund, which posted a ROI of 39.81 percent in 2010 compared with the 19.02 percent performance of its benchmark – the average PSEi and the Bloomberg average 30-day special savings rate.

      Ador Abrogena, executive vice president for BDO’s trust and investment group, said the Bank’s UITFs did not only perform well vis-à-vis their respective benchmarks in 2010 but also in the last five years, which included a global downturn in asset prices.

      “Fund returns are normally compared to a benchmark which is a standard that has the same risk return characteristics as the fund being rated. The standard normally used is an index that represents the market for the securities that the fund invests in,” Abrogena said.

      He added the returns from UITFs were commensurate with the risks taken by each UITF – high returns entail high risks and low risks produce low returns.
 

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