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Frequently Asked Questions about Unit Investment Trust Funds

1.   What is a Unit Investment Trust Fund (UITF)?

A UITF is an open-ended pooled trust fund denominated in pesos or any acceptable currency, which is operated and administered by a trust entity and made available by participation.

In the case of China Bank UITFs, the trustee is China Bank-Trust and Asset Management Group. Each of the ten UITFs we are currently offering is governed by a Declaration of Trust (or Plan Rules) which contains the investment objectives of the UITF, as well as the mechanics for investing, operating, and administering the fund.  Any person, association, corporation, entity or firm who/which has the legal capacity to contract or establish a trust may invest or participate in China Bank UITFs.

2.   What are the UITFs offered by China Bank?

•  China Bank Cash Fund
This fund is intended for both individual and corporate customers with "conservative" risk profile. Clients can enjoy high level of liquidity on one hand and better earnings potential versus those offered by regular savings deposit accounts and money market placements. The minimum initial investment is P5,000.

•  China Bank Money Market Fund
A peso-denominated money market fund with minimal volatility and high level of liquidity; invested primarily in short-term marketable fixed-income securities such as deposits and government securities.  The minimum initial investment is P5,000.

•  China Bank Short-Term Fund
Unlike other peso-denominated money market funds invested mostly in deposits, the China Bank Short-Term Fund's portfolio may also include fixed-income instruments issued by the Philippine government and prime corporate entities thereby providing the opportunity to generate better returns.  This caters to investors with moderate risk profile who want ready access to their money but would still like it to keep on working until the next investment opportunity comes along. The minimum initial investment is P5,000.

•  China Bank Intermediate Fixed-Income Fund
A peso-denominated intermediate bond fund with an average portfolio duration of not more than three years, just the right amount of time for your funds to take advantage of relatively better returns from fixed-income instruments issued by the Philippine government and prime corporations but with lesser degree of volatility that is characteristic of instruments with much longer investment tenors.  Caters to investors with a moderate risk profile and have the capability to invest for more than a year in exchange for the prospect of obtaining better returns on high-grade fixed-income investments. The minimum initial investment is P5,000.

•  China Bank Fixed Income Fund
A long-term bond fund invested in peso-denominated notes, bonds or securities issued by or guaranteed by the government of the Republic of the Philippines or the Bangko Sentral ng Pilipinas or private corporation with at least AA-rating given by a recognized rating agency. The Fund is suitable for investors with moderate risk appetite and are looking for higher yields and are willing to take the attendant risks that come with portfolios that that may have investments with longer tenors. The minimum initial investment is P5,000.

China Bank Balanced Fund
Offers a good mix of investments in high-grade and marketable fixed-income securities issued by the Philippine government and prime corporations as well as choice equity issues listed in the Philippine Stock Exchange. Intended for aggressive investors with an investment horizon of at least one year and who are able to tolerate a higher level of volatility in exchange for higher potential returns. The minimum initial investment is P5,000.  

China Bank Equity Fund
A peso-denominated fund invested primarily in equities and short-term, tradeable fixed-income securities with the share of equities not to exceed 95% of the Fund at any point in time. The minimum initial investment is P5,000.

China Bank High Dividend Equity Fund
Intended to provide clients with an "aggressive" risk profile long-term capital appreciation by investing mainly in a diversified portfolio of choice common and preferred equity issues listed in the Philippine Stock Exchange which have regular dividend payment policy and/or payment track record. The minimum initial investment is P5,000.

China Bank Philippine Equity Index Tracker Fund
To provide clients with “aggressive” risk profile capital appreciation by investing in a diversified portfolio of stocks representative of the Philippine Stock Exchange Index (PSEi) composition and its corresponding weights. The Fund aims to mirror the returns of its benchmark, the PSEi.

China Bank Dollar Cash Fund (formerly Dollar Money Market Fund)
This fund is intended for customers with "conservative" risk profile. Aims to achieve for its participants liquidity and to potentially earn higher than USD time deposits. The minimum initial investment is US$500.

China Bank Dollar Fund
A dollar-denominated, long-term bond fund which aims to generate above-average returns by investing in high-grade marketable securities comprised mainly of US dollar-denominated government securities. The minimum initial investment is US$500.

3.   How do I know which China Bank UITF is right for me?

In choosing a UITF, you should consider these:

o Investment capacity - how much of your money is available for investment?
o Investment horizon - how long can you stay in the fund?
o Risk profile - how much risk are you willing to take?
o Investment objective - what do you want to achieve by making the investment?  Is it income or capital growth?

Our accredited UITF marketing personnel will help you determine these with a Client Suitability Assessment (CSA). The CSA will help you understand the type of investor you are—whether you are a conservative, moderate, or aggressive investor—and enable us to recommend the China Bank UITF or UITFs most suitable for you.

4.   How can I invest or participate in a China Bank UITF?

You can invest or participate in a China Bank UITF for a minimum of P5,000 at any China Bank branch.  When you invest, you are actually purchasing units of participation. The price per unit, known as the Net Asset Value per Unit (NAVPU), is computed daily and it varies. Several factors affect the NAVPU including, the prevailing market conditions which affect the price of securities, gain or loss resulting from daily marking-to-market of the assets held by the fund, the daily accrual of interest in case of fixed-income investments, and dividends earned in case of equity investments.


Money Invested : P50,000.00
NAVPU on the date of purchase: P1.1102
Divide the money invested by the NAVPU on the date of purchase

50,000.00 / 1.1102

Units purchased: 45,036.93 units

Additional investments to your UITF account may also be done via China Bank Online and Mobile App. Click here for the China Bank Online FAQs and here for the Mobile App.

5.   What are the evidences of participation in a China Bank UITF?

When you invest in a China Bank UITF, we will provide you with the following:

o Omnibus Participating Trust Agreement
o Risk Disclosure Statement
o Subscription Advice

The Subscription Advice documents the amount of funds invested, the NAVPU on the date of purchase, and the corresponding number of units of participation.  Meanwhile, withdrawals are represented by a Redemption Advice.

6.   How will I earn from investing in a UITF?

You earn when the NAVPU at the time of withdrawal or redemption is greater than the NAVPU at the time of participation; thus, the higher the difference, the higher your earnings. To determine your gains/loss, simply subtract the NAVPU on participation date from the NAVPU on redemption date, multiplied by the units purchased.


Investment: P100,000.00
Participation date: April 28, 2018
NAVPU on participation date: P1.054585
Units purchased: 94,824.030306
Redemption date: May 28, 2018
NAVPU on redemption date: P1.087269
No. of days lapsed: 30 days

P1.088269 - P1.054585 = P0.032684 x 94,824.030306
Gain on Php100K investment after 30 days: P3,099.23

The amount earned during the 30-day period may be converted into a percentage return by simply dividing the difference with the NAVPU on participation date:

P0.0326849 / P1.054585
Absolute Percentage Return: 3.10%

7.   Are the returns from UITF investments guaranteed?

No, returns or yields on UITF investments are variable and cannot be guaranteed by any bank or trust institution offering UITFs. Firstly, UITFs are subject to the mark-to-market valuation method and the NAVPU may fluctuate depending on the volatility of the market. Historical performance may provide an indication of how well a UITF is managed, but this is not a guarantee of future performance. Secondly, UITFs are not deposit products.  When you participate in a UITF, you are making an investment and not a deposit; thus, UITFs are not considered as bank obligations. UITFs are not insured or governed by the Philippine Deposit Insurance Corporation (PDIC).

Although returns on UITF investments cannot be guaranteed, UITF investors have control over when to realize gains or avoid losses. Note that mark-to-market gains or losses remain as paper gains or losses unless an actual redemption is made.

8.   Where can I find information on the historical performance of China Bank UITFs? What about the NAVPU?

The Fund Performance Report for each China Bank UITF is available in this website (on the right side of each UITF link) and at any China Bank branch nationwide.  You can also find information about the return on investment (year-on-year and year-to-date yields) of all the available UITFs in the market at and in newspapers.   Although not a guarantee of similar future results, China Bank’s historical performance shows our track record of outperforming our benchmarks and providing returns that correspond to the risks that our UITF investors have taken.

As for the NAVPU, you can easily check the daily NAVPU of each China Bank UITF here or by calling any China Bank branch or China Bank TellerPhone: (632) 8885-5888.

9.  When and how can I withdraw/redeem my UITF investment?

There is no fixed term for UITFs, so you can withdraw or redeem your investment before the cut-off time for UITF transactions which is 12:00 noon. Simply go to the China Bank branch where you opened your UITF and you will be issued a Redemption Advice.   Note that there is a minimum investment holding period, ranging from 3 business days to 30 calendar days (depending on the UITF), and that if you make a withdrawal before the end of the minimum holding period, there is an early redemption fee.  Note also that the redemption settlement or the day you can receive the proceeds of your UITF investment varies, depending on the UITF. 

10.  Are the proceeds of my UITF investment subject to taxes?

Taxes, when due, are already deducted when computing the NAVPU. So when you redeem your UITF investment, the proceeds are already net of taxes.

To invest in China Bank UITFs or for more information, please visit any China Bank branch or call China Bank Trust and Asset Management Group – Sales and Marketing Division at (632) 8885-5841 / 8672-9363 / 8672-9363 / 8230-6904, or email


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