The intent to invest is there. The funds are ready. The risks are understood. What is often missing is the time to actively manage it all.
Between work, responsibilities, and day-to-day priorities, investing can feel like something that demands more attention than one can realistically give. This is where Unit Investment Trust Funds, better known as UITFs, often come into the picture.
A UITF is an open-ended pooled trust fund denominated in pesos or other acceptable currencies, managed and administered by a trust entity and offered to investors through participation.
Each UITF is a distinct pool of funds with its own investment objective and guidelines, as defined in its plan rules. When investors participate, they purchase units in the fund at a price called Net Asset Value per Unit (NAVPU), which is calculated and updated at the end of the day.
As the value of the underlying assets changes, the NAVPU moves accordingly, reflecting the current value of each investor’s participation.
Depending on the fund, UITFs can provide exposure to equities, bonds, or money market instruments. These funds are managed by professional fund managers who invest in them in line with these objectives.
UITFs offer built-in diversification by spreading investments across multiple assets, rather than relying on a single security.
Fund managers handle key decisions: what to invest in, when to adjust positions, and how to manage risks, based on ongoing market developments. This reduces the need for investors to monitor markets or make timing decisions on their own.
Investors can redeem their units, subject to the fund’s terms, providing access to their funds when needed.
They may also add to their investments overtime, either in the same fund or across different UITFs, allowing for a more gradual and flexible approach to building a portfolio.
UITFs use market-based pricing, meaning the NAVPU, reflects the current value of the underlying assets.
This provides an up-to-date view of performance. While values may move with the market, this ensures the pricing remains aligned with actual market conditions, rather than being fixed or delayed.
UITFs are relatively easy to monitor. Investors can view the NAVPU end-of-day, performance updates, and historical trends through their bank or fund provider.
This makes it straightforward to stay informed, without the need to actively manage or monitor individual investments.
UITFs bring together diversification, professional management, and accessibility in one structure. Movements in value reflect real market conditions, offering a transparent view of performance overtime.
Investors contribute to a fund, while professional managers handle the day-to-day decisions: from monitoring markets to executing investment strategies. Performance can be easily tracked through the fund’s NAVPU.
To get started, you don’t have to worry about the initial investment, which is generally low. For example, UITFs such as the Metro Money Market Fund offer an initial investment of only PHP 1,000. Other funds require at least PHP 10,000 or USD 500, depending on the fund. If you are a Metrobank client, you can invest in UITFs simply by visiting the nearest branch, Metrobank Online, or through the Earnest app.
If you would like to know more about UITFs or explore how they may fit your goals, visit https://www.metrobank.com.ph/investments/uitf or send an e-mail to uitf.central@metrobank.com.ph.
Mariel Lopez is an Investment Counselor at Metrobank under the Financial Markets Sector, drawing on her experience in Trust Banking. She holds a Bachelor of Arts degree in Political Economy from the University of Asia & the Pacific (UA&P), a Master’s Degree in Business Administration from the Ateneo Graduate School of Business, and has recently completed the Registered Financial Planner course. Outside of finance, Mariel is an avid reader and a certified barre instructor who also pursues intense workouts and is training for her first international hybrid race.
