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Friday, March 29, 2024

Invest in S&P 500 firms via new UITF product–RCBC

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Lender Rizal Commercial Banking Corp. (RCBC) said it will unveil a new unit investment trust fund (UITF) product that will make investing in the United States equity market easier for a minimum amount of $200.

The bank said it is launching the RCBC US Equity Index Feeder Fund (RUEIF), a UITF that invests at least 90 percent of its funds in Blackrock Fund Advisors’ iShares Core S&P 500 Exchange Traded Fund (IVV).

The IVV, in turn, tracks the investment performance of the S&P 500 Index, widely regarded as the best single gauge of large-cap US equities, by investing in such corporate giants as Tesla Inc., Apple Inc., Microsoft Corp., Amazon.com Inc., Facebook Inc. and other leading US companies.

“The initial investment amount is $200, one of the lowest and most affordable in the Philippines, with no holding period and with a short settlement date of four banking days after the redemption transaction,” the bank said.

Clients who are aggressive in terms of their investments can see potentially higher returns for their funds in the RUEIF through capital growth.

“Investing in RUEIF is also a good opportunity for clients to diversify their investment portfolios and have exposure to global markets.”

Investing in the said product is available online and those who want to invest need to enroll in the fund by logging in to the RCBC online banking retail website.

The bank also offers a wide range of UITFs including its RCBC Peso Short Term Fund, Rizal Peso Money Market Fund, Rizal Peso Cash Management Fund, Rizal Dollar Money Market Fund, Rizal Peso Bond Fund, Rizal Dollar Bond Fund, Rizal Balanced Fund, Rizal Equity Fund, RCBC R25 Dividend Equity Fund, and the RCBC R25 Blue-Chip Equity Fund.

UITFs are pooled funds from individuals and institutions that are invested in different financial instruments with an initial investment. The minimum amount required to start investing in UITFs with RCBC is P5,000.

Blackrock is the world’s largest asset manager with assets under management of $8.68 trillion as of end-2020.

The RCBC Trust and Investment Group oversees investments for UITFs, investment management accounts, and trust accounts, among others.

RCBC said it has recently complied with the Asset Manager Code of Professional Conduct and Global Investment Performance Standards of the Chartered Financial Analyst Institute, which the bank said signifies its commitment in growing and protecting the wealth and investments of its stakeholders. The bank also has one of the top trust businesses with P127 billion in assets under management as of 2020.

Read full article on BusinessMirror

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