Frequently Asked Questions on Unit Investment Trust Funds

What is a Unit Investment Trust Fund?

A Unit Investment Trust Fund (UITF) is an open-ended pooled investment trust fund that is operated and administered by a trust entity such as Pru Life UK Investments. An open-ended investment means that the fund will continue to be managed with no predefined term or termination date. It is up to the investor to determine how long to keep the funds invested.

However, some UITFs may have holding or lock-in periods and, such as being subject to pre-termination fees when redeemed. Denominated in Philippine peso or any acceptable currency, each UITF fund is governed by a Declaration of Trust (or Plan Rules) which contains the mechanics for investing, operating, and administering the fund. A team of professional portfolio managers then invest the fund in various deposits and securities. Individuals and institutions take part in the UITF by purchasing units of participation in the fund.

Why should I invest in UITFs with PRU?

More diversified investment, less risk, more attractive returns. Reduce your risk of losses by investing in a wide array of securities.

Easy access to cash. Be able to redeem your investments after 30 business days.

Confidence in active and expert management. Our professional fund managers will do all the investing and trading for you.

Accessibility. Monitor your investments by using the PRUinvest Client Portal.

Pru Life UK’s stability and reliability. Pru Life UK is the country's pioneer of ‘insuravest’ or investment-linked life insurance products. It is one of the top three life insurers in the Philippines.

How different is a UITF from a mutual fund and a variable unit-linked (VUL) or investment-linked insurance?
UITFMutual FundVUL insurance
Purpose and structurePure investmentPure investmentInsurance with investment component
Offered byBanks’ trust department or a trust companyInvestment companyInsurance company
OwnershipUnits of participation in a fundCommon Shares of an investment companyInsurance policy with an investment feature
RegulatorBangko Sentral ng Pilipinas' (BSP)Securities and Exchange Commission (SEC)
Are there fees when investing in UITFs?

Trust and management fees differ for each type of fund and will cover the costs of investment research, management, marketing and routine administrative expenses of the trustee. These fees are charged to the fund and not to the investor. There are no front- or back-end fees. However, pre-termination fees may be charged from proceeds of redemption transacted within the UITF’s holding period, if applicable.

What are the risks of investing in a UITF?

There are risks involved in investing in UITFs because the value of your investment is based on the Net Asset Value Per Unit (NAVPU) of the fund which uses a marked-to-market valuation, and therefore, may fluctuate daily. There are no guarantees of principal nor income. UITFs are governed by Bangko Sentral ng Pilipinas' regulations but are not deposit products, hence are not covered by the Philippine Deposit Insurance Corporation (PDIC).

What is a Net Asset Value (NAV) and Net Asset Value Per Unit (NAVPU)?

The Net Asset Value of the fund is the sum total of all the funds’ underlying assets less fees and liabilities. The NAVPU represents the price per unit of participation, which indicates the current value of each unit being invested in. It is computed as the NAV divided by the total number of units of participation in the fund.

Can a client invest in more than one type of UITF?

Yes. Clients may diversify their investments across various UITFs as long as the funds are in line with their own investment objective and they can tolerate the risks involved with the funds.

What is the holding period of PRU Life UK Investment’s UITFs?
UITFHolding Period
PRUInvest PHP Liquid FundNone
PRUInvest PH Equity Index Tracker Fund30 business days (Any redemption made during this holding period is subject to a pre-termination fee of 0.50% of the redeemed amount.)
PRUInvest PHP Dynamic Equity Fund30 business days (Any redemption made during this holding period is subject to a pre-termination fee of 0.50% of the redeemed amount.)
PRUInvest USD Liquid FundNone
PRUInvest USD Intermediate Term Bond Fund30 business days (Any redemption made during this holding period is subject to a pre-termination fee of 0.50% of the redeemed amount.)
PRUInvest USD High Yield Asian Bond Feeder Fund30 business days (Any redemption made during this holding period is subject to a pre-termination fee of 0.50% of the redeemed amount.)
PRUInvest USD Global Market Balanced Fund of Funds30 business days (Any redemption made during this holding period is subject to a pre-termination fee of 0.50% of the redeemed amount.)
PRUInvest USD Global Technology Equity Feeder Fund30 business days (Any redemption made during this holding period is subject to a pre-termination fee of 0.50% of the redeemed amount.)
When does the investor get the proceeds of the UITF investment?
UITFSettlement Period
PRUInvest PHP Liquid FundT + 1 business day
PRUInvest PH Equity Index Tracker FundT + 4 business days
PRUInvest PHP Dynamic Equity FundT + 4 business days
PRUInvest USD Liquid FundT + 3 business days
PRUInvest USD Intermediate Term Bond FundT + 4 business days
PRUInvest USD High Yield Asian Bond Feeder FundT + 7 business days
PRUInvest USD Global Market Balanced Fund of FundsT + 7 business days
PRUInvest USD Global Technology Equity Feeder FundT + 7 business days
Is there an indicative or guaranteed rate of return for UITF products?

No. Since UITFs are subject to the mark to market valuation method, the NAVPU may fluctuate depending on the volatility of the market.

What is a feeder fund and a fund of funds?

A feeder fund is a UITF structure that mandates the fund to invest at least 90% of its assets in a single collective investment scheme or target fund.

A fund of funds, on the other hand, is a UITF structure that mandates the fund to invest at least 90% of its assets in more than 1 collective investment scheme or target fund.

The target fund is a local or foreign collective investment scheme.

What is a multi-class UITF?

A multi-class UITF is a type of fund with more than one class of units which can be differentiated based on the level of trustee fees and expenses, minimum participation, minimum holding period, and target participants. In the case of Pru Life UK Investment’s multi-class funds, classes are differentiated in terms of trust fees depending on the invested amount.

How do I know which UITF is best suited for me?

Prior to investing, you are required to take a Client Suitability Assessment to know what type of Fund is suited to your investment objectives and risk tolerance.

All funds/products of Pru Life UK Investments are not deposit products and are not insured by the Philippine Deposit Insurance Corporation (PDIC). Returns cannot be guaranteed and historical performance, when presented, is purely for reference purposes and is not a guarantee of similar future results. When redeeming, the proceeds may be worth less than the original investment and any losses will be solely for the account of the client. Pru Life UK Investments is not liable for any loss unless upon wilful default, bad faith or gross negligence. The investor is advised to read the complete details of the fund stated in the plan rules which may be accessed at www.prulifeukinvestments.com.ph/products, assess his/her own risk tolerance, and when necessary, seek independent/professional opinion before deciding to invest.