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Philippines : BPI introduces two new funds for investors

August 9, 2014

Bank of the Philippine Islands has launched two new finances for investors seeking cash in on the US and European equities market.

On the sidelines of the 6th Annual Corporate Treasury and CFO Summit, BPI Asset Management and Trust Group head Maria Theresa M. Javier told that it has introduced unit investment trust funds (UITFs) that are benchmarked to US and European exchange traded funds (ETFs).

"We call it the BPI US Equity Feeder Fund and BPI European Equity Index Feeder Fund. Feeder funds are basically UITF that can invest to 90 percent of the portfolio in a one target fund," Javier said.

The feeder finances give small investor access to investment outlets that are usually available only to institutional investors.

BPI's US fund tracks total returns of the S&P 500, an indicator for the broad market of US stocks.

"The motivation there is for investors interested purely in US equities because you expect the US economy to recover, earnings of US companies to show very strong growth in the medium term," Javier said.

"Europe is an interesting story because it's been struggling to recover but I think in the past three years there's been a lot of scare about Europe -- even the Euro as a currency -- but I think it's out of the woods. Probably the strongest potential to recover would be European equities because they is still undervalued," Javier said.

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Source: TendersInfo (India)

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