Chinabank has launched its first feeder fund-structured Unit Investment Trust Fund (UITF), Chinabank Income-Paying Dollar Bond Feeder Fund.  This is also the bank’s first UITF that provides a monthly income payout.

A feeder fund is a type of UITF that allocates at least 90% of its assets into a target fund. Chinabank’s new UITF will be mostly invested in an exchange-traded fund (ETF) managed by Vanguard, one of the largest and most respected investment companies in the world. Vanguard is renowned for its extensive selection of low-cost ETFs, mutual funds, and related services.

Similar to the bank’s other UITF products, the Chinabank Income-Paying Dollar Bond Feeder Fund offers investors affordable access to high quality securities, the opportunity to diversify their investment, and the potential for higher returns through professional fund management.  However, this is the only Chinabank UITF that automatically distributes the fund's profits to investors every month. Chinabank’s UITFs are managed by the bank’s Trust and Asset Management Group (TAMG).

"At Chinabank, we are focused on providing Filipinos with innovative investment solutions that meet their financial goals,” TAMG Head Mary Ann Lim said, noting that the bank now has 12 UITF products for different investor types—from conservative to aggressive. “Chinabank Income-Paying Dollar Bond Feeder Fund is a good option for investors seeking income and growth in the US bond market."

The Chinabank Income-Paying Dollar Bond Feeder Fund caters to investors with a moderate risk profile and an investment horizon of at least five years. This UITF is available at all Chinabank branches nationwide for a minimum investment of US$1,000.

UITFs are regulated by the Bangko Sentral ng Pilipinas but are not deposit products, hence, are not insured by the Philippine Deposit Insurance Corporation.