Security Bank Corp. on Monday introduced a new investment vehicle, a unit investment trust fund (UITF), that will allow local participants to invest in companies across the Asia-Pacific region.
The bank said the new product—dubbed the SB Asia Pacific Equity Feeder Fund—caters to retail investors with the appetite for global investments.
The product is a dollar-denominated UITF that feeds into an offshore fund. This fund is managed by Mitsubishi UFJ Trust and Banking Corp., the trust-banking arm of the Mitsubishi UFJ Financial Group (MUFG).
“Through our partnership with MUFG, we are opening more opportunities for our clients to venture outside the Philippine market and invest in one of the most exciting and most promising regions in the world,” Security Bank President and CEO Alfonso L. Salcedo Jr. said.
The banking unit of MUFG, the Bank of Tokyo-Mitsubishi UFJ, bought a 20-percent stake in Security Bank in 2016.
“We assess companies with above-average earnings growth and below-average earnings volatility to consistently earn attractive long-term returns,” Mitsubishi UFJ Trust and Banking Corp.
Cochief Fund Manager for Asia Pacific ex-Japan Equity Stable Growth Fund Ernest Sutanto said.
The bank said an experienced investment team in Singapore selects companies for the fund through analysis of specific criteria suited to investing in Asian companies.
The companies the fund has already invested in include the Chinese tech giants Tencent Holdings and Alibaba Group, and South Korea’s Samsung Electronics.
“We expect to see more upside in Asia Pacific in the coming months since there are strong corporate earnings, growing at more than 12 percent next year while the current valuations has a premium 15 times greater than their average earnings,” Sutanto said.
“China’s GDP is also expected to grow above 6 percent, while Chinese companies will be seeing better margins with the supply reforms and initiatives by the government,” he added.