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San Miguel Corp.'s Banking Arm Ranks High in Latest UITF Survey

Strategic Insights

— 2 min read

Bank of Commerce, a subsidiary of diversified conglomerate San Miguel Corp., has made a mark in the country's UITF (Unit Investment Trust Fund) landscape with two of its peso unit investment trust funds ranking top in their respective categories. According to a recent industry survey by www.uitf.com.ph, the Diversity Money Market Fund (DMMF) and the Diversity Peso Bond Fund (DPBF) of Bank of Commerce took third place in their categories, beating out numerous competitors. The DMMF offers conservative investors a safe bet with its focus on short-term investments, while the DPBF has demonstrated resilience in a challenging environment, solidifying its position as one of the most defensive long-term bond UITFs in its category.

Key Takeaways:

  • The Diversity Money Market Fund (DMMF) of Bank of Commerce ranked third in its category for the past 12 months, beating 33 other funds.
  • The Diversity Peso Bond Fund (DPBF) of Bank of Commerce also took third place for the period ending June, outperforming nine other funds in its category.
  • The DMMF invests in bank deposits, Treasury bills, and other short-term investments, aiming to offer conservative investors a safe bet with a horizon of one year or less.
  • The DMMF requires a minimum placement of P10,000, which can be held for at least 30 days to earn a potential net rate similar to what an investor with P1 million in deposits or government securities would earn.
  • Bank of Commerce's easy investment plan allows clients to start a savings plan even with a small amount, making it an attractive option for those looking to build a nest egg.
  • Despite the challenging environment for bond-type funds, the DPBF remains one of the most defensive long-term bond UITFs in its category, demonstrating the fund management competence of Bank of Commerce.
  • San Miguel Properties Inc. and San Miguel Corp. Retirement Plan hold 39.89% and 38.54% ownership of the issued shares of Bank of Commerce, respectively.
  • SMC through SMC Equivest Corp. invested P5.5 billion in Bank of Commerce last year to upgrade its operations from a commercial to universal bank.
  • The bank's total capital increased by 39% to P23 billion last year after the investment.

Statistics:

  • DMMF ranked third in its category with returns beating 33 other funds.
  • DPBF took third place for the period ending June with returns outperforming nine other funds.
  • DMMF requires a minimum placement of P10,000.
  • The DMMF has a time horizon of one year or less.
  • DPBF remains one of the most defensive long-term bond UITFs in its category.
  • Bank of Commerce has a network of 140 branches.
  • The bank aims to deploy more ATMs in addition to the 253 count at end-March.
  • SMC's investment in Bank of Commerce translated to a 39% jump in the bank's total capital to P23 billion.

Sources:

  • www.uitf.com.ph (UITF resource center)
  • Bank of Commerce senior vice president and Trust Services Group head Gamalielh Ariel Benavides.

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