Eunice Cerdea Mark Darrell Mendoza

FINA402 Homework #2

June 17, 2013 FM4A

RCBC Phoenix Dollar Fund UITF Moderate in moneyness. Since RCBC Phoenix Dollar Fund UITF invests in short-term securities, they can be converted into cash in two (2) or three (3) years time. Also, since it is a type of UITF, buying and withdrawal is easy. Going to the bank and requesting for withdrawal would immediately transfer your funds to your settlement account.

1. Moneyness

P3.85B fixed rate issued. Based on our research, RCBC Phoenix Dollar Fund UITF had issued the first portion of its P3.85 billion in fixed rate and zero coupon Long Term 2. Divisibility and Negotiable Certificates of Time Deposit. Of the amount, P2.033 billion were from fixed rate Denomination and P1.817 billion were from zero coupon Long Term Negotiable Certificates of Time Deposit (LTNCDs). Low reversibility. It has a low reversibility because any fluctations or volatility of the RCBC Phoenix Dollar Fund UITF would be charged into the account of the investor. Thus, if fluctuation would be high, it could result to a lesser chance for the investor to get back his investment in cash. Maximum tenor of two (2) year. RCBC Phoenix Dollar Fund UITF invests in short term fixed income securities. Their minimum holding period is thirty (30) days. Moderately liquid. Ever since Unit Investment Trust Funds (UITFs) are launched, they show a positive increase in the financial market. The RCBC Phoenix Dollar Fund UITF is moderately liquid because for the past quarter, they showed a positive increase though fluctuations Not convertible. RCBC Phoenix Dollar Fund UITF cannot be converted to any other financial assets. Peso and Dollar Currency. Based on our research, the RCBC Dollar Fund UITF can be bought in peso or dollar. RCBC UITFs can be bought for a minimum of PhP 25,000 for peso currency or USD 1,000 for dollar currency.

3. Reversible

4. Term to Maturity

5. Liquidity

6. Convertibility

7. Currency

1.29 USD mutual fund Net Asset Value. On our research, the dividends of RCBC 8. Cash Flow and Phoenix Dollar Fund UITF are included in mutual fund Net Asset Value which has a Return value of 1.29 USD. It also shows that there is an additional 0.002% year dividend Predictability growth. Complex. RCBC Phoenix Dollar Fund UITF is complex because based on our research, they are not deposits or obligations and are not guaranteed, or insured of RCBC and any of its affiliates or subsidiaries. They are also not insured by the Philippine Deposit Insurance Company (PDIC). Thus, they are complex because they are exposed to market fluctuations and price volatility. The RCBC Phoenix Dollar Fund UITF is similar to the taxation terms of Common Trust Funds (CTF). Since they are both handled by the trust department of banks, they are not taxable entities and income paid to these funds is also not subject to income tax. The income of the common trust fund is subject to 20% final withholding tax upon distribution to the investors.

9. Complexity

10. Tax Status