Metrobank UITF

I had to pay a bill at Metro bank. And while waiting for my turn, I browsed through some of the pamphlets they have.

I just love bank pamphlets, they're such riveting reads. Yeah ok, I was bored to death.

I got through a couple and saw one about UITFs. I read through it and felt like I was in the twilight zone.

Why? Because the minimum initial investment is a whopping Php50,000!

And each top-up/additional investment should at least be 25k! What?!?!

And the fee isn't even cheap. At 1-2% per annum, depending on the fund, that's at par or more expensive than other funds.

In contrast, First Metro Asset Management, Inc. (FAMI) lets you invest with just Php5,000 to start. And each top up is only 1k.

FAMI is a mutual fund, (and if I'm not mistaken, outperforms the Metrobank UITF).

In the U.S. conventional wisdom shies away from mutual funds due to high fees and a good chance it doesn't beat the index. Over here though, mutual funds beating the index is common.

And apparently UITFs are more "exclusive" than mutual funds. Totally weird.

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photo credit: 401(K) 2013 via photopin cc


  1. There's a sucker born every minute.


  2. I don't get it. What's wrong about having an initial investment of 50k and top-up of 25k? Kung kaya naman ng investor, why not? I checked and, and performance YTD is almost the same (15.92% for First Metro and 19.63% for Metrobank). Management fee (which you mentioned is 1% - 2%) is already deducted in the NAV price so it is irrelevant. Nababawi naman sa performance. Also, what do you mean that management fee is at par or more expensive? Ilang percent ng mutual funds/UITF that you know have lower management fee? Can you list them down so we know? As far as I know, naglalaro halos lahat sila on those percentage.

    At the end of the day, financial planning is a personal thing. We can't say that people investing in Metrobank UITF are "suckers", just because you can't afford to invest in them. Di naman sya pyramiding, they are still valid investment instruments, right?

    1. Ouch! You sound like you're from Metrobank:)

      There's nothing "wrong" with it. But if performance is the same, why wait until you get 50k to invest?

      And yes, 2% for an equity fund is expensive. 1-1.x% is around what most other equity funds ask for. That's what I meant when it as at par or more expensive than other funds.

      And no, it is not irrelevant just because you don't see it. That's like saying your income tax is irrelevant because it's already deducted from your salary.

      It's still valid, sure.

      And even though I can afford to invest in it, why should I? It's performance isn't exceptional, as you pointed out. And having to wait until I get 25k to top up means it takes a relatively longer time before I can re-invest.

      It seems like just another UITF.

    2. Not from Metrobank and I don't have an account there either. Just sharing my thought. Kasi for me, sige it is par or more expensive siguro pero it is not exaggeratingly more expensive. I don't feel comfortable using the income tax as an analogy. Kasi management fee naman yun e. Based naman sa performance ng fund manager. For me, management fee matters only if you are not getting your money's worth. Kung at par performance ng fund, ok lang magdagdag ng management ng 0.x % diba? Kung at par yung management fee tapos olats yung performance from other mutual funds/ UITF, dun ako magagalit.

      Also, marami din naman taong mapera. They don't need to wait until they get 25k to top-up because they are earning hundreds of thousands per month. I guess it does not work for a lot of people, but does work for them. Basta point ko, di rin advantage sa kanila ang may minimum na 1K.

      Sorry I didn't want to sound to be mean. Nagulat lang ako kasi ang impression nung article nito, tanga lang ang nag-iinvest sa Metrobank. Para kasing nakita lang yung management fee, amount nung minimum initial investment and top-up. Maganda siguro malaman din anong advantage ng pag open ng UITF sa Metrobank? May tie-up ba sila sa international banks? May promos/ bonuses/ privileges ba ang mag-open dun? Hopefully, yung investors dun di lang naman nag-open because of ignorance. Natanong mo ba ang bank manager ang advantage nila over other mutual fund/ uitf, and bakit nila ginawang 50K minimum initial investment at 25K minimum top-up?

      By the way, anong example nung mutual fund/UITF na may 1% management fee.

      Keep up the good work

    3. Hi Anonymous,

      You have a reasonable expectation of fairness in my posts. For one, I've always tried to be objective. However, this is a blog. I'm not saying I should not have "journalistic integrity". But being a blog, it means it is - for lack of better comparison - more comparable to an editorial than a news article.

      And I simply do not agree with funds that require large chunks of your money before investing. Unless they somehow consistently outperform their peers.

      I think you're making a big deal about my take on the management fee. In the article, I said it was at par or more expensive. It was a similar one-liner in my reply to your comment.

      I simply highlighted that the only big difference of this fund with the others is the substantial initial and top-up investment.

      And yes, some people do have money and can pull out 50k without thinking twice. And if you're one of those people, then my sincere apologies for making you uncomfortable.

      Bu in reality, there are already enough financial services catering to the moneyed. I'm not interested in tooting their horn.

    4. Thanks for your reply. Yup I just realized it is a blog and not a research article. We have our own opinions.

      Going back again to my question. Can you tell me the mutual fund/ uitf you know that have the lowest management fee? I really am curious. The lowest I know so far is Philequity

    5. PhilEquity seems to be at 1.5% (not including the possible sales loads or exit fees).

      BPI's equity and index funds and have similar management fees. (except for their Odyssey funds, which are usually at 2%)

      BDO seems to have the lowest, with a 1% management fee.

  3. 50k din sir uitf sa chinabank & 10k ang additional when i inquired before, kya laking tuwa ko ng makita ko 5k lng sa open sa fami.

    1. Hi Grace! wow bigat dn pala. kala ko normal na yung 10k & 1k na initial at top-up.

  4. Sir.

    I would like to know if the top up/additional amount is required?

    Can I add top up in my own convenient time/sched?

    Thank you for your answer Sir.

    Randy K.

    1. Hi Randy K.

      No the top-up is not required. And yes, you can top-up whenever you like (as long as it's at least 25k, for Metrobank UITF).

  5. dba 25k lng ung initial initial participation?un kc ung nakalagay sa website nila for the equity fund.

  6. ano poh bang classe ng uitf ang maganda sa tulad qng baguhan ano yung ponakamagandang uitf investment ang the best