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Ask Geri: How to Compute Value of My UITF Investment?

I’m sure in the long run our market will once again conquer level 7400. Maybe not in the near future, but if your investment horizon is not in the near future as well, then no worries.

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Hi Geri,

I opened a UITF investment with a major bank in 4Q2012. Monitored it a few weeks after and it seemed to be doing well. Then I intentionally forgot about it.

Recently though, as part of my new year resolution, I was trying to come up with my own personal statement of assets, liabilities and net worth. Upon checking my updated UITF value, it did not seem to have moved much from 2012. I was expecting it to have grown much already.

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Am I missing something? I just multiply my number of units to the NAVPU for the day right?

Thanks!

– Jane F. (via email)


Hi Jane,

Your computation is correct. As long as you know the number of units you have of the fund you invested in, just multiply it with the NAVPU (net asset value per unit) for the day, and you will derive the value of your UITF portfolio.

It also helps to keep track of the buying price of the units you have, especially if you invest regularly or employ cost-averaging. Likewise, knowing how much you initially invested vis-a-vis how much it is valued now can easily give you your percentage gain (or loss) and return-on-investment (ROI).

What you’re missing (maybe, especially if your UITF is heavy on stocks) is what happened to the stock market in 2013. After a very bullish run in the first half of 2013, the market then went downwards in the second half due to various reasons, both international and domestic. There were a handful of instances even, that PSEi erased all its gains for the year. It ended 2013 flat despite the strong start. The market trend might have affected your UITF portfolio, hence the small movement you have observed.

If you have no need for the money yet and just checking its value, no need to panic then. If your UITF is still positive despite the flat 2013, then congratulations (even if you missed the peak)! And oh, I hope you have seen some more recovery recently in the first few weeks of 2014.

I’m sure in the long run our market will once again conquer level 7400. Maybe not in the near future, but if your investment horizon is not in the near future as well, then no worries.

Hope this helps.

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About Geri (346 Articles)
Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

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