Unit Investment Trust Fund,a bond on the run of Banco de Oro

[little chicken]

We invest in banco de Oro's UITF account.The Branch manager told us it is a very good investment of above benchmark of 11.25% with portfolio mix diversified to secured gov't securities and debt securties of SM prime holdings and SMC.She added the risk was minimal and could only affect the interest rates from 16% to 8%.After 30days we've found out our secured peso bond fund value was less 10% from the principal amount.When we compared with other banks,we found out what they sold to us was very high risk junk bonds.We would like to warn fellow Iliganons never be deceive by this bank.We lost several thousands in our investments with BDO.Who would ever think" manikas sila?"Â* Â* Â* Signing a weaver formÂ* that denotes without recoarse,would anyone dream of that Henry SyÂ* Â* would do this?

[digitalsuperman]

wow! definitely this is an eye opener.. thanks for the heads up! :mrgreen:

[kalinaw]

extra careful with your money pag abot ana butanga.... been engage with BDO sa ilang Money Market (its a USD trust fund not PDIC insure) pero okay naman. My 1st hand experience mas taas pa sila kumpara sa HSBC ug Far East (take-over by BPI).

Yung trick sa mga ingon anang investment, kinahanglan kaila nimo ang bank manager kay maka hatag sila ug maajong yield sa imong investment.

[little chicken]

extra careful with your money pag abot ana butanga.... been engage with BDO sa ilang Money Market (its a USD trust fund not PDIC insure) pero okay naman. My 1st hand experience mas taas pa sila kumpara sa HSBC ug Far East (take-over by BPI).

Yung trick sa mga ingon anang investment, kinahanglan kaila nimo ang bank manager kay maka hatag sila ug maajong yield sa imong investment.

You should check your $money market fund before saying "ok."You might deceive the public.I invested in both products.P&$money market fund including peso bond fund.In Manila,lots of investors incured severe financial losses bec BDO hide all pertinent data about the Bonds they are selling...a JUNK BONDS!A high yield High Risk bonds thats why it dropped so much compared to BPI,PCI or even its sister company China Bank.People can check at www.bancodeoro.com.ph.Theoritically,money market fund either P or $ should not be affected in volatility since the fund draws from liquid sources.But BDO abused its investors in Mla without sparring all trust fund.Binaladjay kaming tanan destroying our full TRUST given to the bank.Only in the Phils,who could be safer nowadays,after Pacific plans of Yuchengco(RCBC),Bonds of BDO,what's next?Fire insurance?Savings deposit?

[dagget]

Bonds are unsecured loan... no collateral.... not even henry sy's mall

anyway money market is buying goverment treasury bills.... its the goverment borrowing your money ang paying you the interest or spreads as they call it....

overall money market or t-bills are safer than bonds since the goverment(or the taxpayer will have to pay it. they call it sovereign guarantee meaning the taxpayers will have to pay no matter what)

Bonds are tricky many companies issue bonds

Globe, PLDT, San Miguel etc.....

bonds are attractive to companies since they don't have to put up any collateral at all

but if the company goes bankrupt..... then you won't get any of the companies asset since its unsecured...........

bonds are rated AAA to junk....

junk bonds have higher yields(interest rates) but the risk of non-payment is higher

AAA bonds have lower yields but there is less risk of non-payment

i think in your case you were lured into the high interest rate offered

but the problem is BDO sold you a bond of their own sister companies

as a rule never buy bonds from a bank who also owns the company which issued it..... its like ENRON type of disaster

BDO offered you bonds of SM..... BDO is owned by SM..... so BDO will always say SM bonds are very good(when will they say its bad)

so its a lesson for you.... when you are offered bonds check out the company first.... track records are important

[Wildstar]

unfortunately, this topic is about BDO... but take note that almost all banks that offered UITFs, whether it is GS (government securities) or Equities (stocks), are suffering losses...

while it maybe true that sellers do not tell you everything about its downside, it maybe partly ones fault for being lured into a high yielding investment... would you complain if things were still going up? do people understand the relationship between yields and interest rates?

generally speaking, SM bonds are not bad... its the managers of your UITF... Unit Investment Trust FUND... its supposed to be a fund... meaning its a basket of several bonds/equities... if one company doesnt perform, the other performers ought to make up for the slack... BUT since the philippine market has taken a big slide... then the net result would indeed be a negative performance...

another underlying problem is the lack of education among depositors/investors... if you understood how a fund works, then you wouldnt be complaining...

oh, the papers they asked you to sign is a BSP requirement...

[kalinaw]

You should check your $money market fund before saying "ok."You might deceive the public.

Binaladjay kaming tanan destroying our full TRUST given to the bank

Inquired every quarter & held for 5 yrs, the day i close my account i go home with an extra amount.Â*Â*

The 2nd line is striking, sound like you been into peramiding & left bag holder.

another underlying problem is the lack of education among depositors/investors... if you understood how a fund works, then you wouldnt be complaining...

oh, the papers they asked you to sign is a BSP requirement...

Exactly there are always two sides of the coin. FM lure you with a shitloads of cool return & you forget to factor-in the other side of the coin.

[little chicken]

unfortunately, this topic is about BDO... but take note that almost all banks that offered UITFs, whether it is GS (government securities) or Equities (stocks), are suffering losses...

while it maybe true that sellers do not tell you everything about its downside, it maybe partly ones fault for being lured into a high yielding investment... would you complain if things were still going up?Â* do people understand the relationship between yields and interest rates?

generally speaking, SM bonds are not bad... its the managers of your UITF... Unit Investment Trust FUND... its supposed to be a fund... meaning its a basket of several bonds/equities... if one company doesnt perform, the other performers ought to make up for the slack... BUT since the philippine market has taken a big slide... then the net result would indeed be a negative performance...

another underlying problem is the lack of education among depositors/investors... if you understood how a fund works, then you wouldnt be complaining...

oh, the papers they asked you to sign is a BSP requirement...
Its

The question here is not the lack of education among the depositors,its the TRUST you've given.Companies have missions and goals.Should they throw away good corporate governance?The Issuer is responsible for providing details as to its financial soundness & credit worthiness.I am not complaining to you or to anybody else.I'm telling people how horrible my experience was trusting a banker.Was the Phi. market took a big slide?or somebody took all those eggs in his basket.Well, you sound like frm China Bank or frm BDO but nobody in trust grp of BDO showed where our investment goes.An ethical person ought to do more than he's required to do and less than he's allowed to do.

[Wildstar]

well... its like what i said... its the managers of your uitf... also, im not justifying the actions of your bdo banker... but the market did really take a hit... and it does affect the uitfs... this problem is not exclusive to bdo but to almost all banks who offer uitfs...

it may be a question of TRUST with your bankers... but they do not control the markets... the issuer of the underlying investment do provide details... for example, when the goverment will issue T-Bills, they will provide information as to the mechanics of the issue... the fund manager also provides details as to what type of fund they are offering... if your banker did not give you any details as to how/where the funds are being placed (usually a one page summary is given), that is another matter... but since you TRUST him, maybe you didnt bother to ask... whether or not he told you ALL pertinent details depends on your TRUST level... whether he warned you of possible losses (which often times are not told and maybe investors dont bother to ask after hearing the big gains to be made), that again depends on the level of TRUST you have with your banker... the usual method is just to tell you that you will gain xx amount, then you will conclude that this is a good investment... whether your banker deliberately did not tell you that you might incur losses, that is another question...

all im pointing out is that one should be familiar with the pros and cons of participating in a fund... losses do incur if the fund turns sour... you may lose part of your principal investment... and just as kalinaw said, there is the flip side of the coin...

and believe me, you are not the only one who is affected...

[little chicken]

People with borderline conditions used primitive defense mechanisms. Evades thoughts and feelings conceived as disturbing following initial attempt to disagree where obvious signs of deception and lacking self-esteem. Ambivalence is frequently experienced by afflicted Fund managers their efforts to manage. Attitude towards people they encountered shifting blame were evoked, a form of overcompensation for rejection and cash paid to their baskets. An individual who continous to be anal stage of psychoanalytic concepts for beyond the age where bossiness,grandiosity,selfishness,obstinacy are said to be obstinate and parsimonious adult. Whereas,reaction-formation, splitting, intellectualization, rationalization, and undoing are common defense mechanism used by pathologic liars. Am I complaining? You guys should read between the lines. What was posted was to inform the public the kind of people we dealt. An awareness of where our country is leading to.Freedom of speech is guaranteed by the constitution. Bonds don't just sell anywhere. Like mutual funds these were available at commercial banks. You should have acquired formal intelligence about Moral responsibility,commitment,Trust,corporate governance and self-esteem before Orally-fixated. If you don't....I'm not gonna feelin sorry for you. Maybe Lithium and Barbiturates will do. Ps: You don't have to lecture about Bonds and economic spins its all in the Net. Its an easy topic doesn't took an hour to digest unlike Toxicology, see what I mean? Trust men and they will be true to you:treat them greatly and they will show themselves great!!