FIXED INCOME SECURITIES
- Government Securities
There are direct and unconditional borrowings of the Republic of the Philippines which are virtually risk-free. They may either be in the form of Treasury Bills, Fixed Income Treasury Notes or Retail Treasury Bonds.
- Corporate Bonds
Corporate Bonds are debt obligations issued by a corporation. They may either be secured or unsecured. Collateral used for secured debt includes but are not limited to real property, machinery, equipment, accounts receivable, stocks, bonds or notes. If the debt is unsecured, the bonds are known as debentures.
Holders have a prior legal claim over common and preferred stockholders as to both income and assets of the corporation for the principal and interest due them and may have prior claim over other creditors if liens or mortgages are involved.
They have yields usually higher than government securities due to credit risk.
- Republic of the Philippines Foreign Currency Denominated Bonds (ROPs)
There are direct and unconditional borrowings of the Republic of the Philippines in foreign currency (usually USD) which are virtually risk-free.
PRIVATE PLACEMENTS/CORPORATE NOTES
A private placement is a direct private offering of securities to a limited number of sophisticated investors. They may be issued as debt, equity and hybrid securities.
Mutual Funds are structured financial products overseen by professional fund managers who manage and allocate a pool of money collected from investors to invest in securities like stocks, bonds, money market instruments, and other assets to produce capital gains or income.
Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds, and other securities.
UNIT INVESTMENT TRUST FUNDS
Unit Investment Trust Funds (UITFs) are open-ended pooled trust funds denominated in pesos or any acceptable currency, which is operated and administered by a fund manager and made available by participation. Investors can freely join or withdraw their participation in the fund as allowed in the UITF Plan Rules.
1. Stocks/Equity securities are shares of stock of a corporation which may represent different kinds of rights in the company. Below are the types of equity securities that may be issued by a corporation:
2. Real Estate Investment Trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs may own various types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and commercial forests.