BANK’S COPY
TMP-LG-35-10 Union Bank of the Philippines - TRUST & INVESTMENT SERVICES GROUP
PARTICIPATING TRUST AGREEMENT
KNOW ALL MEN BY THESE PRESENTS :
This Agreement, made and executed this _______ day of _____________, 200___ by and between :
Name of Trustor : _________________________________
Address : _________________________________
_________________________________
hereinafter referred to as the “TRUSTOR”
- and -
Union Bank of the Philippines a Filipino corporation duly organized and existing under and by virtue of the laws of the Republic of the
Philippines, and authorized to perform trust and fiduciary functions, with principal office address at 23/F UnionBank Plaza Meralco
Avenue, corner Sapphire and Onyx Roads, Ortigas Center, Pasig City, hereinafter referred to as the “TRUSTEE” ;
WITNESSETH: That –
WHEREAS, the TRUSTOR/ desire/s to participate in the UnionBank Peso Short Term Fixed Income Portfolio (the “Fund”), a unit
investment trust fund established and administered by the TRUSTEE under and subject to the terms of a Declaration of Trust (the
“Plan Rules”) approved by the TRUSTEE’s Board of Directors and by the Bangko Sentral Ng Pilipinas, as may be amended from time
to time in accordance with the Plan Rules and existing regulations;
NOW THEREFORE, the parties hereto hereby agree as follows:
1. Participation and Redemption - Participation in the Fund and redemption of such participation shall be allowed only on the basis of the
net asset value of each participation unit (the “OFFER NAVpu”) and each redemption unit (the “BID NAVpu”) respectively, determined
in accordance with the Plan Rules. The TRUSTOR’s investment in the Fund shall be expressed in terms of number of units of
participation as appearing in the TRUSTOR’s Confirmation Notice.
As his/her participation, the TRUSTOR/s shall transfer, convey and pay unto the TRUSTEE, in Philippine Pesos, the amount
representing the value of the units indicated in the TRUSTOR’s Confirmation Notice.
2. Client Suitability– Prior to the acceptance of participation, the TRUSTEE shall perform client suitability, through a Client Suitability
Assessment form which shall be acknowledged and signed by the TRUSTOR.
3. Administration and Investment and of Fund - The Fund, which is the pool of trust funds from the participating trustors, shall be
managed, administered and invested by the TRUSTEE under the operation of the Plan Rules.
4. Disclosure of Investment Outlets – The TRUSTEE shall make available for review by the participant, a list of prospective and
outstanding investment outlets for the Fund, which list shall be updated quarterly.
5. Disclosure of Risks – Prior to the signing of the Agreement, the TRUSTOR shall have read and acknowledged the Risk Disclosure
Statement.
6. Compensation – As compensation for the TRUSTEE’s services, it shall be entitled to Trustee fees as provided for in the Plan Rules.
7. Liability of TRUSTEE – Save that attributable to the TRUSTEE’s fraud, bad faith, gross willful negligence, the TRUSTEE shall not be
liable for any loss or depreciation in the value of the Trust Fund or in the value of the TRUSTOR’s units of participation in the
UnionBank Peso Short Term Fixed Income Portfolio arising from any act done by the TRUSTEE pursuant to the terms hereof and
thereof. Neither shall the TRUSTEE be liable for refraining to do any act where such inaction in the good faith judgment of the
TRUSTEE is necessary and appropriate for the proper and advantageous administration and management of the Trust Fund.
8. Term of Agreement – This Agreement shall continue and remain in force until the redemption of all the TRUSTOR’s units of
participation or upon termination of the Fund in accordance with the Plan Rules or with laws or regulations then existing.
9. Reference Documents – Incorporated herein by reference are the terms, conditions, rules and regulations in the Plan Rules, Client
Suitability Assessment form, Risk Disclosure Statement, and the Confirmation Notice to be issued pursuant hereto.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands.
The Trustor acknowledges that this contract is a trust agreement NOT a deposit account or an obligation of, or guaranteed, or insured by
UNIONBANK OF THE PHILIPPINES or its affiliates or subsidiaries, and therefore is not insured or governed by the Philippine Deposit
Insurance Corporation (PDIC). Any income or loss arising from market fluctuations and price volatility of the securities held by the Fund, even if
invested in government securities, is for the account of the investor. As such, units of participation of the investor in the UITF, when redeemed,
may be worth more or be worth less than his/her initial investment/contributions. Historical performance, when presented, is purely for reference
purposes and not a guarantee of similar future results. The Trustee is not liable for losses, unless upon willful default, bad faith or gross
negligence.
__________________________________ ________________________________
(Trustor) UBP UITF Marketing Personnel
CLIENT’S COPY
TMP-LG-35-10 Union Bank of the Philippines - TRUST & INVESTMENT SERVICES GROUP
PARTICIPATING TRUST AGREEMENT
KNOW ALL MEN BY THESE PRESENTS :
This Agreement, made and executed this _______ day of _____________, 200___ by and between :
Name of Trustor : _________________________________
Address : _________________________________
_________________________________
hereinafter referred to as the “TRUSTOR”
- and -
Union Bank of the Philippines a Filipino corporation duly organized and existing under and by virtue of the laws of the Republic of the
Philippines, and authorized to perform trust and fiduciary functions, with principal office address at 23/F UnionBank Plaza Meralco
Avenue, corner Sapphire and Onyx Roads, Ortigas Center, Pasig City, hereinafter referred to as the “TRUSTEE” ;
WITNESSETH: That –
WHEREAS, the TRUSTOR/ desire/s to participate in the UnionBank Peso Short Term Fixed Income Portfolio (the “Fund”), a unit
investment trust fund established and administered by the TRUSTEE under and subject to the terms of a Declaration of Trust (the
“Plan Rules”) approved by the TRUSTEE’s Board of Directors and by the Bangko Sentral Ng Pilipinas, as may be amended from time
to time in accordance with the Plan Rules and existing regulations;
NOW THEREFORE, the parties hereto hereby agree as follows:
1. Participation and Redemption - Participation in the Fund and redemption of such participation shall be allowed only on the basis of the
net asset value of each participation unit (the “OFFER NAVpu”) and each redemption unit (the “BID NAVpu”) respectively, determined
in accordance with the Plan Rules. The TRUSTOR’s investment in the Fund shall be expressed in terms of number of units of
participation as appearing in the TRUSTOR’s Confirmation Notice.
As his/her participation, the TRUSTOR/s shall transfer, convey and pay unto the TRUSTEE, in Philippine Pesos, the amount
representing the value of the units indicated in the TRUSTOR’s Confirmation Notice.
2. Client Suitability– Prior to the acceptance of participation, the TRUSTEE shall perform client suitability, through a Client Suitability
Assessment form which shall be acknowledged and signed by the TRUSTOR.
3. Administration and Investment and of Fund - The Fund, which is the pool of trust funds from the participating trustors, shall be
managed, administered and invested by the TRUSTEE under the operation of the Plan Rules.
4. Disclosure of Investment Outlets – The TRUSTEE shall make available for review by the participant, a list of prospective and
outstanding investment outlets for the Fund, which list shall be updated quarterly.
5. Disclosure of Risks – Prior to the signing of the Agreement, the TRUSTOR shall have read and acknowledged the Risk Disclosure
Statement.
6. Compensation – As compensation for the TRUSTEE’s services, it shall be entitled to Trustee fees as provided for in the Plan Rules.
7. Liability of TRUSTEE – Save that attributable to the TRUSTEE’s fraud, bad faith, gross willful negligence, the TRUSTEE shall not be
liable for any loss or depreciation in the value of the Trust Fund or in the value of the TRUSTOR’s units of participation in the
UnionBank Peso Short Term Fixed Income Portfolio arising from any act done by the TRUSTEE pursuant to the terms hereof and
thereof. Neither shall the TRUSTEE be liable for refraining to do any act where such inaction in the good faith judgment of the
TRUSTEE is necessary and appropriate for the proper and advantageous administration and management of the Trust Fund.
8. Term of Agreement – This Agreement shall continue and remain in force until the redemption of all the TRUSTOR’s units of
participation or upon termination of the Fund in accordance with the Plan Rules or with laws or regulations then existing.
9. Reference Documents – Incorporated herein by reference are the terms, conditions, rules and regulations in the Plan Rules, Client
Suitability Assessment form, Risk Disclosure Statement, and the Confirmation Notice to be issued pursuant hereto.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands.
The Trustor acknowledges that this contract is a trust agreement NOT a deposit account or an obligation of, or guaranteed, or insured by
UNIONBANK OF THE PHILIPPINES or its affiliates or subsidiaries, and therefore is not insured or governed by the Philippine Deposit
Insurance Corporation (PDIC). Any income or loss arising from market fluctuations and price volatility of the securities held by the Fund, even if
invested in government securities, is for the account of the investor. As such, units of participation of the investor in the UITF, when redeemed,
may be worth more or be worth less than his/her initial investment/contributions. Historical performance, when presented, is purely for reference
purposes and not a guarantee of similar future results. The Trustee is not liable for losses, unless upon willful default, bad faith or gross
negligence.
__________________________________ ________________________________
(Trustor) UBP UITF Marketing Personnel
TMP-TY-36-14
CLIENT SUITABILITY ASSESSMENT FORM (CORPORATE)
This Client Suitability Assessment (CSA) Form will guide you in choosing investment outlets that are best suited to your investments objectives, appetite, preference, and
experience. The information you will provide will form the basis of our suggestions. It is important to provide accurate and complete information to ensure appropriate
solutions are discussed.
COMPANY DATA
COMPANY NAME ACCOUNT NUMBER DATE UNDERTAKEN
FINANCIAL AND INVESTMENT PROFILE
APPROXIMATE LIQUID FUNDS CURRENCY OF INVESTMENTS HELD (Select all that apply)
[1] Less than Php 5 Million [1] Philippine Peso [3] Hong Kong Dollars
[2] Php 5 Million to Php 50 Million [2] US Dollars [3] Singaporean Dollars
[3] Php 50 Million to Php 100 Million [3] Euros [3] Chinese Yuan
[4] Php 100 Million to Php 500 Million [3] UK Pounds [3] Others:
[5] More than Php 500 Million [3] Australian Dollars
How do you percieve the company's level of investment experience? In what securities has the company / fund invested before?
[1] No experience [1] In bank deposits, BSP SDAs, and money market placements
[2] Fairly experienced [2] In medium to long term government securities
[3] Very experienced [3] In mutual funds, UITFs, and corporate bonds
[4] In domestic and global sotcks and in foreign currency
INVESTMENT OBJECTIVES
What statement best defines your investment objective? How would you describe your institution's investment horizon and
liquidity requirement?
[1] To prevent loss of principal of my investments and generate interest income.
Low but positive returns are preferred. Losses should be avoided. [1] Less than 1 year.
The funds are the main source of liquidity.
[2] To preserve the real value of my investments and generate interest income.
Minimal risk can be taken in order to earn higher returns than regular deposits. [2] 1 to 3 years
The funds may be used in the medium-term.
[3] To grow my investments from a combination of interest income and capital appreciation
Moderate risk can be tolerated in exchange for some capital appreciation. [3] 3 to 5 years
The funds are for medium to long-term needs.
[4] To grow my investments at significant capital appreciation.
There is tolerance for large negative returns, for higher volatility and for possible loss of [4] Greater than 5 years
investment. The funds are for long-term investment.
RISK APPETITE
What set of portfolio returns would the company / fund be most comfortable with? (Returns on the graphs are for illustration only. They are neither actual nor expected returns)
[1] [2] [3]
There are relatively minimal fluctuations in the There are moderate fluctuations in the portfolio's returns There are large fluctiations in the portfolio's returns. The
portfolio's returns. The portfolio produces steady The portfolio produces modest interest income and portfolio may achieve substantial gains but with risk of
yields. capital appreciation. potential loss.
What would be the company / fund's preferred asset allocation?
[1] 100% in liquid investments withdrawable anytime. [4] A balanced portion in fixed-income securities and equities.
[2] 100% in fixed-income securities [5] A small portion in fixed-income and a large portion in equities.
[3] A large portion in fixed-income securities and a portion in equities [6] 100% in equities.
CLIENT CONFORME
My signature below indicates that:
* I understand that this Client Suitability Assessment is used as a guide for the Trust marketing personnel / account officer to present or recommend investments alternatives, which
may include UnionBank's UITFs.
* I understand that Trust products are not deposit accounts, or an obligation of, or guaranteed, or insured by the Trust Entity or its affiliates or subsidiaries. I also acknowledge that
these are not insured or governed by PDIC.
* I will formally notify the Trust marketing personnel / account officer of changes to my personal and/or financial situation that would change my risk profile. I acknowledge that the
Client Suitability Assessment is subject to review at least every 3 years.
* The bank's Trust marketing personnel / account officer have explained and discussed to me in detail the results of my Client Suitability Assessment, the basis of their
recommendation, and the terms and conditions of the recommended investment outlet.
TOTAL SCORE: RISK PROFILE:
CLIENT
Signature over Printed Name DATE
FOR TRUST MARKETING USE ONLY
I have explained to you in detail and discussed with you the following:
[1] results of the Client Suitability Assessment
[2] basis of our recommendation
[3] terms and conditions of the recommended investment outlet
TRUST MARKETING PERSONNEL
Signature over Printed Name DATE
Distribution: Original - Branch; Duplicate - Client
The Trust and Investment Services Group of UnionBank of the Philipines shall keep the CSA form and information herein strictly confidential. In case the circumstances or preference of the investor changes, the
client should request that another CSA be undertaken in order to evaluate client's risk profile given the changes in risk appetite, investment objectives and in any financial circumstances that would have significant
effect in the client's ability or willingness to take risk.
TMP-TY-34-14
UnionBank of the Philippines - TRUST & INVESTMENT SERVICES GROUP
RISK DISCLOSURE STATEMENT
Prior to making an investment, Union Bank of the Philippines - Trust and Investment Services Group (UBP-TISG) is hereby informing you of the nature of the Unit Investment
Trust Funds (UITFs) / Trust / Other Fiduciary / Investment Management Accounts and the risks involved in investing therein. As investments generally carry different degrees of
risk, it is necessary that before you make any investment, you should have:
1. fully understood the nature of the investment in UITFs / Trust / Other Fiduciary / Investment Management Accounts and the extent of your exposure to risks;
2. read this Risk Disclosure Statement completely; and
3. independently determined that the investment in any UITFs / Trust / Other Fiduciary / Investment Management Accounts is appropriate for you.
Identified below are the risks that you will be exposed to when investing. The level of risk will depend on the type of underlying assets in the portfolio. UITFs / Trust / Other
Fiduciary / Investment Management Accounts neither provide guaranteed returns nor are insured by the Philippine Deposit Insurance Corporation (PDIC).
Investing in the UITFs in particular involve risks because the value of your investment is based on the Net Asset Value per unit (NAVpu) of the Fund which uses a marked-to-
market valuation and therefore may fluctuate daily. The NAVpu is computed by dividing the Net Asset Value (NAV) of the Fund by the number of outstanding units. The NAV is
derived from the summation of the market value of the underlying securities of the Fund plus accrued interest income less liabilities and qualified expenses.
Your investment in any of the UBP-TISG UITFs / Trust / Other Fiduciary / Investment Management Accounts exposes you to the various types of risks enumerated and defined
hereunder:
Interest Rate Risk. This is the possibility for an investor to experience losses due to As these happen, particularly for UITFs, the Fund's NAVPU will be affected by a
changes in interest rates. The purchase and sale of a debt instrument may result in decline in value.
profit or loss because the value of a debt instrument changes inversely with prevailing
interest rates. Reinvestment Risks. This is the risk associated with the possibility of having lower
returns or earnings when maturing funds or the interest earnings of funds are
The UITFs / Trust / Other Fiduciary / Investment Management Account's portfolio, reinvested.
being marked-to-market, is affected by changes in interest rates thereby affecting the
value of fixed income investments such as bonds. Interest rate changes affect fixed Investors who redeem and realize their gains run the risk of reinvesting their funds in
income securities inversely, i.e. as interest rates rise, bond prices fall and when an alternative investment outlet with lower yields. Similarly, the UBP-TISG Fund /
interest rates decline, bond prices rise. As the prices of bonds in a portfolio adjust to a Portfolio Manager is faced with the risk of not being able to find good or better
rise in interest rates, the portfolio's market value may decline. alternative investment outlets as some of the securities in the fund matures.
Market/Price Risk. This is the possibility for an investor to experience losses due to
In case of a foreign-currency denominated UITF / portfolio or a peso denominated
changes in market prices of securities (e.g. stocks, bonds). It is the exposure to the
UITF / portfolio allowed to invest in securities denominated in currencies other than its
uncertain market value of a portfolio due to price fluctuations.
base currency, the UITF or portfolio is also exposed to the following risks:
It is the risk of the UITFs / Trust / Other Fiduciary / Investment Management Account Foreign Exchange Risk. This is the possibility for an investor to experience losses
to lose value due to a decline in securities prices, which may sometimes happen due to fluctuations in foreign exchange rates. The exchange rates depend upon a
rapidly or unpredictably. The value of investments fluctuates over a given time period variety of global and local factors, e.g., interest rates, economic performance, and
because of general market conditions, economic changes or other events that impact political developments.
large portions of the market such as political events, natural calamities, etc. As a
result, particularly for UITFs, the Net Asset Value per Unit (NAVPU) may increase to It is the risk of the UITF or portfolio to currency fluctuations when the value of
make profit or decrease to incur loss. investments in securities denominated in currencies other than the base currency of
the UITF or portfolio depreciates. Conversely, it is the risk of the UITF or portfolio to
Liquidity Risk. This is the possibility for an investor to experience losses due to the
lose value when the base currency of the UITF or portfolio appreciates. For UITFs in
inability to sell or convert assets into cash immediately or in instances where
particular, the net asset value per unit (NAVpu) of a peso-denominated UITF invested
conversion to cash is possible but at a loss. These may be caused by different
in foreign currency-denominated securities may decrease to incur loss when the peso
reasons such as trading in securities with small or few outstanding issues, absence of
appreciates.
buyers, limited buy/sell activity or underdeveloped capital market.
Country Risk. This is the possibility for an investor to experience losses arising from
Liquidity risk occurs when certain securities in the UITFs / Trust / Other Fiduciary / investments in securities issued by/ in foreign countries due to the political, economic
Investment Management Account portfolio may be difficult or impossible to sell at a and social structures of such countries. There are risks in foreign investments due to
particular time which may prevent the redemption of investments until its assets can the possible internal and external conflicts, currency devaluations, foreign ownership
be converted to cash. Even government securities which are the most liquid of fixed limitations and tax increases of the foreign country involved which are difficult to
income securities may be subjected to liquidity risk particularly if a sizeable volume is predict but must be taken into account in making such investments.
involved.
Likewise, brokerage commissions and other fees may be higher in foreign securities.
Credit Risk/Default Risk. This is the possibility for an investor to experience losses
Government supervision and regulation of foreign stock exchanges, currency markets,
due to a borrower's failure to pay principal and/or interest in a timely manner on
trading systems and brokers may be less than those in the Philippines. The
instruments such as bonds, loans, or other forms of security which the borrower
procedures and rules governing foreign transactions and custody of securities may
issued. This inability of the borrower to make good on its financial obligations may
also involve delays in payment, delivery or recovery of investments.
have resulted from adverse changes in its financial condition thus, lowering credit
quality of the security, and consequently lowering the price (market/price risk) which Other Risks. Your participation in the UITF or investment in portfolio may be further
contributes to the difficulty in selling such security. It also includes risk on a exposed to the risk of any actual or potential conflicts of interest in the handling of in-
counterparty (a party the Fund / Portfolio Manager trades with) defaulting on a house or related party transactions by UBP-TISG. These transactions may include
contract to deliver its obligation either in cash or securities. own-bank deposits; purchase of own-institution or affiliate obligations (stocks,
mortgages); purchase of assets from or sales to own institution, directors, officers,
This is the risk of losing value in the UITFs / Trust / Other Fiduciary / Investment subsidiaries, affiliates or other related interests/parties; or purchases or sales between
Management Account portfolio in the event the borrower defaults on his obligation or fiduciary/managed accounts.
in the case of counterparty, when it fails to deliver on the agreed trade. This decline in
the value of the portfolio happens because the default/failure would make the price of
the security go down and may make the security difficult to sell.
I/WE HAVE COMPLETELY READ AND FULLY UNDERSTOOD THIS RISK DISCLOSURE STATEMENT AND THE SAME WAS CLEARLY EXPLAINED TO ME/US BY A UNION
BANK MARKETING PERSONNEL BEFORE I/WE AFFIXED MY/OUR SIGNATURE/S HEREIN. I/WE HEREBY VOLUNTARILY AND WILLINGLY AGREE TO COMPLY WITH
ANY AND ALL LAWS, REGULATIONS, THE PLAN RULES, TERMS AND CONDITIONS GOVERNING MY/OUR INVESTMENT IN THE UnionBank UITFs.
Signature over Printed Name Date
I acknowledge that I have (1) advised the client to read this Risk Disclosure Statement, (2) encouraged the client to ask questions on matters contained in this Risk Disclosure
Statement, and (3) fully explained the same to the client.
Signature over Printed Name / Position Date
Distirbution: Original - Branch; Duplicate - Client
TMP-TY-39-12
WAIVER TO INVEST IN SPECIFIC INSTRUMENTS
TO BE ACCOMPLISHED ONLY BY CLIENTS WHO WANT SPECIFIC INVESTMENTS THAT ARE NOT CONSISTENT WITH THE RESULTS OF THE CSA
I hereby exercise my option to invest in instruments not consistent with the results of the Client Suitability Assessment.
By signing below, I acknowledge the following:
* I do not agree with or accept the recommendation of the of the Trust Marketing Personnel on the appropriateness of the investment
products or portfolio based on the Client Suitability Assessment profile results.
* I would like to avail of the investment product or portfolio other than which is consistent with the results of the Client Suitability
Assessment.
* I fully understand and is willing to take the risks incidental to the investment product or portfolio to be availed of.
* I indemnify and hold harmless the personnel of Unionbank of the Philippines, its directors, officers and employees from any claim, suit,
actions, loss, damage or expense which I may incur as a result of my decision to invest in products / portfolio with higher risks.
* I note the result of the Client Suitability Assessment, which classifies me as a(n) _____________________________ investor.
Nevertheless, I want to specifically invest in the following investment/service/transaction/product:
a.) _____________________________
b.) _____________________________
c.) _____________________________
* This waiver pertains only to the aformentioned investments/service/transaction/product and is not a request for a re-classification of my
general risk profile.
CLIENT
Signature over Printed Name DATE
FOR TRUST MARKETING USE ONLY
I have explained to you in detail and discussed with you the following:
[1] The increased risks in investing in instruments not according to the results of the Client Suitability Assessment.
[2] The protection you will lose by being re-classified outside the risk profiling process.
TRUST MARKETING PERSONNEL
Signature over Printed Name DATE
Distribution: Original - Branch; Duplicate - Client
CSA Scoring Guide
Score Type of Investor Recommended Product(s)
1-16 Conservative o Deposit Accounts/TDs
17-20 Moderately Conservative o UB Short-term Fixed Income
o UB Philippine Fixed Income
o Intermediate-term Fixed Income
o Long-Term Fixed Income
o Dollar Bond Fund
o Tax-Exempt Fund
o Infinity Prime Fund
21-26 Moderately Aggressive o NA
27 and up Aggressive o Large Capitalization Equity Fund
o Balanced Fund
o Dividend Play Fund
o Philippine Equity Index Tracker
