Duration 5-7 days

 

Overview

This training course is designed to help participants effectively prepare for the UITF Certification Program (UCP) examination by strengthening their understanding of exam-critical concepts, regulatory requirements, and technical calculations. It focuses on reinforcing key areas across all modules, ensuring participants can confidently apply investment principles, understand UITF structures, and comply with BSP regulations in an exam context.

 

The program emphasizes high-impact topics that are frequently tested, along with guided reviews and practical reinforcement to improve accuracy and retention. Participants will develop the ability to interpret and solve calculation-based questions, recognize common exam patterns, and avoid typical mistakes.

 

By the end of the training, participants will be well-equipped to meet the required 75% passing average, with no module score below the minimum threshold, and to successfully achieve certification as UITF Salespersons.

 

Objectives 

• Prepare participants to pass the UITF Certification Exam
• Enable participants to become accredited UITF Salespersons for life
• Ensure understanding of exam-heavy concepts, regulatory requirements, and technical calculations
• Achieve the required passing criteria of the certification exam

 

Target Audience 

• All personnel involved in the sales of Unit Investment Trust Funds (UITFs)

 

Prerequisites

• Basic understanding of financial products (e.g., deposits, bonds, equities)
• Experience or involvement in UITF sales, investment advisory, or banking operations
• Familiarity with client interaction or financial product selling processes
• Prior exposure to UITF concepts or participation in UITF-related training (recommended but not required)
• Basic numerical skills for interpreting financial metrics and ratios

 

Course Outline

 Module 1: Fundamentals of Investments: Understanding basic investment principles, risk-return trade-offs, and asset classes. 

• Defining Investment: The act of purchasing future cash flow to compensate for time, inflation, and risk.
• The Risk-Reward Rule: Higher potential income is always accompanied by a higher probability of loss.
• Asset Classes:
  • Cash/Money Market: Safest, high certainty, but high inflation risk.
  • Fixed Income (Bonds): Debt instruments; slow, steady, predictable returns.
  • Equities (Stocks): Ownership in a company; high volatility but higher long-run average returns.
• Risk Types: Deep dive into Credit, Liquidity, Interest Rate (inverse to bond prices), Market, and Sovereign risks.
• Liquidation Hierarchy: Secured Creditors, Unsecured Creditors, Subordinated Debt, Preferred Shareholders, Common Shareholders

 

Module 2: UITF Products: Mastering the technical structure of UITFs, valuation (NAVPU), and performance measurement.

• Trust Principles: Understanding the roles of the Trustor (investor), Trustee (bank), and Beneficiary
• UITF Basics: Open-ended pooled trust funds governed by a Declaration of Trust (DOT)
• New Structures:
  • Feeder Funds: Invests at least 90% in a single target fund
  • Fund-of-Funds: Invests at least 90% in multiple target funds
  • Multi-Class: Single pool of assets with different fee structures/minimums
  • Distributing Funds: Pays out “unit income” instead of cash
• Valuation Math:
  • NAVPU
  • Sharpe Ratio: Measures excess return per unit of risk (Higher is better)
  • Information Ratio: Measures outperformance against a benchmark

 

Module 3: Regulations & Operations: Complying with BSP Circulars and operational safeguards. 

• Allowable Investments: Philippine/Foreign government securities, exchange-listed securities, and BSP-approved target funds
• Exposure Limits: Combined exposure to a single entity must not exceed 15% of the UITF’s market value
• Required Documentation:
  1. Customer Suitability Assessment (CSA)
  2. Participating Trust Agreement (PTA)
  3. Risk Disclosure Statement (RDS)
  4. Key Information and Investment Disclosure Statement (KIIDS)
• Cooling-Off Period: At least 2 banking days for natural persons to cancel agreements for instruments with terms

 

Module 4: Sales Process: Professionalizing the offer and matching clients to products. 

• The S.H.O.R.E. Framework: Assessing Size, Horizon, Objective, Risk Profile, and Experience
• Client Classifications:
  • Conservative: Preservation of capital; minimal risk
  • Moderate: Willing to accept risk for returns higher than deposits
  • Aggressive: High risk for long-term capital appreciation
• Sales “Don’ts”: Never market UITFs as deposit products and never guarantee rates of return

 

 Module 5: Code of Conduct & Ethics: Upholding the integrity of the trust and fund management profession. 

• Cardinal Principles: Prudent administration, undivided loyalty, non-delegation of responsibilities, and arm’s length transactions
• Chinese Wall: Functional barriers between a Trust Entity and the parent bank to avoid conflicts of interest
• Fidelity: The core principle of all trust relationships—putting the client’s interest above the bank
• Best Execution: Taking reasonable steps to execute client orders on the best available terms

 

Program Overview & Exam Mechanics 

• The Exam: 100 multiple-choice questions (20 per module)
• Passing Criteria: 75% simple average with no module score below 60%
• Note: “Conditional Pass” rule—if they get 75% overall but one module is below 60%, they only retake that specific module