Notice to the Participants of BDO Peso Bond Fund

 

Deferment of the Conversion of BDO Peso Bond Fund to a Multi-Class Fund

 

January 14, 2022

 

We wish to inform all outstanding participants of BDO Peso Bond Fund that we are moving the effectivity date of the fund conversion to February 11, 2022 from January 21, 2022.

 

If the Fund remains suitable to your investment profile, there is no need for you to do anything. Your decision to remain invested in the Fund will be deemed as your conformity with the relevant amendments related to the Fund’s conversion to a multi-class fund. If this is not the case or you are not amenable with the above, you may redeem your UITF investments and/or unsubscribe from your Easy Investment Plan (EIP) in BDO Peso Bond Fund before February 11, 2022 without early redemption charges and/or non-completion fees.  You may also get in touch with your Trust Marketing Officer and/or UITF servicing branch to discuss other BDO UITFs/investment products that may better match your requirements.

 

The deferment of fund conversion is in view of the surge in COVID-19 cases these past few weeks. BDO Trust has put its operations under a skeletal workforce to maintain proper health and safety protocols. As soon as the number of COVID-19 cases starts to decline, we shall prioritize establishing normal operations.

 

Thank you for your continued trust and business.

 

 

 

Conversion of BDO Peso Bond Fund to a Multi-Class Fund

 

December 6, 2021

 

Dear Valued Investor,

 

In line with BDO Trust’s continuing efforts to provide a distinctive array of Unit Investment Trust Funds (UITFs) responsive to our clients’ needs, we would like to inform you that we shall be converting the BDO Peso Bond Fund (the “Fund”) to a multi-class fund effective 21 January 2022 (“effectivity date”).

 

A multi-class fund is a UITF structure which has more than one class of units in the fund and is invested in the same pool of securities and the same portfolio, investment objectives and policies. Each unit class of a multi-class fund may have differentiated features per unit class, such as eligible investors, minimum investment amounts, holding period, trust fee rates, etc.

The BDO Peso Bond Fund, upon its conversion to a multi-class UITF, shall be composed of two (2) unit classes, namely: (1) Retail Unit Class (R); and (2) Merit Unit Class (I). As an existing participant of BDO Peso Bond Fund, your investments in the Fund shall automatically be classified as investments in the Fund’s Retail Unit Class (R) on effectivity date. The key features of the Fund such as minimum investment amounts, holding period, trust fee rate, dealing cut-off time and redemption settlement schedule shall remain the same. On the other hand, Merit Unit Class (I) shall initially be open to participants of BDO MERIT Fund, which shall be consolidated into the Fund on the same date. Please refer to Annex A for the comparative key features of the BDO Peso Bond Fund and the BDO Peso Bond Fund (Multi-Class UITF).

The conversion to a multi-class fund is deemed to provide better value to investors due to economies of scale. Please note that this change poses no effect on the investment strategy of the Fund. The Fund will continue to be managed within its current investment objective and policies, which is primarily aimed for capital preservation and income generation by investing in short to longer term bonds and other similar fixed income securities.

 

We advise you to evaluate this change carefully. If the Fund remains suitable to your investment profile, there is no need for you to do anything. Your decision to remain invested in the Fund will be deemed as your conformity with the relevant amendments related to the Fund’s conversion to a multi-class fund. If this is not the case or you are not amenable with the above, you may redeem your UITF investments and/or unsubscribe from your Easy Investment Plan (EIP) in BDO Peso Bond Fund before 21 January 2022 without early redemption charges and/or non-completion fees.  You may also get in touch with your Trust Marketing Officer and/or UITF servicing branch to discuss other BDO UITFs/investment products that may better match your requirements.

 

For clarifications, please feel free to call us at (02) 8631-8000 during banking hours or email us at trustcustomercare@bdo.com.ph.

 

Thank you for your continued trust and business.

 

BDO Unibank, Inc. – Trust and Investments Group

As Trustee of BDO Peso Bond Fund

 

 

ANNEX A

 

Comparative Key Features of

BDO Peso Bond Fund and BDO Peso Bond Fund (Multi-Class UITF)

 

Features

FROM

TO

Fund Name

BDO Peso Bond Fund

BDO Peso Bond Fund

(A Multi-Class Unit Investment Trust Fund)

Unit Class

Not Applicable

Retail Unit Class (R)

Merit Unit Class (I)

Client Suitability

Individual and corporate investors with moderate risk appetite

Individual and corporate investors with moderate risk appetite

Retirement Plans with moderate risk appetite

Minimum initial / additional participation

PhP 10,000

PhP 10,000

PhP 1,000

Minimum maintaining participation

PhP 10,000

PhP 10,000

None

Trust Fee Rate

1.00% p.a.

1.00% p.a.

0.825% p.a.

Minimum Holding Period

30 calendar days

30 calendar days

None

Early Redemption Fee

0.50% of original

participation amount

0.50% of original participation amount

None

Partial Redemption

Not Allowed

Not Allowed

Allowed

Easy Investment Plan Feature

Yes

Yes

None

Special Expenses

Custodianship Fees

External Audit Fees

Custodianship Fees

External Audit Fees

Fund Administration Fees

Custodianship Fees External Audit Fees

Fund Administration Fees

Common Key Features

Fund Type

Medium Term Bond Fund

Investment Objective

To achieve capital preservation and income generation by investing in short to longer term bonds and other similar fixed income securities

Recommended Investment Time Horizon

In order to minimize risks and maximize earning potential, participants are recommended to stay invested in the Fund for at least three (3) years.

Dealing Period

Up to 2:30 p.m. of any banking day

(or such other earlier cut-off time being observed during the period of Enhanced/Modified/General Community Quarantine)

Settlement Period

One (1) banking day after notice of redemption is received

NAVPU Availability

Every trading day at 7:30 p.m.