NOTICE TO THE PARTICIPANTS OF BDO CHINA EQUITY FEEDER FUND

Subject: Switching of the Target Fund

 

Dear Valued Investors,

 

Thank you for investing in the BDO China Equity Feeder Fund (CEFF), a UITF structured as a feeder fund that invests in the ChinaAMC China Focus Fund (the “Target Fund”). As a feeder fund, BSP regulations require that the Fund’s investment in the Target Fund should not comprise more than 10% of the Target Fund’s Net Asset Value (NAV).

 

As of year-end 2017, BDO CEFF’s investment exposure to the Target Fund was already at 9.10% of the Target Fund’s NAV. Moreover, the Fund is expected to continue to grow this year given the positive outlook in offshore equities markets, particularly in China, and a depreciating peso vs.  the US dollar. Taking into consideration the above circumstances, BDO Trust and Investments Group, as Trustee of BDO CEFF, has recommended to, and was subsequently given approval  by, the Trust Committee to switch BDO CEFF’s Target Fund from ChinaAMC China Focus Fund to BlackRock Global Funds (BGF) China Fund. Please click this link for the comparative key features and risks of the existing and the newly approved Target Fund.

 

The switch to the new Target Fund is deemed necessary to provide the Fund the flexibility to grow in size without breaching the regulatory 10% exposure limit to the Target Fund. Please note, however, that there is no change in the new Target Fund’s investment objectives vis-à-vis the existing Target Fund, thus, no amendment shall be done to the Fund’s Declaration of Trust. In addition, the Fund will not incur any cost as a result of the switch to the new Target Fund.

 

The switching of the Target Fund shall be conducted with due diligence and is expected to be implemented on 20 March 2018. On this date, the Fund's investment in the units of the ChinaAMC China Focus Fund shall be redeemed and the proceeds shall be invested in the shares of BlackRock Global Funds China Fund.

 

We advise you to evaluate the effects of the switch to the new Target Fund 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 such action. If this is not the case or you are not in conformity with the above action, you may get in touch with your branch of account and/or Trust Marketing Officer on or before 20 March 2018 to discuss other BDO UITFs/investment products that may better match your requirements.

 

If you have any queries or clarifications, please feel free to call us at the following numbers: 878-4265, 878-4035 or 878-4244. You may also email us at investments@bdo.com.ph and we will be glad to assist you.

 

Thank you for your continued patronage.

 

 

 

BDO Unibank, Inc. – Trust and Investments Group

as Trustee of BDO China Equity Feeder Fund