Notice to the Participants of BDO Dollar Bond Fund

Deferment of Fund Consolidation

 

 

Update as of 20 May 2020

 

Please be informed that the consolidation of BDO Dollar Bond Fund (DBF) into BDO Medium Term Dollar Bond Fund which was previously deferred from 17 April 2020 to 22 May 2020 will be rescheduled until further notice in view of the modified enhanced community quarantine that is still in effect. We will inform you the final consolidation date in subsequent announcements.

 

If you are amenable to the fund consolidation, no action is required from you. For those who are not in conformity, you may still unsubscribe your Easy Investment Plan (EIP) or redeem your participation in BDO DBF before the final consolidation date. The Fund remains closed for additional subscription in preparation for the fund consolidation.

 

For clarifications, please feel free to call us at the following numbers: 8840-7000 locals 34255, 33832, 34244, 34035, 33446, 37032. You may also email us at investments@bdo.com.ph and we will be glad to assist you.

 

Thank you for your continued trust and business.

 

 

Update as of 13 April 2020

 

We wish to inform all outstanding participants of BDO Dollar Bond Fund (DBF) that we are moving the schedule of the fund consolidation to 22 May 2020 from 17 April 2020.

 

If you are amenable to the fund consolidation, no action is required from you. For those who are not in conformity, you may still unsubscribe your Easy Investment Plan (EIP) for BDO DBF or redeem your participation in BDO DBF until 21 May 2020. The Fund remains closed for additional subscription in preparation for the fund consolidation.

 

The deferment of fund consolidation is in view of the ongoing Enhanced Community Quarantine (ECQ), which has affected our clients’ mobility and has put the operations of BDO Trust under skeletal workforce. As soon as the ECQ is lifted, we shall prioritize establishing normal operations.

 

Thank you for your continued trust and business.

 

 

Consolidation of BDO Dollar Bond Fund into BDO Medium Term Dollar Bond Fund

 

27 February 2020

 

Dear Valued Investors,

 

In line with BDO Trust’s continuing efforts to improve and streamline its suite of Unit Investment Trust Funds (UITFs) to address the needs of our clients, we would like to inform you that the BDO Board of Directors, on its meeting held on 27 February 2020, has approved the consolidation of BDO Dollar Bond Fund (DBF) into BDO Medium Term Dollar Bond Fund (MTDBF), effective 17 April 2020. The DBF shall be closed for additional participation and Easy Investment Plan (EIP) subscription starting 2 March 2020 in order to prepare the Fund for a smooth consolidation process.

The consolidation of your existing investments in the DBF into MTDBF will provide you access to a more diversified investment strategy due to the latter’s flexibility to invest in medium to long term bond investments for better return opportunities. Similar with the DBF, the MTDBF is suitable for investors with moderate risk appetite. Please refer to Annex A for the comparative key features of the Funds.

We advise you to evaluate the consolidation of the above Funds carefully. If you are amenable to this consolidation and that the MTDBF remains suitable to your investment profile, there is no need for you to do anything. Your decision to remain invested in the DBF by 17 April 2020 will be deemed as your conformity with the consolidation and your investments will be subject to the following:

  1. Your outstanding units of participation in the DBF (including EIP contributions), which are evidenced by Confirmation/s of Participation (COP/s) shall be redeemed and the redemption proceeds will be invested in the MTDBF based on the applicable Net Asset Value per unit (NAVpu) on consolidation date.
  2. As a result, your DBF COP/s shall be considered redeemed and will be replaced by MTDBF COP/s. You may obtain your MTDBF COP/s at your UITF servicing branch (i.e. the branch where you originally booked your UITF transaction) only upon surrender of the original DBF COP/s. For transactions booked via BDO Invest Online, your COP/s will be available for viewing online.
  3. No transactions for the DBF will be allowed on the consolidation date of 17 April 2020. The DBF is deemed terminated effective 18 April 2020.

If you are not in conformity with the above implementation, you may get in touch with your UITF servicing branch before 17 April 2020 to discuss other BDO UITFs/investment products that may better match your requirements. Early redemption fees, if any, shall be waived.

For clarifications, please feel free to call us at the following numbers: 8840-7000 locals 34255, 33832, 34244, 34035, 33446, 37032. 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 Dollar Bond Fund

 

Additional Information for EIP Participants of BDO Dollar Bond Fund

  • Prior to consolidation date, you may unsubscribe from your DBF EIP and have the flexibility to enroll your preferred subscription details in MTDBF. EIP non-completion fees and/or early redemption fees, if any, shall be waived.
  • EIP contributions in the DBF not yet covered by a COP will also be redeemed and the redemption proceeds will be invested in MTDBF based on the applicable NAVpu on consolidation date.
  • FOR CLIENTS WITH EIP SUBSCRIPTIONS IN BOTH DBF and MTDBF UNDER THE SAME EIP ACCOUNT: Corresponding units of participation from the redemption of your DBF EIP contributions not yet covered by a COP will be added to your outstanding MTDBF units, if any. Your existing EIP details (e.g. amount, contribution date, frequency etc.) in MTDBF shall be retained, while your subscription details in DBF shall be discontinued.
  • FOR CLIENTS WITH EIP SUBSCRIPTION IN DBF ONLY: An EIP schedule in MTDBF shall automatically be created under the same EIP account following the EIP details (e.g. amount, contribution date, frequency etc.) of your DBF EIP.

 

Features BDO Dollar Bond Fund BDO Medium Term
Dollar Bond Fund
Fund Classification Intermediate Term Bond Fund Medium Term Bond Fund
Risk Profile Moderate Moderate
Investment Objective and
Strategy
The Fund aims for capital preservation and
income generation by investing in higher
yielding short to medium term bond
investments and other similar fixed income
securities. The Fund’s benchmark is the
Markit iBoxx Philippines USD 1-3 Index.
The Fund aims for capital preservation and
income generation over the medium term
by investing in higher yielding medium to
long term bond investments and other
similar fixed income securities. The Fund’s
benchmark is the Markit iBoxx Philippines
USD 3-5 Index.
Minimum Initial / Additional
Investment
USD 500 USD 500
Minimum Holding Period 30 calendar days 30 calendar days
Early Redemption Fee 0.50% of original participation amount 1.00% of original participation amount
Management Fee 0.75% p.a. 1.00% p.a.
Dealing Period Up to 2:30 p.m. of any banking day Up to 2:30 p.m. of any banking day
Settlement Period Three (3) banking days after notice of
redemption is received
Three (3) banking days after notice of
redemption is received
Historical Fund Performance (as of January 31, 2020)

Past 1 Year

Past 3 Years

4.91%

6.70%

7.37%

9.68%

*Past performance is not indicative of future performance.