Notice to the Participants of BDO Global Equity Select Feeder Fund

06 April 2021

 

Consolidation of BDO Global Equity Select Feeder Fund into

BDO Global Equity Index Feeder Fund

 

Dear Valued Investor,

 

In line with BDO’s continuing efforts to provide a distinctive array of Unit Investment Trust Funds (UITFs) responsive to clients’ needs, we would like to inform you that on 08 June 2021, the BDO Global Equity Select Feeder Fund (GESFF) shall be consolidated into BDO Global Equity Index Feeder Fund (GEIFF).  This consolidation has been approved by the BDO Board of Directors in its meeting held last 24 February 2021. 

 

With the BDO GEIFF, an index-tracker fund as the surviving fund, you will get the same access to a diversified portfolio of global companies that tracks the return of the MSCI World Index.  In terms of fund performance, BDO GEIFF generated better returns than BDO GESFF over various periods.  Moreover, BDO GESFF’s performance has lagged its benchmark especially over the past year and has not delivered the outperformance expected of actively-managed target funds.  For the past year, BDO GEIFF also provided higher reward-to-risk efficiency relative to benchmark compared to BDO GESFF, as shown by their respective information ratios (please refer to Annex A for the comparative key features of the Funds).  Also, BDO GESFF participants will benefit from the lower trust fee rate of BDO GEIFF (from 1% to 0.50% p.a.).  Similar with the BDO GESFF, the BDO GEIFF is suitable for investors with aggressive risk appetite.

 

We advise you to carefully evaluate the foregoing. If you are amenable to this consolidation and find that the BDO GEIFF is suitable to your investment profile, there is no need for you to do anything. Your decision to remain invested in BDO GESFF until 07 June 2021 will be deemed as your conformity to the consolidation and your investments will be subject to the following:

 

1. Your outstanding participation in the BDO GESFF shall be pre-ordered for redemption on 07 June 2021 (“Redemption Pre-Order”).  The proceeds from the BDO GESFF shall be computed based on the Net Asset Value per unit (NAVpu) on 08 June 2021 (“Redemption Valuation Date”) or the consolidation date.  Consequently, the redemption proceeds from BDO GESFF shall be pre-ordered for subscription in BDO GEIFF on 08 June 2021 (“Subscription Pre-Order”).  The equivalent units of participation in BDO GEIFF shall be determined based on the applicable NAVpu on 09 June 2021 (“Subscription Valuation Date”), the day after consolidation date. To illustrate:

 

 

Note:  Redemptions/subscriptions from any BDO Feeder Fund are subject to a one (1) day advance notice

 

 

2. As a result, your BDO GESFF COP/s shall be considered redeemed and will be replaced by BDO GEIFF COP/s. You may obtain your BDO GEIFF COP/s at your UITF servicing branch (i.e. the branch where you originally booked your UITF transaction) only upon surrender of the original BDO GESFF COP/s. For transactions booked via BDO Invest Online, your COP/s will be available for viewing online.

 

If you are not in conformity with the above, you may redeem your UITF investments in BDO GESFF before 07 June 2021 without early redemption charges.  You may get in touch with your 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 the following numbers: 8840-7000 locals 37026, 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.

 

 

Sincerely,

BDO Trust and Investments Group

 

 

Annex: Comparative Key Features of BDO GESFF and BDO GEIFF