Notice to the Participants of BDO GS Fund

Deferment of Fund Consolidation

 

 

Update as of 20 May 2020
 

Please be informed that the consolidation of BDO GS Fund into BDO Peso 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 the BDO GS Fund 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 GS Fund 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) or redeem your participation in BDO GS Fund 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 GS Fund into BDO Peso Bond Fund

 

27 February 2020

 

Dear Valued Investors,

 

In line with BDO Trust’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 the BDO Board of Directors, on its meeting held on 27 February 2020, has approved the consolidation of BDO GS Fund (GS Fund) into BDO Peso Bond Fund (PBF), effective 17 April 2020. The GS Fund 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.

 

With the PBF as the surviving fund, you will get access to a more diversified investment strategy due to its flexibility to invest in corporate bonds for better return opportunities. Similar with the GS Fund, the PBF is a medium term bond fund suitable for investors with moderate risk appetite. Please refer to Annex A for the comparative key features of the Funds.

 

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

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

If you are not in conformity with the above, 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 GS Fund

 

Additional Information for EIP Participants of BDO GS Fund

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

 

 

Comparative Key Features of BDO GS Fund and BDO Peso Bond Fund

Features BDO GS Fund BDO Peso Bond Fund
Fund Classification Medium Term Bond Fund Medium Term Bond Fund
Risk Profile Moderate Moderate
Investment Objective and Strategy The Fund aims for capital preservation and income generation from investments in a diversified portfolio consisting of selected government securities that can provide higher yields. The Fund’s benchmark is the Markit iBoxx ALBI Philippines 1-5 (Domestic) Index (IBXXPH15). The Fund aims to provide a high level of income with preservation of principal and maintenance of liquidity by investing in a combination of short to long-term fixed-income securities. The Fund’s benchmark is the Markit iBoxx ALBI Philippines 1-5 (Domestic) Index (IBXXPH15).
Minimum Initial / Additional Investment Php 10,000 Php 10,000
Minimum Holding Period 30 calendar days 30 calendar days
Early Redemption Fee 0.50% of original participation amount 0.50% of original participation amount
Management Fee 1.00% 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 One (1) banking day after notice of redemption is received One (1) banking day after notice of redemption is received
Historical Fund Performance (as of January 31, 2020)
Past 1 Year
Past 3 Years
8.18%
9.44%
8.71%
10.17%

*Past performance is not indicative of future performance.