NOTICE TO THE PARTICIPANTS OF BDO MEDIUM TERM DOLLAR BOND FUND
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October 3, 2022
Change in Fund Name and Modified Duration Policy
of BDO Medium Term Dollar Bond Fund
WewishtoinformyouthattheBDOTrustCommittee hasapproved the change in the fund name and the modified duration policy of the BDO Medium Term Dollar Bond Fund (the “Fund”) and this shall take effect on November 7, 2022:
Change in Fund Name and Modified Duration Policy
from
to
Fund Name
BDO Medium Term Dollar Bond Fund
BDO Dollar Bond Fund
Modified Duration Policy
The modified duration is between 3 to 5. Modified duration is a measure of a bond's sensitivity to a 1% (or 100 basis points) change in interest rates assuming that cash flows are not affected by changing interest rates.
The modified duration shall not exceed 5. Modified duration is a measure of a bond's sensitivity to a 1% (or 100 basis points) change in interest rates assuming that cash flows are not affected by changing interest rates.
The above change in the fund name and modified duration policy aims to allow the Fund to better position the portfolio and achieve its return objective of generating returns in excess of the benchmark. The Fund will continue to be managed in the same way as it is presently being managed, in line with the Fund’s investment objective and policies.
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 amendment. If this is not the case or you are not in conformity with the above amendment, you may get in touch with your Trust Marketing Officer and/or UITF servicing branch on or before November 4, 2022 to discuss other BDO UITFs/investment products that may better match your requirements. Early redemption fees shall be waived if redemption orders are made prior to the effectivity date.
For clarifications, please feel free to call us at the following numbers: (02) 8840-7000 locals 37026 / 43452 / 35485. You may also send us an email at BDOInvest@bdo.com.ph with the subject line: BDO Dollar Bond Fund and we will be glad to assist you.
