What are UITFs
Unit Investment Trust Funds (UITFs) are ready-made investments that allow the pooling of funds from different investors with similar investment objectives. The pooled funds are managed by professionals who carefully select financial instruments like money market securities, bonds, and equities.
Why invest in BDO UITFs
Start investing for as low as ₱1,000 or $200 a month via EIP or invest anytime for ₱10,000 or $500
Create a well-balanced portfolio that will be resilient through different market cycles.
BDO UITFs not only generate returns better than traditional savings accounts, they're also competitive relative to peers.
Each fund is handled by a team of experienced managers, traders, and researchers all working together to make better returns at minimal risk.
Explore different BDO UITF Products
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Frequently Asked Questions
A UITF is an open-ended pooled trust fund, which means that it allows client to invest or redeem their investments at any time and the UITF will continue to be managed with no predefined termination date. It is the investor who decides how long he wants to keep his funds invested. Funds from various clients with similar investment objectives are pooled together into one fund.
An investor, whether it is an individual or an institution, can take part in the UITF by purchasing units of participation in the fund. A unit of participation represents the investor's proportionate share in the total value of the fund. Instead of owning a specific asset of the fund, an investor owns a proportionate share in all of the UITF’s assets.
A UITF is not a deposit account but a trust product managed by a trust entity or the Trust Department of the bank. The underlying investments of a UITF are marked to market as such, its value can go up or down on a daily basis. A UITF has no guaranteed rate of return and its past returns are not indicative of future performance. Unlike a bank deposit, a UITF is not covered by PDIC Insurance.
A UITF and a mutual fund are both open-ended pool funds, which are managed by professional fund managers. Both the UITF and mutual fund are invested in a diversified basket of stocks, bonds, or other securities.
However, investing in a UITF buys you units in the fund while investing in a mutual fund buys you shares. Unlike a UITF, a mutual fund is structured as a corporation and is regulated by the Securities and Exchange Commission (SEC). In addition, a mutual fund may charge sales fees and commissions on top of the management fee. A UITF on the other hand may only charge a trust fee.
Units of participation are made available to investors based on the Net Asset value Per Unit (NAVPU) of the fund for the day. The NAVPU is net of fees and taxes.
Net Asset Value per Unit (NAVPU) = Net Asset Value (NAV) divided by the total number of outstanding units of participation in the fund.
The NAV is the sum of the market value of all the underlying investments of the fund less expenses such as taxes, fees and other charges.
Net Asset Value (NAV) = Sum total of the market value of all the fund’s underlying investments less expenses, taxes and fees.
Assets of the UITFs are valued based on their prevailing market prices which may go up or down. A UITF does not guarantee any rate or return on investments and losses, if any, shall be for the risk of the UITF investor. UITFs are not covered by the Philippine Deposit Insurance Corporation (PDIC). The risks inherent to the specific type of UITF shall be explained to you by a UITF certified marketing personnel prior to investment.
Filipino Citizens, Philippine residents, and domestic corporations with capacity to contract and who are not considered US Persons under the US securities and tax laws may invest in the UITFs.
Prospective participants/clients should also consult their own tax advisors as to the specific Philippine tax consequences of acquiring, holding and redeeming of units of any Fund/investment outlet, as well as the consequences arising under the laws of any other taxing jurisdiction.
An investor earns from a UITF through the difference in NAVPU of the units between the time of subscription and redemption.
For example, an investor invests ₱10,000 in BDO Short Term Fund on January 3, 2019. The NAVPU of BDO Short Term Fund on that day is 103.2837.
No. of Units = ₱10,000 divided by the NAVPU of 103.2837
No. of Units = 96.8206
The following year, the investor decides to redeem his investment. The NAVPU of BDO Short Term Fund on January 3, 2020 is 107.8528.
Amount redeemed = No. of Units of 96.8206 x 107.8528
Amount redeemed = ₱10,442.38
Income = Amount redeemed of ₱10,442.38 less original investment of ₱10,000.00
Income = 442.38
Return on Investment = Income of 442.38 divided by original investment of ₱10,000.00
Return on Investment = 4.4238%
*above computation is for illustration purposes only. Past performance is not a guarantee of future returns.
A UITF’s performance is normally compared to a benchmark. A benchmark is usually an index or a collection of different securities that behaves similarly to that of the UITF. The fund manager of the UITF strives to consistently beat the benchmark through careful security selection and investment strategy.
Yes, it is highly recommended that an investor invest in multiple UITFs to diversify risk and improve portfolio returns as long as it is in line with his investment objectives and is amenable to the risks involved.
The trustee charges the fund a flat trust fee rate per annum for the management of the fund. In addition, taxes and qualified expenses are charged to the fund. The trust fee varies depending on the type of fund and it is already incorporated in the daily NAVPU of the particular BDO UITF. There are no agent’s commissions or front-load fees which are common practice for mutual or insurance funds.
Just visit any BDO branch nearest you or log-in to your BDO Personal Online Banking account to invest in the UITFs. Contributions may be made in cash, BDO and manager’s check or debit from your BDO account, as applicable.
After making your contribution to the fund, you will receive a Confirmation of Participation (COP), as evidence of participation. This will contain the details of your UITF investment such as the amount of participation, NAVPU on the date of purchase and the number of participating units.
For UITF investments coursed through a BDO branch, fill-out the Notice of Redemption of Participation found at the lower portion of your COP and submit this to the same BDO Branch where you opened your UITF.
For UITF investments done online, you need to submit your redemption request via the BDO Invest Online.
The BDO Global Feeder Funds is a suite of foreign currency denominated Unit Investment Trust Funds (UITFs) structured as feeder funds. Here are the BDO Global Feeder Funds:
• BDO Global Equity Index Feeder Fund
• BDO Global Equity Select Feeder Fund
• BDO Global EM Equity Index Feeder Fund
• BDO US Equity Index Feeder Fund (Formerly BDO US Equity Feeder Fund)
• BDO China Equity Feeder Fund
• BDO Europe Equity Feeder Fund
• BDO Developed Markets Property Index Feeder Fund
Each of the BDO Global Feeder Funds is mandated to invest at least 90% of its assets in a single collective investment scheme called a target fund. In addition, these target funds are traded in a foreign country and managed by reputable global fund managers that have passed the stringent selection process of BDO Trust and Investments Group.
The other BDO UITFs invest directly into securities such as bonds and stocks and are managed by professional fund managers from BDO Trust and Investments Group.
Participation in any of the Global Feeder Funds shall be open to Filipino citizens, Philippine residents and domestic corporations with capacity to contract and who are not considered US Persons under the US securities and tax laws.
Investing in any of the BDO Global Feeder Funds lets investors grab opportunities available globally for as low as $500. No need to open expensive brokerage accounts. Investing in the BDO Global Feeder Funds also allows you to instantly diversify your investment portfolio by being invested in different stocks that are traded outside of the Philippines. So your investments grow not only locally but globally as well.
You can start investing in the BDO Global Feeder Funds through any of the BDO branches nationwide or through BDO Invest Online.
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8741 Paseo De Roxas Makati City 1226 Philippines
This channel is dedicated to handling inquiries and concerns related to the following:
- Unit Investment Trust Funds (UITFs)
- Easy Investment Plan (EIP)
- Personal Equity and Retirement Account (PERA)
- Investment Management/Trust Accounts (IMA/TA)
- Trust Invest Online