Dollar Investment Management Agreement

 

BDO DOLLAR INVESTMENT MANAGEMENT ACCOUNT

The BDO Dollar Investment Management Account (DIMA) is an investment management arrangement wherein BDO Trust, acting as an Investment Manager (Agent), is authorized to manage the US Dollar funds of individuals (natural persons) according to the investment objectives, strategies and guidelines set by the Client (Principal).

Maximize the potential of your US Dollar funds to earn by investing them in higher yielding outlets available through BDO DIMA. Under this arrangement, you can create a portfolio by choosing from among several available investment outlets that we offer daily. These investment outlets may be in the form of special time deposits, government securities, investment grade corporate bonds and promissory notes and supranational bonds.

Client Suitability

The Dollar Investment Management Account arrangement is ideal for high networth individuals looking for higher yields compared to traditional bank deposits but do not have the time to manage their own funds or have limited investment options accessible to them.

Product Features

Currency: US Dollars (US$)
Minimum Amount/ Minimum Initial/ Maintaining Balance: US$ 25,000.00 but may be adjusted from time to time to meet the required PHP equivalent of IMAs which is P1.0M using prevailing conversion rates on date of contribution
Term of Investment/s: Based on term of the investment outlet/underlying security
Management Fee: 0.25% p.a. (based on gross interest rate)
Eligibility: Filipino citizens and resident aliens of the Philippines.
Interest Rate: Prevailing interest rates of the investment outlet/ underlying security
Trading Period: up to 12:00 noon
Taxation: In accordance with the provisions of Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Act, effective 1 January 2018, interest income  from foreign currency-denominated time deposits are subject to a final tax rate of 15% of such interest income.
Allowable Investments: Dollar denominated time deposits, government securities and other fixed income instruments approved by the BSP and the BDO Trust Committee for investment management arrangements
Withdrawal of Principal: On a per Disclosure Statement basis, subject to prevailing market prices
Withdrawal of Interest: At the client’s option, this may be allowed during interest payment dates through instructions indicated in the Disclosure Statement. Otherwise, interest income shall form part of the principal and shall be invested and reinvested by the Investment Manager according to the terms of the agreement and client’s instructions.

Benefits to Clients

Professional Fund Management

When you invest with BDO Trust, you benefit from the expertise of seasoned investment professionals, all working together to deliver your investment goals and always keeping in mind your risk profile. These experts have the research capabilities, skills, knowledge, experience, as well as state-of-the-art technology that allow them to decide when and what securities to buy and sell in order to yield the best possible returns for your funds.

Customized Portfolio

With a minimum investment of USD 25,000.00, our seasoned fund managers can create an investment portfolio of dollar-denominated securities fitted to your investment objectives, risk appetite and investment outlook. The end goal is to provide you with superior returns, taking into account your risk-reward profile.

Diversification and Flexibility of Investments

Your funds can be invested in your choice of one or several investment outlets. You also have the option to withdraw the income earned from your investments, regularly or upon your request.

Competitive Returns

Under an agency arrangement, your funds are not subject to reserve requirements, thus allowing full investment of your funds for maximum earnings.

Administrative Ease

Trustee Bank provides financial statements, documentation and legal assistance, and representations with government agencies concerned.

Documentation

Dollar Investment Management Account Documentation Requirements:

  1. Account Opening Kit
    • Customer Account Record – Trust
    • Investor Profile Questionnaire (IPQ)
    • Client Investment Suitability (CIS)
    • Risk Disclosure Statement (RDS)
    • Signature Card
  2. Dollar Investment Management Agreement
  3. Investment Instruction Letter
  4. Supplemental Agreement (if any)
  5. Standard account opening requirements and procedures
  • Photocopy of 2 valid IDs
  • 2 Sets of Signature cards
  • For foreign investors: Special Philippine Residency VISA/IDs