Investment Management Agreements

 

BDO INVESTMENT MANAGEMENT ACCOUNT (Regular Taxable – Peso Denominated)

Maximize the potential of your money to earn by investing them in higher yielding outlets available through BDO Investment Management Account. 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 government securities, investment grade corporate bonds and promissory notes, or time deposits.

Client Suitability

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

Product Features

BDO offers the following Investment Management Accounts:

  IMA 01 IMA 03 IMA 04
Minimum Investment PhP 100 Million PhP 1 Million PhP 10 Million
Minimum Additional PhP 1 Million PhP 1 Million PhP 1 Million
Fee Rate 0.10% p.a. (based on net interest rate). 0.40% p.a. (based on net interest rate). 0.20% p.a. (based on net interest rate).
Currency: Philippine Peso (PhP)
Term of Investment/s: Based on term of the investment outlet/underlying security
Eligibility:  Filipino citizens and resident aliens of the Philippines.
Interest Rate: Prevailing market rate of available investment outlet 
Trading Period: 12:00 noon 
Taxation: Subject to 20% final withholding tax
Allowable Investments: SDAs, government securities, deposits 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

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 PhP 1 Million, our seasoned fund managers can create an investment portfolio of 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

You have the discretion to invest your funds in specific instruments giving you more flexibility. Moreover, your funds are not subject to reserve requirements thus allowing full investment of your fund for maximum earnings.

Administrative Ease

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

Documentation

Investment Management Account (Regular) 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. 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

 

BDO LONG TERM INVESTMENT MANAGEMENT ACCOUNT

Maximize the potential of your money to earn by investing in higher yielding outlets. This is available through our BDO Long Term Investment Management Account (IMA) for individuals. Under this arrangement, you can create a portfolio by choosing from among several available investment outlets. These investment outlets may be in the form of government securities, investment-grade corporate bond and promissory notes, or special time deposits. Clients can choose their investments based on their personal investment objectives, strategies and guidelines. Investing is made easy and convenient.

The BDO Long Term IMA presents an opportunity to earn more than the usual investment outlets. All you need to do is to choose from a variety of investment outlets. Investing via the BDO Long Term IMA may also provide you tax free returns!*

Client Suitability

BDO Long Term Investment Management Account is ideal for investors who are willing to stay invested longer to maximize the yield of their fund. This product is best suited for high net worth individuals with no time to manage their own funds or have limited investment options available to them.

Product Features

Currency: Philippine Peso (PhP)
Initial Amount:  PhP 1,000,000.00
Minimum Additional: PhP 1,000,000.00
Maintaining Balance: PhP 1,000,000.00
Term of Investment/s: Based on term of the investment outlet/underlying security
Fee Rate: 0.25% p.a. (based on gross interest rate)
Eligibility: Open to individuals or natural persons who are Filipino citizen/s or resident aliens of the Philippines.
Interest Rate: Prevailing market rate of available investment outlet
Trading Period: 12:00 noon
Taxation:

Generally subject to 20% final withholding tax.

*However, tax privileges may apply for bank issues with maturities of five (5) years and up, when available, and subject to the Tax Reform Act of 1997, Revenue Regulations No. 14-2012 and Revenue Memorandum Circular (RMC) No. 81-2012.

Tax privileges pursuant to the Tax Reform Act of1997

Holding Period

Final WHT Rate

Below 3 Years           20%
3 to less than 4 Yrs.           12%
4 to less than 5 Yrs.             5%
5 Years             0%
Allowable Investments: Deposits, BSP Special Deposit Accounts, government securities and instruments approved by the BSP and the BDO Trust Committee for investment management accounts
Withdrawal of Principal: On a per Disclosure Statement basis, subject to prevailing market prices

Benefits to Clients

Professional Fund Management

BDO Trust has one of the largest assets under management in the country today – a testament to the public’s continued vote of confidence in its trust and investment management services. Because of its size, debt issuers as well as investors go to BDO Trust when they need to borrow funds or when they have funds to invest, respectively. This has made BDO Trust a favorite meeting place of fund investors and borrowers alike.

Customized Portfolio

With a minimum investment of PhP 1 Million, our seasoned fund managers can create an investment portfolio of 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

Long-term investment outlets are made available through this product and these may therefore provide you higher regular income for a longer period of time. Moreover, your funds are not subject to reserve requirements, thus allowing full investment of your fund for maximum earnings.

Administrative Ease

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

Documentation

Investment Management Account (Long Term) 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. 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
  • Enrollment for auto-credit facility (required for long-term investments)
  • For foreign investors: Special Philippine Residency VISA/IDs