Frequently Asked Questions

BDO Unit Investment Trust Funds

1. What is a Unit Investment Trust Fund?

A Unit Investment Trust Fund (UITF) is an open-ended pooled trust fund denominated in Philippine Pesos, U.S. Dollars or any acceptable currency, which is operated and administered by a trust entity. Each UITF is governed by a Declaration of Trust which contains the mechanics for investing, operating, and administering the fund. The investment portfolio of the UITF is then invested by a team of professional portfolio managers in various securities such as bonds or stocks, depending on the fund's investment objective. A UITF is subject to the rules and regulations of the Bangko Sentral ng Pilipinas (BSP).

2. What does an open-ended pooled trust fund mean?

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.

3. What is a unit of participation?

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.

4. How is a UITF different from a bank deposit?

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.

5. How is a UITF different from a mutual fund?

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.

6. How do you invest in UITFs?

When an investor wants to invest in a UITF, he buys unit of participation. The number of units that he will receive on his investment will be based on the NAVPU that will be released at the end of the applicable banking day.

 

Similarly, when an investor redeems his investment in a UITF, the proceeds will be based on the number of units redeemed multiplied by the NAVPU computed by the end of the applicable banking day. 

 

An investor can invest in a BDO UITF either through any BDO branch or through BDO Invest Online.

 
7. What do Net Asset Value and Net Asset Value per unit mean?

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.

8.What are the benefits in investing in UITFs?

Investing in the BDO UITFs also provides you with the following benefits:

Better earnings potential than traditional bank products – Each BDO UITF has its own investment objective when investing in a portfolio of bonds or stocks, from trying to preserve your capital by beating inflation to potentially growing your investment through capital appreciation.

Affordability – BDO UITFs allow you to invest in a portfolio of bonds or stocks for as low as PHP 10,000 or USD 500. This is much more affordable than investing directly in bonds or stocks.

Diversification - The BDO UITFs invest in a diversified portfolio of investments, automatically spreading your risk across various securities. Furthermore, combined exposure of a UITF to any entity and its related parties shall not exceed 15% of the total market value of the Fund, with the exception of government securities.

Liquidity - You can redeem your investments in BDO UITFs at any time. However we highly recommend that you invest in the BDO UITFs for the long term to maximize your earning potential.

Professional fund management – The BDO UITFs are managed by seasoned investment professionals all working together to deliver your investment goals. These experts have the research capabilities, skills, knowledge, and technology to determine when and what securities to buy and sell in order to provide the best possible returns for your funds.

Transparency – View the Net Asset Value per unit (NAVpu) and the Key Information and Investment Disclosure Statements of each of the BDO UITFs through Investor Tools.
Regulated product - The management and administration of the BDO UITFs by BDO Trust and Investments Group are supervised by the Bangko Sentral ng Pilipinas (BSP).  Each UITF is also subject to a separate annual audit by an independent auditor acceptable to the BSP. A BSP accredited third party custodian safe keeps and performs independent marking-to-market of securities held by the UITF.

9. Are there different types of UITFs?

UITFs mainly differ based on its investment objective and strategy as stated in the Declaration of Trust. The most common types of UITFs available are:

•    Money Market Funds – The investment objective of money market funds is mainly capital preservation. Money market funds are usually invested in short term money market instruments and time deposits, that provide better returns than traditional deposit products while giving them easy access to their funds. Money market funds are the least risky type of UITFs.

•    Bond Funds – The investment objective of bond funds is mainly capital preservation and income which are generated from the increase of market value of bonds and its coupon payments. Bond Funds invest mostly in government securities, corporate bonds and other fixed income securities.

•    Balanced Funds – The investment objective of balanced funds is to preserve capital while generating capital growth from gains on stock investments. Balanced funds are primarily invested in stocks while the balance is invested in bonds.  

•    Equity Funds – The investment objective of equity funds is to provide investors with capital growth by investing in stocks of corporations that are listed in a stock exchange. Investors earn through the increase in stock prices as well as through its dividends, if any. Equity funds carry higher investment risk in exchange for higher returns, as such, a longer investment horizon is recommended when investing in equity funds.

10. Are there risks in investing in UITFs?

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.

11. How will you know which type of UITF is appropriate for you?

Prior to investing in a UITF, an investor needs to identify his investment goal to match it to the most appropriate UITF. A client suitability assessment is conducted to determine the client’s investment suitability. It takes into account the investment objective, amount available for investment, how long an investor can stay in the fund and how much risk is the investor willing to take.

12. Who can invest in UITFs?

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

13. How can you determine how much you earned from the UITF?

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 PHP 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 = PHP 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 = PHP 10,442.38

 

Income = Amount redeemed of PHP 10,442.38 less original investment of PHP 10,000.00
Income = 442.38

Or

Return on Investment = Income of 442.38 divided by original investment of PHP 10,000.00
Return on Investment = 4.4238%

 

*above computation is for illustration purposes only. Past performance is not a guarantee of future returns.

14. How do you measure a UITF’s performance?

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.

15. Can I invest in multiple UITFs?

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.

16. What are the fees 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.

17. How do I make my contributions in a BDO UITF?

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.

18. How do I redeem my investments in a UITF?

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.

 

19. What are the requirements when opening a BDO UITF in any of the BDO branches?

For Personal Accounts:

  • Photocopy of two (2) valid IDs

 

For Sole/Single Proprietorship Accounts:

  • Registration Certificate issued by the Department of Trade and Industry (DTI)
  • Mayor’s Permit for the Current Year
  • Application for Trade Name
  • Valid Personal IDs of the proprietor/tress
  • For the signatory/ies other than the proprietor/tress, a designation by the proprietor/tress through a Notarized Special Power of Attorney (SPA) showing the specimen signature of the officer/s or person/s authorized to operate the account and valid IDs of the designated signatory/ies

 

For Corporations:

  • Articles of Incorporation and By-Laws
  • Certificate of Incorporation (issued by SEC)
  • Certificate of Filing of Officers or List of Elected Officers for the current year
  • List of Directors
  • List of Principal Stockholders owning at least 2% of the Capital Stock
  • Notarized Board Resolution authorizing the opening of account and its authorized signatories
  • Valid Personal IDs of the Signatories
  •  Verification of the authority and identification of the person purporting to act on behalf of the client
  • Secondary license/s issued by the SEC, if any

 

20. Where can I find information updating me about the investments and performance of the BDO UITFs?

Each BDO UITF has a monthly Key Information and Investment Disclosure Statement (KIIDS) that provides you information on fund performance and features to facilitate better understanding about your investment. You may check the BDO KIIDS here.

 

BDO Global Feeder Funds

1. What are the BDO Global Feeder Funds?

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:

 

     U.S. Dollar Denominated Funds:
       • BDO Global Equity Index Feeder Fund
       • BDO Global Equity Select Feeder Fund
       • BDO Global EM Equity Index Feeder Fund
       • BDO US Equity Feeder Fund
       • BDO China Equity Feeder Fund
       • BDO Europe Equity Feeder Fund
       • BDO Developed Markets Property Index Feeder Fund

    Japanese Yen Denominated Fund:
       • BDO Japan Equity Index Feeder Fund
 

2. What makes it different from the other BDO UITFs?

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.

3. Who can invest in the BDO Global Feeder Funds?

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.

4. What are the benefits of investing in the BDO Global Feeder Funds?

Investing in any of the BDO Global Feeder Funds lets investors grab opportunities available globally for as low as USD 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.

5. How can I invest in the BDO Global Feeder Funds?

You can start investing in the BDO Global Feeder Funds through any of the BDO branches nationwide or through BDO Invest Online.

 

BDO Easy Investment Plan

1. What is the BDO Easy Investment Plan?

The BDO Easy Investment Plan (EIP) is a wealth build-up program that helps individuals get into the habit of saving and investing.

The program incorporates tried and tested principles that make a successful savings and investment plan.  The EIP provides solutions to a number of concerns which are common to rookie investors. An EIP participant will experience what normal investors go through- from understanding his investor personality, to choosing suitable investments and gaining access and control of his own investment plan.

2. How does the EIP work?

First, decide the details of your investment program.

• How much do you want to regularly invest?
You can start investing for as low as P1,000 per month for Peso-denominated UITFs or USD200 per month for U.S. Dollar-denominated UITFs.
 
• How frequent and when do you want to be debited for this investment?
You can schedule your debit either once or twice a month.
(Every 5th, 10th, 15th, 20th, 25th, 30th of the month)

• Which UITF do you want to invest your money?
Choose the appropriate UITF that can match your short, medium and long-term goals.

When you have decided on the amount, frequency, debit dates and which UITF you want to invest your money, this is how the program will work:
Sample Illustration:

Amount – P1,000
Frequency – 1x a month
Debit date – 15th of the month
Investment – BDO Peso Money Market Fund
 

 

3. Can savvy/experienced investors benefit also from the BDO EIP?

Yes, savvy/experienced investors can also benefit from the BDO EIP since it utilizes a disciplined approach to investing and this is effectively done with the automatic debit facility. The savvy/experienced investors understand the benefit of using the cost averaging strategy for their investments and this is inherent in the EIP.

4. What BDO UITF products are available for enrollment with EIP?

For Philippine Peso Denominated UITFs:

  • BDO Peso Money Market Fund
  • BDO Short Term Fund
  • BDO Peso Bond Fund
  • BDO Peso Balanced Fund
  • BDO Equity Index Fund
  • BDO Equity Fund (formerly EPCIB Equity Fund)
  • BDO ESG Equity Fund
  • BDO Sustainable Dividend Fund
  • BDO Focused Equity Fund

 

For U.S. Dollar Denominated UITFs:

  • BDO Dollar Money Market Fund
  • BDO Medium Term Dollar Bond Fund (formerly EPCIB US Dollar Bond Fund)

5. How will I know what UITF product/s suit my risk appetite?

When you open an EIP account, you will be asked to answer the Client Suitability Assessment (CSA). The CSA will help you and us understand your investor personality based on your investment objectives, experience, time horizon, risk appetite and liquidity requirements. The results of your CSA will help determine the UITF product/s that will fit your investor personality.

6. How can I enroll in EIP and what are the requirements?

If enrolling through a BDO branch, just bring Two (2) valid IDs. If you already have a BDO Personal Online Banking Account, you may access BDO Invest Online to enroll to EIP.

7. I am an OFW and I have a Kabayan savings account, can I use this to enroll in EIP?

Yes, you may enroll in EIP using your Kabayan savings account.

8. Are there any fees when enrolling in EIP?

Enrollment to the EIP is free.

9. How do I monitor my investments in the EIP?

You may check your investment via BDO Online Banking. Simply enable My Trust Account/Invest Online to view your investment portfolio. Market Updates are also available and uploaded in the BDO website for your reference.

10. What do I get as proof of my investment?

You will receive a Confirmation of Participation (COP) and Statement of Account (SOA). These documents will be available for pick-up at your EIP branch of account.

If you enrolled your EIP via BDO Invest Online, your COP and transaction details are available for viewing online.
 

11. What if my settlement account does not have enough funds, is there a penalty for missing an EIP contribution schedule?

There is no penalty if you miss an EIP contribution schedule. Your EIP account will still be active and we will continue to debit your checking/savings account on your next debit date/s.  However, it is highly recommended to keep your settlement account funded so that you will not miss an investment opportunity through EIP.

12. When will I be debited if my EIP debit date falls on a weekend / holiday / non-banking day?

If your EIP debit date falls on a weekend / holiday / non-banking day, your account will be debited a day before your chosen debit date.

However, if your EIP debit date falls on an unscheduled holiday (i.e. holiday declaration due to typhoon), your account will be deducted on the next banking day.

13. Can I redeem/withdraw my investments from the EIP and still be in the program?

Yes. You can redeem/withdraw your investments and still be in the program. Just visit the branch where your EIP is booked.

For your investments with a COP, you need to surrender the COP upon redemption.

On the other hand, if you are redeeming participating units of investments without a COP, submit the Notice of Redemption.

If you enrolled via BDO Invest Online, you need to redeem/withdraw via the same channel.

14. How much are the penalties and charges for withdrawal?

If you are redeeming participating units of investments without a COP, this will be subject to a non-completion fee of 0.50% based on the original participation amount.

To illustrate:

Original participation amount – P5,000
Non-completion fee is 5,000 x 0.50% = P25 to be deducted from the final proceeds*. 

*Final proceeds is computed based on market value.

15. What if I lost my COP and have an existing investment with EIP? What are the requirements?

If you lost your COP, you will be required to submit a notarized Affidavit of Loss to the branch where you enrolled your EIP.

If you enrolled your EIP online, your COP is available for viewing or printing online.

16. What if I no longer want to continue my EIP?

To discontinue the automatic debit arrangement from your deposit account, go to the branch where your EIP is booked and submit the Notice of Unsubscription Form. If you enrolled via BDO Invest Online, you need to unsubscribe via the same channel.

The participating units of your investments without a COP will automatically be redeemed. This transaction is subject to a non-completion fee. On the other hand, your investments with COP/s will remain in the UITF until you decide to redeem these.

 

PERA

1. What is PERA?

PERA, the acronym for PERSONAL EQUITY and RETIREMENT ACCOUNT, was signed into law on August 22, 2008 under Republic Act No. 9505. This is a voluntary retirement account, which an individual can set up for his/her exclusive use and benefit. As such, PERA should be considered for long-term savings and investments to help Filipinos prepare to a more comfortable retirement.

2. What benefits can an individual get from PERA?

1. Income earned from PERA is tax-free.

2. Annual contributions are eligible for tax benefits.

        • Contributions paid by the individual contributor are eligible for a 5% tax credit.

        • Contributions paid by the employer are not subject to withholding tax on income.

3. In case of contributor’s death, PERA assets are exempted from estate tax.

 

To get the full tax benefits of PERA, use your PERA funds when you are at least 55 years old and have made a least five (5) years contribution. Otherwise, you will be penalized by paying BIR 20% from your total earnings and all the annual tax credits.

 

3. How can an individual qualify to open a PERA and be a Contributor?

An individual who (1) has the capacity to contract and (2) possesses a Tax Identification Number (TIN) can already qualify to open a PERA and be a CONTRIBUTOR.

 

The individual/ CONTRIBUTOR will need to go to an *accredited ADMINISTRATOR to open his PERA and make his regular contributions to his account.

 

*BDO was the first institution in the country to be given approval to become a PERA Administrator, after hurdling the pre-qualification requirements by BSP and being accredited by the BIR.  See functions of the PERA Administrator in FAQ No. 11.

 
4. I am an Overseas Filipino (OF) but I do not have a TIN. How do I secure my TIN so I can be eligible to open a PERA?

Per Bureau of Internal Revenue (BIR) Revenue Memorandum Circular (RMC) 103-2020, OFs can submit the application for Taxpayer Identification Number (TIN) either:

 • Manually through an authorized representative; OR

 • By the OF himself/herself via electronic mail (email)

  Through an  Authorized Representative OF himself/herself via electronic mail (email)

What are the requirements?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Submit the following documents :
1. BIR Form No. 1904 (2 originals)
2. Any government-issued  ID (1 photocopy)
3. Marriage contract, for married  female (1 photocopy)
4. Special Power of Attorney (SPA)
5. Any government-issued ID  of the authorized representative  (1 photocopy)
6. For First Time Job Seeker – Barangay certification that the applicant  is a resident  of the barangay and is a first time job seeker (1 certified true copy)
 
 
 
 
 
 
 
 
 
 
 
Submit scanned copies of the following documents:
1. Duly accomplished and signed BIR Form No. 1904 (Annex A);
2. Passport (Bio page include date of exit/departure stamp if applicable)
3. In lieu of Special Power of Attorney, as proof of absence in the country and account opening with banks, Overseas Employment Certificate (OEC) issued by the Philippine Overseas Employment Administration (POEA); or any official document showing that he will earn or has earned income in a foreign country in the year of PERA contribution;
4. In case of legitimate spouse of the Overseas Filipino, the marriage certificate shall be submitted in addition to items from 1 to 3 mentioned above.
Where to submit? The application of TIN shall be filed at the Revenue District Office (RDO) No. 39 South Quezon City Email  the application at rdo_39css@bir.gov.ph
What is proof of registration?
NO TIN card will be issued. 
BIR Form No. 1904 duly stamped and received indicating the TIN issued shall serve as proof of registration
NO TIN card will be issued. 
The acknowledgement receipt/reply to the email is sufficient proof of receipt of such application.
 
5. What type of PERA Contributor are you?

PERA Contributors can either be Local or Overseas Filipino (OF) but further classified as follows:

 

Local PERA Contributor

A Filipino citizen who is working or deriving income from the Philippines.

- An Employed Individual receiving purely compensation income from an employer.

- A Self-employed Individual deriving income from the conduct of trade or business and/or practice of profession.

OF PERA Contributor

- An individual citizen of the Philippines who is working or deriving income from abroad.

- An individual who retained or reacquired his Philippine citizenship under RA 9225 (Citizenship Retention and Reacquisition Act of 2003) and is working or deriving income from abroad.

 

6. How much can one contribute to his PERA?

The Contributor can contribute for as low as 1000 or as may be set by the specific Product Provider but following maximum annual qualified contributions set under the law:

 

Contributor Type Maximum Annual Qualified Contribution

Local Filipino

  • Locally employed

  • Self-employed

PHP 100,000 per calendar year
Overseas Filipino (OF)  PHP 200,000 per calendar year

 

Contributions to the PERA amounting to more than Php100,000 or Php200,000, as the case may be, shall not be accepted by the Administrator under the PERA.

 

Employers who also contribute to its employee’s PERA may do up to the extent of the maximum annual qualified contribution. The annual limit is shared if both the Employer and Employee pay the contributions in PERA. 

 
7. As an OF, how do I take advantage of the maximum annual qualified contribution for OFs?

You are initially allowed to contribute a maximum of P100,000 annually. For the year that you would like to increase your maximum annual contribution to P200,000, kindly submit any of the following: 

 

a. Overseas Employment Certificate (OEC) issued by the Philippine Overseas Employment Agency (POEA)

b. Current employment certificate from existing employer

c. Original copy/certified true copy of existing employment contract

d. Valid employment identification card issued by the employer abroad

e. Copy of work permit/ visa or re-entry permit

f. Sworn certificate made before a Philippine Consul 

 

For married Overseas Filipinos (OFs) who cannot directly open a PERA via the digital channel, his/her legitimate spouse or child based in the Philippines may represent him/her in opening a PERA at the BDO-TIG head office. 

 
8. How can I open a PERA with BDO as the Administrator?

All you need is a BDO Savings/Checking enrolled in BDO Online Banking to open a PERA and follow these steps:

     • Log-in to your BDO Personal Online Banking account

     • Access BDO Invest Online

     • Click on PERA Initial Opening and follow the steps beginning with PERA eLearning.

 

For Locally Employed Filipinos have a copy of your latest Income Tax Return (ITR) on hand as reference for the following:

     - Employer's TIN

     - Employer's Name

 
9. Where can a PERA Contributor invest his PERA contributions?

The law requires that PERA shall be invested solely in Qualified/Eligible PERA Investment Products duly approved by the concerned Regulatory Authority.  

 

The PERA Contributor can choose to invest up to a maximum of 5 of these PERA Investment Product Category:

a. unit investment trust funds

b. mutual funds

c. annuity contracts

d. insurance pension products

e. pre-need pension plans

f. shares of stock or other securities listed and traded in the local stock exchange

g. exchange-traded bonds

h. government securities

i. any other category of investment products or outlets which the concerned Regulatory Authority may allow for PERA purposes

 
10. Who are the major PERA participants and what are their respective functions?

The major PERA participants are the following:

 

PERA Participants BDO Roles
Administrator An entity which has been pre-qualified by the concerned Regulatory Authority (BSP, SEC or IC) and accredited by the Bureau of Internal Revenue (BIR), and is responsible for administering and overseeing the PERA of the Contributor. ✔ 
Custodian
A separate and distinct entity unrelated to the Administrator, accredited by the BSP to take custody of PERA assets. PERA Custodians are classified as Cash Custodians and Securities Custodians.
- Cash Custodian - receives all funds in connection with the PERA; receives instructions from the Administrator with regard to the custody and disposition of all PERA funds and reports to the Contributor, the Administrator and the concerned Regulatory Authority all PERA financial transactions and funds.
- Securities Custodian - maintains custody of all securities, evidence of deposits or investment; receives instructions from the Administrator with regard to the custody and disposition of non-cash PERA assets; and reports to the Contributor, the Administrator and the concerned Regulatory Authority all PERA financial transactions and funds.
 
Product Provider  An entity that provides and sells accredited PERA investment products ✔ 

Investment Manager

(optional)

A regulated entity accredited by the concerned Regulatory Authority and authorized by the Contributor, pursuant to a written investment management agreement, to make investment decisions for his PERA.  

 

11. What are BDO’s functions as a PERA Administrator?

BDO was the first institution in the country to be given approval to become a PERA Administrator, after hurdling the pre-qualification requirements by BSP and being accredited by the BIR. Our functions as a PERA Administrator are as follows:

  1. Educate and inculcate financial literacy in the Contributor
  2. Open the PERA account/s in the name of the Contributor
  3. Receive and record cash contributions from the Contributor for investment in PERA products
  4. Implement the Contributor’s and/or his Investment Manager’s instructions on where to invest the PERA funds
  5. Ensure PERA contributions are invested and reinvested
  6. Observe PERA contribution limits for tax purpose and enforce withdrawal limits
  7. Report to BIR and the Contributor the PERA contributions and withdrawals
  8. Compute the values of investments and report them to the Contributor, the concerned Regulatory Authority and the BIR
  9. Custodize cash and securities comprising the PERA with the custodian
  10.  Apply for BIR Income Tax Credit Certificates for the Contributor
  11. Ensure taxes and penalties relative to PERA are paid to the government
  12. Keep and consolidate records of all contributions, investments, earnings, expenses and withdrawals from the PERA, the valuations of the PERA assets and make regular reports to the Contributor and concerned Regulatory Authority
 
12. As a PERA Product Provider, what are the PERA Products being offered by BDO?

BDO, as a PERA Product Provider, offers these BDO PERA Unit Investment Trust Funds (PERA UITFs) which are duly approved by the BSP and has been granted by the BIR the tax-exempt privileges on all income earned from its investments and reinvestments 

To know more about each of the BDO PERA UITFs, please click on the particular Fund's name from the list above.

 

13. What can be considered as an early withdrawal of PERA and are there penalties to it?

The primary purpose of PERA is for the individual Contributor to do a long-term retirement planning preparation.  Thus, the full benefits of PERA can only be availed during a qualified withdrawal where the PERA contributor has already reached at least 55 years old and has contributed at least five (5) years to his PERA but not necessarily in consecutive years. In BDO, we originally termed this as the 55 and 5 rule.

 

As such, any withdrawal prior to the satisfaction of the 55 and 5 rule will be considered as an early withdrawal to PERA subject to the following penalties:

  1. The five percent (5%) tax credit given to the Contributor for the entire period of the PERA;
  2. A flat rate of twenty percent (20%) based on the total income earned by said account from the time of its opening/creation up to the time of withdrawal.

 

However, early withdrawals due to the following are EXEMPT from penalties:

  1. Withdrawal proceeds are transferred to another PERA Investment Product Provider and/or another PERA Administrator
  2. Accident or illness-related hospitalization expenses in excess of 30 days (should present a notarized doctor’s certificate.)
  3. Total Permanent Disability (should present a certification from the pertinent government agency that the Contributor has been subsequently rendered permanently totally disabled)
  4. Distribution of withdrawal proceeds to beneficiary/ies in case of Contributor’s death
 
14. How can I withdraw/terminate my BDO PERA?

To withdraw your PERA investments and terminate your PERA, you will need to fill-out and submit the PERA Notice of Withdrawal/Termination form to your BDO Branch of Account and they will take care of forwarding this to BDO Trust. You will also need to sign the PERA Quitclaim form after we have rendered the final accounting of your PERA for the release of the PERA proceeds.

 

Please send an email to trustcustomercare@bdo.com.ph and we will provide the forms and instructions.

 

 

BDO Invest

1. What is the BDO Invest

The BDO Invest is an Investment Management Account (IMA). An IMA is an agency arrangement where you, as the principal, appoint an agent like BDO Trust, to manage and invest your funds in accordance with your investment parameters. Unlike in a trust arrangement, you at all times retain the legal title to the funds / investments in the IMA.

2. What are the benefits of opening a BDO Invest?

Aside from getting the opportunity to earn higher returns than traditional bank products, you also get to enjoy the following benefits when opening a BDO Invest:

Consolidated account
Opening a BDO Invest allows you to consolidate all your investments in one account. No need to open a different account for each type of asset.

Diversification of Investments
It allows you to invest in one or several investment outlets such as government securities, investment grade corporate bonds, preferred shares, listed stocks, private placements and even time deposits.

Customized Portfolio
The chosen investments are 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.  You also have the option to withdraw the income earned from your investments, regularly or upon your request.

Professional Fund Management
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, 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.

Safety of Investments
Investments go through a stringent evaluation and approval process by BDO Trust Group's Investments Committee and by the Trust Committee before these are recommended to clients.


Transparency
BDO Trust provides you regular updates on your investment portfolio through your Statement of Account. You can also view your BDO Invest Account through BDO Invest Online.
 

3. Who can open a BDO Invest Account?

The BDO Invest Account is ideal for affluent Filipinos or resident foreign investors looking for higher yields from different investment securities but do not have the expertise or the time to manage their investment portfolio.

4. What is the minimum investment amount to open a BDO Invest Account?

You can open a BDO Invest for a minimum investment of PHP 1Million or USD 25,000.

5. What are the fees?

 

Management Fee Schedule Minimum initial/ subsequent / outstanding investment amount Fee rate
At least PHP 1 Million 0.40%
At least PHP 10 Million 0.20%
At least PHP 50 Million 0.10%
If invested in long term outlets – at least PHP 1 Million 0.10%
For foreign currency, at least USD 25,000 0.25%

 

6. What should I bring when I want open a BDO Invest Account

a.    Photocopy of 2 valid IDs    
b.    For foreign investors: Special Philippine Residency VISA/IDs

 

BDO Invest Online

1. What is BDO Invest Online?

BDO Invest Online is an internet based investment facility allowing you to view and invest in BDO Unit Investment Trust Funds. All you need is your BDO Online Banking account.

2. What are its benefits?

Investing through BDO Invest Online allows you to invest in the comforts of your own home or office at your convenience. No need to go to the branch to do your investment transaction. You also save time and effort in the process.

3. What are its features?

BDO Invest Online allows you to:
•    Invest directly in the BDO Unit Investment Trust Funds (UITFs)
•    Enroll in an automatic savings and investment program through BDO Easy Investment Plan (EIP)
•    Manage the details of your EIP
•    Regularly check the performances of your UITF  investments
•    Redeem your UITF investments booked via Invest Online
 

4. Are there additional fees when enrolling?

Enrolling in BDO Invest Online is absolutely free. There are no additional fees for using this facility.

5. How can I enrol?

With your BDO Online Banking account, start investing online by following these steps:
1.    Go to “My Accounts”
2.    Click “My Trust Account/ Invest Online”
3.    Click “Transaction”
4.    Choose “Regular UITF Subscription” if you want to make a direct investment to any BDO UITFs. If you want to set your financial journey on autopilot, choose “EIP Contribution / Unsubscription”
5.    Answer the Client Suitability Assessment (CSA) to find out what kind of investor you are and which UITFs could best suit your investment style.
6.    For direct investments in BDO UITFs, select the UITF you would like to invest in and read the following documents that will help you understand the UITF you are investing in as well as the risks involved:
     •    Investment Policy Statement (IPS)
    •    Risk Disclosure Statement (RDS)
     •    Omnibus Participating Trust Agreement (OPTA)
7.    For EIP participants, input the following in your contribution details:
    •    Fund
    •    Amount per Contribution – minimum of PHP1,000/USD200
    •    Frequency – Once or Twice a Month
    •    Day(s) of Contribution – 5th, 10th, 15th, 20th, 25th, 30th
    •    Contribution Starts On – First Contribution Date
     •    Account Number – Savings or Checking Account where your funds will be automatically debited.
8.    Check the details then click submit.

Congratulations, you are now an Investor through BDO Invest Online!