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Saving is, and always will be, the foundation of any fortune. It is secure, risk-free and readily accessible. But saving alone is not enough to make your money grow. You should also invest. This means taking some risks, but the rewards are higher. When you save and invest, your money has the power to grow faster. With this in mind, BDO Trust and Investments Group developed the BDO Easy Investment Plan (EIP), an investment scheme that enables you to attain your financial goals and financial wellness through the twin habits of regularly saving and investing. It incorporates what investment experts consider to be the best, tried and tested principles that make a successful saving and investment plan and provides a solution to counter the major obstacles to saving and investing.
Client Suitability
The EIP is for individuals who wish to have a medium to long-term saving and investment plan so that they can achieve their financial goals and financial wellness at some future time. The investor profiles of these individuals should show that it is suitable for them to invest in the UITF product they selected as investment/s for their EIP funds.
Product Features
Starts at Php1,000.00 per contribution per month for all UITFs with the EIP feature except for the BDO Peso Money Market Fund (PMMF), which starts at Php 10,000.00.
Investment Amount:
Once a month (5th, 10th, 15th, 20th, 25th or 30th) Twice a month (5th & 20th, 10th & 25th, or 15th & 30th)
The following Unit Investment Trust Funds (UITFs) are available through the EIP: * BDO Peso Money Market Fund (PMMF) Underlying Investment: * BDO Peso Fixed Income Fund (PFIF) * BDO Peso Balanced Fund (PBAL) * BDO Equity Fund (EQUITY)
Settlement Account:
Auto debit from any BDO Savings/Checking/Payroll account maintained with any BDO branch. Every time the market value of the investment reaches Php10,000.00 for PFIF, PBAL and EQUITY
Spin-Off Amount:
and Php 100,000.00 for PMMF on a contribution date, this will spin-off and be treated as a regular UITF investment documented by a Confirmation of Participation (COP).
0.50% of original contribution amount At least four (4) banking days before the desired first contribution date
The EIP makes saving and investing automatic through its auto-debit facility. It enables a participant to regularly set aside funds for immediate investment in his chosen UITF/s.
Convenience
Enrolment can be done in any of the BDO branches nationwide.
Flexibility
The EIP is multi-purpose since it can be used for a variety of a participant's major projects. This is unlike private and government pension funds and pre-need and insurance funds which can be withdrawn/distributed only upon retirement, disability or death.
Affordability
The EIP is affordable as it can suit the budget of the participant. An EIP participant can choose any amount per contribution (starting at Php1,000.00 for all UITFs with EIP feature except for the PMMF which starts at Php 10,000.00) for investment in his chosen UITF.
Cost Averaging
The EIP enables the participant to benefit from peso cost averaging, a time tested personal wealth-building strategy wherein fixed amounts of investment in regular intervals over a period of time allow an investor to average his costs. This allows the participant to invest without having to constantly monitor the market. Anytime is a good time to invest!
Documentation
Easy Investment Plan (EIP) Documentation: 1. 2. 3. 4. One (1) EIP Application Form which includes the EIP Terms and Conditions and Automatic Debit Arrangement Form One (1) set of UITF Customer Account Record One (1) set of Signature Card Account Opening Kit:
o o o o o
5. 6.
Investor Profile Questionnaire (IPQ) Client Investment Suitability (CIS) Risk Disclosure Statement (RDS) Declaration of Investor/s Omnibus Participating Trust Agreement
Basic Requirements
One (1) set of Customer Account Record One (1) set of Signature Card Account Opening Kit: 1. 2. 3. 4. 5. Investor Profile Questionnaire (IPQ) Client Investment Suitability (CIS) Risk Disclosure Statement (RDS) Declaration of Investor/s Omnibus Participating Trust Agreement
Unit Investment Trust Funds (UITFs) are ready-made investments that allow the pooling of funds from different investors with similar investment objectives. These funds are managed by professional fund managers with the aim of meeting such objectives through investments in various financial instruments such as money market securities, bonds and equities.
Diversification. By investing in UITFs, risks are spread out across the various investments held by the pooled trust fund. Regulations require that the combined exposure of the UITF to any entity and its related parties shall not exceed 15% of the market value of the UITF, except government securities. Another exception is for the equity funds that track the index, in which case, investments in particular stocks of a UITF can exceed the 15% limit to the extent of its share in index weight.
Liquidity. While it is advisable to stay invested in the UITFs for at least the time horizon recommended for a particular UITF, UITFs are designed to allow you to redeem units of participation at any time. This is because the allowed investments of UITFs are limited to bank deposits/deposit substitutes and tradable investments.
Affordability. UITFs generally have low minimum investment requirements. Additional investments may be made in tranches as funds become available to the client. Better earnings potential. Greater earnings potential is achieved without having to invest large sums of money. There are opportunities for potentially higher returns due to possible marked-to-market gains on top of accrued income or dividends from investments. UITFs provide access to financial instruments not readily available to retail investors.
Exempt from reserve requirements. UITFs are not subject to reserve requirements imposed on bank deposits, thus your funds are fully invested. Professional fund management. Participating in the UITFs allows you to gain access to the expertise and services of seasoned fund managers who are able to actively monitor the markets for investment opportunities and manage the risks in line with the objectives and allowed investments of a particular UITF.
Transparency. Trust entities are required to publish the UITF price at least weekly, allowing investors to compare investment performance of various fund managers. Regulated product. The management and administration of UITFs are governed by the BSP. Each UITF is subject to a separate annual audit by an independent auditor acceptable to the BSP, the results of which are available to investors upon request. In addition, each UITF is required to have a BSP accredited third party custodian, who is tasked with safekeeping the securities of the UITF and performing independent marking-to-market of such securities.
3. 4.
Balanced Funds. For balanced investors who wish to achieve a higher return by investing in a portfolio of fixed income securities and equities. Recommended for participants who can keep invested for more than three (3) years. Equity Funds. For aggressive investors who wish to invest substantially in equities to achieve a higher long-term appreciation of growth of capital. Recommended for participants who can keep invested for more than three (3) years.
BDO Peso Money Market Fund BDO Dollar Money Market Fund BDO Peso Bond Fund BDO Dollar Bond Fund BDO GS Fund BDO Peso Fixed Income Fund BDO Medium Term Dollar Bond Fund BDO Peso Balanced Fund BDO Equity Fund
100 units
Php 1.50
After getting the market value of your UITF investment, you can determine the returns by comparing it with your original purchase amount. If the value of your UITF increased, there is a gain/earning and if it decreased, there is a loss.
Php 100
Gain/ (Loss)
Since the market value is higher than the original purchase amount in this example, you are gaining P50 for your participation at point of computation. For a convenient way of determining the value, earnings or loss of your UITF investment, you may use the UITF calculator here.
11. What's the difference between the absolute yield and the annualized yield?
An annualized yield is when absolute yield is converted to its per annum equivalent. To illustrate using above examples: 1. 2. The equivalent annualized yield is 12% p.a. (or 1% X 12 months) The equivalent annualized yield is 400% p.a. (or 100% X 4 quarters)
Since UITFs use a marked-to-market valuation methodology, it is not practicable to use annualized yields similar to that used in Time Deposit quotes.
Interest Rate risk. The potential for an investor to experience losses due to changes in interest rates; Market/Price risk. The potential for an investor to experience losses due to changes in the market prices of securities (e.g. bonds and equities); Liquidity risk. The inability to sell or convert assets into cash quickly or where conversion to cash is possible but at a loss; Credit risk. The risk of loss due to a borrowers or issuers failure to repay principal and/or interest on securities issued ; Reinvestment risk. The possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested; Hedging risk. The possibility for an investor to experience losses brought about by the inherent risks which the underlying investment is exposed to despite the use of a hedging instrument; Foreign Exchange risk. The possibility for an investor to experience losses due to fluctuations in foreign exchange rates; and Country risk. The possibility for an investor to experience losses arising from investments in securities issued by/in foreign countries due to the political, economic and social structures of such countries.
Please click this link to read through the complete Risk Disclosure Statement.
15. What are the management fees that I will pay when investing in the BDO UITFs?
As compensation for the Trustees services and to cover for the costs involved in managing the UITF, a trust fee, which may r ange between 0.50% and 1.00% is charged to the fund and is already incorporated in the daily NAVPU of the particular BDO UITF. There are no agents commissions which is common practice for mutual or insurance funds.
BDO Homepage (http://www.bdo.com.ph) For Globe, Smart and Sun subscribers, just text SMAC NAV and send to 2966 Phonebanking: (63)(2)-631-8000
BDO Online Banking, please click here for the enrollment process in Internet Banking. With BDO Online Banking, you can view the status of all your UITF investments.
Also, a UITF Yield Calculator is available via this link. This automatically computes for the clients gains/ losses simply by inputting the purchase and redemption dates of particular UITF investments.
19. Where can I find information updating me about the investments and performance of the BDO UITFs?
Regulations require that quarterly disclosures on each UITF be made available to its participants. These disclosures include the performance and an update of the prospective and outstanding investment outlets of each UITF. BDO Trust provides printed UITF quarterly disclosure brochures through its Branches. Moreover, UITF reports, which are updated on a monthly and quarterly basis, can be found here
DISCLOSURES
BDO Unit Investment Trust Funds (UITFs) are trust products. They are NOT DEPOSITS and are not insured by PDIC. Due to the nature of the investments and the marked-to-market valuation thereof, yields and potential yields cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility of the securities held by the UITFs, even if invested in government securities, is f or the account of the investor. As such, units of participation of the investor in the UITFs, when redeemed, may be worth more or be worth less than his initial investment/contribution. Historical performances, when presented are purely for reference purposes and are not guarantees of future results. BDO, as Trustee, is not liable for losses, unless upon willful default, bad faith or gross negligence. Prior to admission of an investor in the UITFs, BSP Circular 593 requires that BDO perform a client profiling process to guid e the investor in choosing investments best suited to his objectives, risk profile and experience. Prior to making investments, an investor must read the complete details of the UITF in the plan rules, understand the risks involved which are provided in the Risk Disclosure Statement, make his own risk assessment and when necessary, seek independent/professional opinion. The plan rules governing each of the BDO UITFs, as well as the external auditors report for each fund, are available at the office of BDO Trust and Investments Group for any interested investor. To invest, an investor is required to submit/accomplish the following documentary requirements for UITFs: valid identification documents as required by the Anti-Money Laundering Act (AMLA), Risk Disclosure Statement and client suitability assessment forms. An investor is also advised that BSP Circular 593 likewise requires that the client suitability assessment forms be updated whenever the characteristics, preferences or circumstances of the investor change or at least once every three years, provided that if the investor does not notify the trust institution of such change, he is deemed to have waived his right for a new client suitability assessment for the prescribed period. Investments in the specific UITFs are evidenced by a Participating Trust Agreement and a Confirmation of Participation. BDO UITF Investment Disclosure Statements
MONTHLY REPORTS (June 2013) BDO Peso Money Market Fund BDO Peso Bond Fund BDO GS Fund BDO Peso Fixed Income Fund BDO Peso Balanced Fund BDO Equity Fund
QUARTERLY REPORTS (June 2013) BDO Peso Money Market Fund BDO Peso Bond Fund BDO GS Fund BDO Peso Fixed Income Fund BDO Peso Balanced Fund BDO Equity Fund
MONTHLY REPORTS (June 2013) BDO Dollar Money Market Fund BDO Dollar Bond Fund BDO Medium Term Dollar Bond Fund
QUARTERLY REPORTS (June 2013) BDO Dollar Money Market Fund BDO Dollar Bond Fund BDO Medium Term Dollar Bond Fund
In recent years, the Philippine per capita gross domestic product has been growing, largely as a result of fiscal developments and the inflow of funds from Overseas Filipinos. As our country becomes economically developed and its populace subsequently wealthier and more sophisticated, it will follow the trend worldwide wherein in an improving economy, there is a noticeable interest in the money and capital markets where investors are able to share in the growth of the economy and participate in the profits of the more established companies. While investing in the capital markets has traditionally been only for people with large portfolios and the expertise to manage risks and pursue higher returns, pooled funds like the Unit Investment Trust Fund (UITFs) have enabled a wider number of people to participate in these markets. In view of these, we discuss herein the important reasons why an investor may want to consider putting his money in a UITF.
Benefits to Investors
Our wide selection of BDO UITFs allows you to choose a fund or a combination of funds that is/are well suited to your needs, financial requirements and life goals. With the BDO UITFs, your common investing concerns are addressed. Diversification. By investing in UITFs, risks are spread out across the various investments held by the pooled trust fund. Liquidity. While we generally recommend that you stick to your investment time horizon and stay invested in the UITFs for a longer period of time, UITFs are designed to allow you to redeem units of participation at any time. Affordability. UITFs generally require a much lower minimum investment amount compared to other investment alternatives. Better earnings potential. Greater earnings potential is achieved without having to invest large sums of money. There are opportunities for potentially higher returns due to possible marked-to-market gains on top of accrued income from investments. UITFs provide access to financial instruments not readily available to retail investors. Exempt from reserve requirements. UITFs are not subject to reserve requirements imposed on bank deposits. Thus, your fund's earning potentials are maximized. Professional fund management. Participating in the UITFs allows you to gain access to the expertise and services of seasoned fund managers who are able to actively monitor the markets for possible investment opportunities and manage the risks for you. Transparency. Trust entities are required to publish the UITF price at least weekly, allowing investors to compare investment performance of various fund managers. Regulated product. The management and administration of UITFs by Trust entities are governed by the Bangko Sentral ng Pilipinas (BSP). Thus, aside from the yearly triple audit conducted to BDO Trust, each of its UITFs is subject to a separate annual audit by an independent auditor that is acceptable to the BSP. The results of such audit may be made available upon your request. In addition, each UITF is required to have a BSP accredited third party custodian, who is tasked with safekeeping the securities of the UITF and performing independent marking-tomarket of such securities. All these safeguards redound to the protection of the UITF investors. Documentation Confirmation of Participation ( COP) Omnibus Participating Trust Agreement Product Type Trust Arrangement and not a Deposit PDIC Coverage Not insured with PDIC Yield/Returns Per BSP regulations, no indicative yields shall be quoted nor guaranteed to participants. Historical yields shall be used purely for reference only and should not guarantee future similar results. Income or loss is for the account of the investor. Valuation Method Mark-to-Market valuation Investment Outlets Bank deposits Securities issued by or guaranteed by the Philippine government, or by the Bangko Sentral ng Pilipinas Tradable securities issued by the government of a foreign country, any
political subdivision of a foreign country or any supranational entity Exchange-listed securities Marketable securities traded in an organized exchange Loans traded in an organized market Financial derivatives instruments solely for the purpose of hedging risk exposure of existing investments of the Fund Investment Diversification Strategy 15% exposure limit to any entity and its related parties. This limit does not apply to: 1) non-risk assets as defined by the BSP (e.g. government securities) ; and 2) exchange traded equity security which is included in an index and tracked by the UITF, the exposure limit of which shall be its actual benchmark weighting or 15%, whichever is higher. Safekeeping of Securities Done by a BSP-accredited 3rd party custodian NAVPU availability Released every banking day at 4:00 p.m. for money market funds and 7:00 p.m. for the rest of the UITFs. May be obtained through: 1. 2. 3. 4. 5. www.bdo.com.ph Type SMAC(space)NAV and send to 2966 (Smart and Globe at P2.50/text, Sun at P2.00/text) BDO Phonebanking - dial 631-8000 www.uitf.com.ph Also published once a week in the BusinessWorld newspaper.
Reserves, Bank SBL and DOSRI limits Exempted Annual Audit Quadruple Audits: BSP Audit, External Audit, Internal Audit plus External Audit for each UITF Reports Periodic reports are available at BDO TIG, BDO Branches and at the BDO website (www.bdo.com.ph)
volatile or risky. Therefore, you should determine the length of time you can afford to keep your funds invested and the amount of risk that you are willing to take to achieve your desired returns. The BDO Money Market Funds (Peso and Dollar) are suitable for investors who have moderate risk appetite and who value capital preservation and therefore prefer a short-term investment horizon. The BDO Peso Fixed Income Fund, BDO GS Fund and BDO Bond Funds (Peso and US Dollar) are also suitable for investors who are moderate and who have longer investment time horizons for investing in bonds and fixed income securities. The BDO Peso Balanced Fund and the BDO Equity Fund are suitable for investors who have balanced and aggressive risk appetites respectively, and who understand the potential rewards and the risks of investing in equity markets and who are capable of staying invested for a long time. Your fund managers invite you to review the product descriptions of the various BDO UITFs in this website. Thereafter, we invite you to visit any of our branches where prior to investing, our UITF marketing personnel will conduct a Client Suitability Assessment (CSA) to determine which UITF matches your investment objectives, risk tolerance, investment time horizon, preferences and experiences. We are certain that there will be one or more UITF/s that will provide the solution to your investment objective/s given your circumstances in life.