UITFs were introduced in the Philippine Market by various trust entities in 2005, after the Bangko Sentral ng Pilipinas (BSP) issued Circular 447 in September 3, 2004. The Circular, jointly crafted by the BSP and trust practitioners, was designed to align the operation of pooled funds under management by trust entities with international best practices and to ensure the differentiation of such pooled funds from bank deposits and other direct liabilities of financial institutions. The UITFs are also governed by BSP Circular 593, which defines the industry standards for UITF client suitability assessment and risk disclosure.
UITFs have the following distinct advantages:
Managed by experienced fund managers.
Higher returns since UITFs are fully invested as there are no reserve requirements.
Very liquid because UITFs are invested only in tradable securities which are valued at market.
Regulatory measures are in place to inform and protect investors. These are:
- Securities safekeeping and valuation by a third party custodian/s
- Audits by BSP-accredited external auditors
- Weekly publication of Net Asset Value per Unit (NAVPU) in a newspaper of general circulation
- Standardized UITF training program for sales personnel
- Quarterly reports to participants required
Investments in the specific UITFs are evidenced by a Participating Trust Agreement and a Confirmation of Participation. These document the proportionate beneficial interest of each participant in the UITF.
Valuation of the UITF is based on the marked-to-market NAVPU computed every banking day. For BDO UITFs, the NAVPU is available after 4:00 pm for the money market funds and after 7:00 pm for the bond, balanced and equity funds. It is accessible via phonebanking and text daily. For phonebanking, dial (632) 631-8000 and follow the voice instructions. For text (available after 8:00 pm for all funds), type SMAC<space>NAV and send to 2966 (P2.50/text for Smart and Globe; P2.00/text for Sun).
The Net Asset Values (NAV) of the UITFs are net of management fees, which range between 0.5% and 1.0% p.a. of NAV. They are also net of custodianship fees, external audit fees and financial information providers' fees, which together amounts to no more than 0.1% p.a. of Average Daily NAV.
Based on the NAVPU, acceptances and notices of redemption of participation in the UITF are serviced by BDO Branches on or before 11:30 am on a banking day for money market funds and on or before 12:00 noon for the remaining funds.
(source: www.bdo.com.ph)
UITFs have the following distinct advantages:
Managed by experienced fund managers.
Higher returns since UITFs are fully invested as there are no reserve requirements.
Very liquid because UITFs are invested only in tradable securities which are valued at market.
Regulatory measures are in place to inform and protect investors. These are:
- Securities safekeeping and valuation by a third party custodian/s
- Audits by BSP-accredited external auditors
- Weekly publication of Net Asset Value per Unit (NAVPU) in a newspaper of general circulation
- Standardized UITF training program for sales personnel
- Quarterly reports to participants required
Investments in the specific UITFs are evidenced by a Participating Trust Agreement and a Confirmation of Participation. These document the proportionate beneficial interest of each participant in the UITF.
Valuation of the UITF is based on the marked-to-market NAVPU computed every banking day. For BDO UITFs, the NAVPU is available after 4:00 pm for the money market funds and after 7:00 pm for the bond, balanced and equity funds. It is accessible via phonebanking and text daily. For phonebanking, dial (632) 631-8000 and follow the voice instructions. For text (available after 8:00 pm for all funds), type SMAC<space>NAV and send to 2966 (P2.50/text for Smart and Globe; P2.00/text for Sun).
The Net Asset Values (NAV) of the UITFs are net of management fees, which range between 0.5% and 1.0% p.a. of NAV. They are also net of custodianship fees, external audit fees and financial information providers' fees, which together amounts to no more than 0.1% p.a. of Average Daily NAV.
Based on the NAVPU, acceptances and notices of redemption of participation in the UITF are serviced by BDO Branches on or before 11:30 am on a banking day for money market funds and on or before 12:00 noon for the remaining funds.
(source: www.bdo.com.ph)
