Unit Investment Trust Funds (UITF) Benefits
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 a 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 can 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 funds 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 managed 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 UITF 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-to-market of such securities. All these safeguards redound to the protection of the UITF investors.