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Investment Funds - Frequently Asked Questions
 
Daily Prices | Historical Prices | Historical Rates | Monthly Performance Review
 
 
What are the BPI Investment Funds?
The BPI Investment Funds consist of several Unit Investment Trust Funds (UITFs) managed by BPI Asset Management. Each fund is a collective investment where the investible cash of numerous investors are pooled together and invested by a fund manager with the aim of achieving a specific investment objective.
 
These funds provide investors with a simple and efficient way of investing their money in a wide selection of financial instruments and securities denominated in Philippine Pesos or U.S. Dollars. At present, the funds consist of the following:
 
Tax Exempt Fund
BPI Institutional Fund
 
Peso Money Market Fund
BPI Short-Term Fund
 
Peso Bond Funds
Intermediate Term Fund
BPI Premium Bond Fund
BPI Gold Fund
Medium Term Fund
ABF Philippines Bond Index Fund
 
Peso Balanced Fund
BPI Balanced Fund
 
Peso Equity Fund
BPI Equity Fund
 
USD Bond Funds
Intermediate Term Fund
BPI Global Philippine Fund
BPI International Fund Plus
Long Term Fund
Philippine Dollar Bond Index Fund
 
USD Equity Fund
BPI Global Equity Fund
 
 
What is a Unit Investment Trust Fund (UITF)?
A UITF is an open-end trust fund denominated in pesos or any acceptable currency, which is operated and administered by a trust entity and made available by participation. A UITF uses the mark-to-market method in valuing the fund's securities.
 
What is mark-to-market?
It is a valuation method which calculates the Net Asset Value (NAV) based on the estimated fair market value of the assets of the fund based on prices supplied by independent sources. The mark-to-market value takes into account the accrued interest (and dividends, where the fund is invested in equities) plus unrealized gains or losses of the investments given their prevailing market prices. As such, the Net Asset Value Per Unit (NAVPU) may fluctuate depending on the volatility of the prices of various assets held by the fund.
 
How different is mark-to-market from an accrual valuation methodology?
Under an accrual valuation, the NAV of the fund takes into account principal and interest accruing from various investments of the fund. This method generally results in a steadily increasing NAVPU. An example of this is the valuation used by the Common Trust Funds.
  
Why is there a need to use the mark-to-market valuation?
The marked-to-market valuation provides the investor with a more accurate and fair value of his investments at any given time.
It ensures that no participant is put at a disadvantage as a consequence of new investors coming into, or of existing investors getting out of, the fund.
The marked-to-market methodology is in accordance with international best practice.
 
Do UITFs have a maturity date?
UITFs have no maturity date. You can redeem units anytime. However, if you redeem units within the minimum holding period, there is an early redemption fee. Redemptions beyond the minimum holding period will not subject you to an early redemption fee.
 
What is an early redemption fee?
An early redemption fee is a cost that the investor has to absorb on account of his redemption from the fund during the minimum holding period. Because of his early redemption, the fund manager has to similarly pre-terminate an outstanding placement of the fund in order to fund the investor's redemption. The cost, penalty, or price differential associated with the fund's pre-termination of a placement is borne by the investor who made the early redemption.
 
Are UITFs guaranteed?
No. UITFs are trust funds which do not carry any guarantee of income or of principal. They are not bank deposit products and are not guaranteed by the Bank of the Philippine Islands.
 
Are UITFs insured with the Philippine Deposit Insurance Corporation (PDIC)?
Since UITFs are not deposit products, they are not covered by the PDIC.
 
Who may invest in these BPI Investment Funds?
Any individual, company, or association with an existing BPI deposit account may invest in these Funds. However, investment in the BPI Institutional UITF shall be limited to tax-exempt institutions duly supported by a Bureau of Internal Revenue tax-exemption letter/certificate.
 
How do I invest in these BPI Investment Funds?
You may invest in any of these Funds by opening an Investment Fund Account with the BPI Branch of your choice. You need to open one Account for the Peso-denominated funds and another Account for the US$-denominated funds. Your existing BPI deposit account in the same currency as the Investment Fund Account shall be used as your "Settlement Account." Investments into a Fund shall be debited from the Settlement Account and withdrawals from a Fund shall be credited to the Settlement Account.
 
What does a unit of participation represent?
It represents your pro-rata share of undivided ownership in a particular Fund. This means that you own a share of all the investments in the Fund rather than a specific investment in that Fund.
 
How is the Net Asset Value per unit determined?
This is based on the Net Asset Value of the Fund. For each Fund, the NAVPU is computed daily by dividing the Net Asset Value of the Fund (Total Assets less Total Liabilities) by the total number of outstanding units of participation in the Fund.
 
What is the minimum initial contribution/maintaining balance and minimum additional contribution requirements in investing in each of the funds?
   
Investment Fund
Minimum Initial Investment/
Maintaining Balance
Minimum Transaction Amount*
 BPI Short-Term Fund
PhP10,000
PhP1,000
 BPI Premium Bond Fund
PhP10,000
PhP1,000
 BPI Institutional Fund
PhP10,000
PhP1,000
 ABF Philippines Bond Index Fund
PhP10,000
PhP1,000
 BPI Balanced Fund
PhP10,000
PhP1,000
 BPI Equity Fund
PhP10,000
PhP1,000
 BPI Global Philippine Fund
US$500
US$200
 BPI International Fund Plus
US$500
US$200
 BPI Global Equity Fund
US$500
US$200
 Philippine Dollar Bond Index
US$500
US$200
 
*contribution or withdrawal
 
What will my investment earn?
You will earn whatever the Fund earns (net of applicable final taxes and trust fees), pro-rated to the number of units you own in the Fund. Earnings are reflected in the daily change in the NAVPU of the Fund. To determine the value of your investment on any given day, all you need to do is to multiply the number of units you own by the Buying Price per unit of that Fund for that day.
 
How do I compute my return on investment ("ROI")?
You may compute your absolute ROI by the following formula, where BP = Buying Price of the Fund on the day that you compute the ROI; and SP = Selling Price on the day that you invested in the Fund:
 
BP - SP
ROI =
SP
 
Each Fund's Buying Price and Selling Price are available daily at the BPI Branch where your investment is booked and right here at this website.
 
How are ROIs of UITFs stated?
Following international best practices, ROIs of UITFs are stated based on absolute yields.
  
What is an absolute yield?
An absolute yield is the actual ROI of a particular investment product during a specific time frame.
 
To illustrate:
 
1.Cost of investment is P1,000.00. After 30 days, the total market value is P1,010.00. The appreciation in value is P10.00. The absolute yield for 30 days is 1% (P10.00 / P1,000.00).
2.Cost of investment is P1,000.00. After 3 months or 90 days, the total market value is P2,000.00. The appreciation in value is P1,000.00. The absolute yield for 3 months is 100%. (P1,000.00 / P1,000.00).
 
What is an annualized yield?
An annualized yield is when an absolute yield is converted to its per annum equivalent.
 
To illustrate using the above examples:
 
1.The equivalent annualized yield is 12% p.a. (or 1% x 12 months)
2.The equivalent annualized yield is 400% p.a. (or 100% x 4 quarters)
 
Are the stated yields of time deposits or governments securities comparative to UITF yields?
They are not comparable because the yields of government securities (like Treasury Bills), time deposits and other regular bank products are stated on an annualized basis.
 
How will I know if the UITF is the right investment fund for me?
Investment Objective: What is your objective? Is it capital preservation, regular income, capital appreciation, or wealth accumulation.
Investment Horizon or Time Frame: What is your investment time frame? Are you willing to remain invested in the medium term? UITFs are medium- to long-term investments because there are short-term volatility or price fluctuations.
Liquidity Requirements: Are you expecting to withdraw the periodic (e.g., monthly) earnings of your UITF investment? If so, please bear in mind that some periods may show high earnings while other periods may show low earnings or even unrealized losses for that period, in which case, there will be no earnings to withdraw for that period.
Risk Profile: What is your risk appetite? Are you willing to take risk in exchange for higher returns or are you risk averse and do not want to take any risk at all? It is important to bear in mind that the higher the risk, the higher the returns.
 
What are the risks involved in investing in a UITF?
Market risk is the risk that the value of the client's investment will decline because of rising interest rates, and hence, lower UITF unit prices. Investors may incur unrealized losses over short periods due to fluctuations in the fund's prices in response to market movements, and over longer periods during market downturns.
Liquidity risk is the risk that a fund manager may be unable to fund redemptions as they come because of an inability to liquidate the fund's assets or obtain adequate funding or that it cannot easily unwind or offset specific exposures without significantly lowering market prices because of inadequate market depth or market disruptions. To minimize this risk, UITFs have very liquid and highly marketable securities in their portfolio to meet redemptions.
Credit risk is the risk of default which means that the issuer is unable to make interest and/or principal payments. Because UITFs invest primarily in government securities, credit risk is almost remote.
 
How do the risks involved in investing in UITFs compare with the risks of other investment products?
 
Comparative Risks of Investment Products
Risk
UITF
Time Deposit
Government Security
Market Risk
Yes
None
Yes, if held for trading;
none, if held up to maturity
Liquidity Risk
Yes
Yes
Yes
Credit
Yes
Yes
Yes
 
What type of UITF should I invest in?
There are different types of UITFs in the market. There are money market, bond, equity, and balanced funds. These funds carry varying degrees of risks. To help you determine the right BPI UITF for you, please go to your UITF sales practitioner in your BPI branch.
 
How do I add units of participation in a fund?
To add to your existing units of participation in a Fund, you simply purchase more units at the applicable selling price per unit at your branch of account.
 
How do I withdraw from my investment account?
You may withdraw from your investment account anytime during trading hours at the branch where the investment account is maintained. Simply determine the amount you want to withdraw based on the applicable Buying Price per unit. Partial withdrawals must, however, be for a minimum of PhP10,000 for the Peso Funds and $500 for the U.S.$ Funds.
 
What are the related investment fees / charges involved?
In consideration of the services rendered, a trust fee shall be collected from each UITF on every valuation date based on the net asset value of the Fund, as follows:
 
     BPI Short-Term Fund
0.75% p.a.
     BPI Premium Bond Fund
1.50% p.a.
     BPI Institutional Fund
0.75% p.a.
     BPI Gold Fund
1.50% p.a.
     BPI Balanced Fund
1.50% p.a.
     BPI Equity Fund
1.50% p.a.
     BPI Global Philippine Fund
1.00% p.a.
     BPI International Fund Plus
0.75% p.a.
     BPI Global Equity Fund
1.50% p.a.
     ABF Philippines Bond Index Fund
    0.08% p.a.*
     Philippine Dollar Bond Index Fund
  0.25% p.a.
 
*ABF Philippines Bond Index Fund is also subject to a management fee of 0.252% p.a.
 
How can I open an Investment Fund Account?
You may open one by visiting the BPI branch nearest you (in Metro Manila, Luzon, Visayas, or Mindanao) and by selecting from among the BPI Investment Funds.
 
What is the evidence of my investment in the Fund(s)?
For every investment you make, you will be issued a Transaction Advice showing the number of units you have purchased in the Fund. The number of units you buy is determined by dividing the amount of your investment by the Fund's applicable Selling Price per unit for the day.
 
What do you mean by "Buying Price" and "Selling Price"?
These prices are from the point of view of the Fund. If you are investing in a Fund, and each time you make additional investments in the Fund, you are actually buying units, and the Fund is selling you units. Thus, the Fund's Selling Price is used. Conversely, if you are withdrawing from a Fund, you are actually selling units, and the Fund is buying your units. Thus, the Fund's Buying Price is used.
 
Will I receive any reports on my investments?
Yes. Aside from the Transaction Advice which will be mailed or delivered to your registered address, a quarterly Investment Fund Statement indicating your outstanding investments per Fund and detailing all of your transactions in each Fund during the quarter will be mailed or delivered to your registered address.