BDO boosts overseas investment opportunities

BDO Unibank has expanded its investment offerings with the launch of the BDO Global Equity Index Feeder Fund, a dollar-denominated unit investment trust fund (UITF) that gives Filipino investors exposure to international equity markets through a professionally managed and diversified portfolio.

The fund is structured as an equity feeder fund that seeks capital growth and income by investing primarily in a global collective investment scheme tracking the MSCI World Index. 

Covers large and mid-cap companies

The index covers large- and mid-cap companies across 23 developed markets. At least 90 percent of the fund’s assets are allocated to the target global fund, which holds a diversified mix of international companies.

UITFs are pooled investment products managed by banks or trust entities. Funds from multiple investors are combined and invested in assets such as equities, bonds, or money market instruments. Investors purchase units of participation rather than individual securities, allowing access to professional fund management and diversification even with relatively modest capital.

Carries exposure to market volatility

Managed by the BDO Trust and Investments Group, the fund is designed for investors with balanced risk tolerance seeking long-term growth from global equities. However, it carries exposure to market volatility, foreign exchange fluctuations, and country-specific risks.

Industry data indicate the fund has delivered approximately 19.0 percent year-on-year returns, with other figures showing around 21.2 percent one-year returns, placing it among strong performers within the global equity UITF category.

The fund also aims to remain accessible to investors, requiring a minimum investment of $500 and charging a relatively low 0.50 percent annual trust fee compared with similar products.