The Bangko Sentral ng Pilipinas (BSP) has updated its rules to give more overseas Filipinos investment options. Personal Equity and Retirement Account (Pera) Unit Investment Trust Funds (UITFs) are now exempt from the non-resident ownership rule that limited their BSP securities investments.
Non-residents may not own BSP securities, which are central bank-issued debt. Previously, UITFs could invest in these only if non-residents owned less than 10 percent of the fund. The new rules exempt BSP-accredited Pera-UITFs from that limit.
At present, nine out of 13 Pera-UITFs exceed the 10 percent non-resident ownership limit, barring them from investing in BSP securities. The change would allow them to diversify their portfolio.
UITFs, which are managed by banks and trust companies and regulated by the BSP, pool funds from individual investors to create diversified portfolio, even for those investing in small amounts. They are similar to mutual funds, which are managed by investment companies and regulated by the Securities and Exchange Commission.
The move reflects the BSP’s continued effort to promote financial health. It helps Filipinos, both at home or abroad, build secure and sustainable retirement savings. It also helps develop the country’s private pension system and strengthens domestic capital markets. PR