Unit Investment Trust Fund - BDO · The BDO Peso Bond Fund is invested in a combination of short to long-term ﬁxed income securities. The Fund aims to provide a high level of income

VER. 02-2017

Account

Unit Investment Trust Fund(For Individuals and Corporates)

Investor Profile Questionnaire (IPQ)/ Client Suitability Assessment (CSA)Client Investment Suitability (CIS)/ Investment Policy Statement (IPS)Risk Disclosure Statement (RDS)Omnibus Participating Trust AgreementSurvivorship Agreement (Optional)

BDO Trust and Investments Group

KitOpening Update

Account ID: Date:

0% - 25% of your investible funds




To keep my funds intact

To have a regular source of income

To make my funds grow

Time Deposits

Government Securities

Promissory Notes

Corporate Bonds/Commercial Papers

Others, please specify

Time Deposits

Government Securities

Promissory Notes

Corporate Bonds/Commercial Papers

Others, please specify

I want short-term investments with minimal risks because I want to keep my funds intact. I will settle for lower returns as long as my funds are safe.

I want stable returns on my investments but I am willing to take a moderate level of risk in order to earn a return higher than traditional deposit products.

I want to make my funds grow and I understand that in order to do this, I need to take on more risks by investing in a mix of fixed income securities and equities, which may require a longer investment time horizon to meet my investment goals.

invest in equities for a considerable length of time. I understand that such investments entail high risks and I am willing to ride the ups and downs of the market for potential higher long-term results.

Investor Profile Questionnaire (IPQ)/Client Suitability Assessment (CSA)

well as losses, arising from such investments/services are for the account of the investors.

This INVESTOR PROFILE QUESTIONNAIRE (IPQ)/CLIENT SUITABILITY ASSESSMENT (CSA) FORM will help you understand the type of investor you are based on your investment objectives, risk appetite, cash flow requirements and other pertinent details as an investor. While not comprehensive, a general idea of your investment preference will be a helpful guide. On the basis of the information you provide, we present/recommend to you the various investment instruments/vehicles suitable to your needs and objectives. It is important that your responses to the questions are accurate and complete. There is no right or wrong answer.

This IPQ/CSA is done prior to account opening and must be updated at least every three (3) years. In case of changes before then in your circumstances, preferences or characteristics (i.e. change in liquidity needs, risk tolerance, tax status, number of dependents, wealth), you should request for a new CSA to be undertaken by BDO to determine and evaluate your new risk profile, investment objectives and other pertinent requirements. If you do not notify BDO of such changes, it will be deemed a waiver of your right to a new CSA for the prescribed period.

(i.e. education of children, travel, retirement etc.)

Name of Profiled Client (Primary Account Holder) Amount You Intend To Invest?

( ) Check the best answer for you: ( ) Check the best answer for you:

1. What do you want to achieve from this investment?

2. This amount you intend to invest represents:

3. You see yourself needing these funds

4. You are more comfortable with investments that primarily provide

5. Which among the following financial instruments do you have knowledge of or basic awareness of?

6. Which among the following financial instruments are you currently invested in or had actual experience in terms of investments?

7. As an investor, you would describe yourself as:

Anytime

Within a year

Over a year to three (3) years

More than three (3) years

safety of funds, returns are secondary only

low returns with a little risk

moderate returns with moderate risks

high returns with high risks

Stocks/Equities

Mutual Funds/UITFs

Foreign Currency Swaps

Hedged Instruments

Preferred Shares

Derivatives

Stocks/Equities

Mutual Funds/UITFs

Foreign Currency Swaps

Hedged Instruments

Preferred Shares

Derivatives

1

2

3

4

3

2

1

1

2

3

4

1

2

3

4

1

4

Client’s Score: _________________2

3

3

2

4

1

Score Score

Where Do You Intend To Use The Fund?

Account Name Account ID

Very experienced - Highly diversified investment portfolio, investments in major foreign currencies are noted (i.e. US Dollar and Euros), considerable presence of high-risk investment products/outlets, may

Fairly experienced - Investments are diversified with a balance of equities and fixed income, including bonds and government securities. High-risk investments still account for a small portion of the investment portfolio.

Little experience - Has exposure to term deposits and money market placements, minimum investments in stocks/equities or limited to Initial

low-risk instruments.

No experience - Excess funds are mainly parked in bank savings accounts.

Important Notes:

9. How would you rate yourself as an investor?

Type Score General Investment Approach

Conservative less than 8 points

Invests primarily in bank deposits

Moderate 8 – 14 points Invests primarily in money market instruments, prime lending and/or bonds

Balanced 15 – 21 points Invests in a mix of fixed income securities and equities

Aggressive 22 – 27 points Invests majority of its portfolio in equities and may also invest in structured products and/or derivatives

Very important – I have very limited funds for investments, thus, my financial flexibility is very erratic. Sudden withdrawals should be easy to manage. Investments should be limited to short-term fixed income products that provide a steady income stream.

Modestly important - I only have modest savings for investments and these may have to be used for future unforeseen expenses. Thus, losses must be avoided. Ideal investments would be the more conservative and stable fixed-income products with short-term investment horizon but may have a sprinkling of equity funds for growth purposes.

Slightly important - I have substantial excess funds for investments, tight cash flow is not expected in the near or medium-term. My liquidity position allows me to invest in more aggressive products that can provide better yields but may require a longer investment time horizon to weather the ups and downs of the market.

No importance

1

2

3

4

8. How important is liquidity for this particular investment?

VER. 01-2016

A. For clients who scored 2 points in item 1, explain the digerence between pooled funds and segregated portfolios or direct investments.

B. For clients who scored 1 point in item 4, reiterate the digerence of bank deposits vs. investments.

C. Ensure that the client’s answer in item 3 (investment time horizon) is aligned with his/her answer in item 8 (liquidity requirements). If not, clarify/discuss further the questions/answers with the client.

D. Ensure that the client’s answers in items 5 (knowledge of investments) and 6 (investment experience) are aligned with his/her answer in item 9 (self-rating as an investor). If not, clarify/discuss further the questions/answers with the client.

Client Investment Suitability (CIS)/Investment Policy Statement (IPS)


designed to match specific investor needs, tolerance for risk and the length of time the investors intend to be invested.

BDO Peso Money Market FundMinimum Investment : PHP 100,000.00Minimum Holding Period : NoneEarly Redemption Fee : NoneDealing Period : Settlement Period : After 4:00 p.m. on the same banking day the notice of redemption is receivedTrust Fee : 0.50% p.a.

BDO GS Fund (formerly EPCIB GS Fund)Minimum Investment : PHP 100,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 0.50% of Original Participation AmountDealing Period : Settlement Period : One (1) banking day after notice of redemption is receivedTrust Fee : 1.00% p.a.

The BDO Peso Money Market Fund is invested in low-risk fixed income securities with a portfolio weighted average life of not more than one (1) year. The Fund aims to preserve capital and generate income although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with moderate risk appetite who are looking for safe and liquid investments with yields relatively higher than those of savings and time deposit accounts. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for at least six (6) months.

The BDO GS Fund is invested in a diversified portfolio consisting of selected government securities that can provide higher yields. The Fund aims for capital preservation and income generation although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with moderate risk appetite who are looking for investments that have moderate risks. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for at least three (3) years.

I. After an assessment made through the IPQ/CSA and based on the discussion with the client/s, the following marked UITF/s are duly recommended:

BDO Peso Bond Fund (formerly BDO Peso Fixed Income Fund)*Minimum Investment : PHP 10,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 0.50% of Original Participation AmountDealing Period : Settlement Period : One (1) banking day after notice of redemption is receivedTrust Fee : 1.00% p.a.

The BDO Peso Bond Fund is invested in a combination of short to long-term fixed income securities. The Fund aims to provide a high level of income with preservation

*The BDO Peso Fixed Income Fund was renamed as the new BDO Peso Bond Fund e]ective February 10, 2017.

of capital and maintenance of liquidity although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with moderate risk appetite who are looking for higher yields and are willing to take the attendant risks that come with portfolios that may have investments with longer tenors. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for at least three (3) years.

BDO Peso Balanced FundMinimum Investment : PHP 10,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 0.50% of Original Participation AmountDealing Period : Settlement Period : Four (4) banking days after notice of redemption is receivedTrust Fee : 1.00% p.a.

Branch opening until cut-o] time of 2:30 p.m. for both acceptances and notices of redemptions



The BDO Peso Balanced Fund is invested primarily in equities and in short to long-term fixed income securities. The allocation for equity securities shall be between 40% to 60% of the portfolio or any other allocation range that may be prescribed by the Trust O^cers Association of the Philippines (TOAP) in consultation with the regulatory authority/ies. The Fund aims to achieve capital appreciation over the medium-term although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with balanced risk appetite who are aware of the opportunity for high yields that portfolios with stock market investments may provide but are also knowledgeable of the possibility of capital losses that such investments may entail. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for more than three (3) years.

BDO Equity Index FundMinimum Investment : PHP 10,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 0.50% of Original Participation AmountDealing Period : Settlement Period : Four (4) banking days after notice of redemption is receivedTrust Fee : 1.00% p.a.


The BDO Equity Index Fund is a peso-denominated index-tracker equity fund. The Fund aims to provide investors with a total return which reflects the return of the Philippine Stock Exchange Composite Index (PSEi) by investing in a diversified portfolio of stocks that so far as practicable consists of the component companies of the PSEi. The Fund aims to achieve capital appreciation over the long-term although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with aggressive risk appetite and who seek potentially higher return through stock market investments but are aware of the possibility of capital losses that such investments may entail. In order to minimize risk and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for more than three (3) years.

VER. 02-2017

The BDO Peso Bond Fund is invested in a combination of short to long-term fixed income securities. The Fund aims to provide a high level of income with preservationof capital and maintenance of liquidity although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

VER. 02-2017

BDO Sustainable Dividend FundMinimum Investment : PHP 10,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 1.00% of Original Participation AmountDealing Period : Settlement Period : Four (4) banking days after notice of redemption is receivedTrust Fee : 1.25% p.a.

BDO Focused Equity FundMinimum Investment : PHP 10,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 1.00% of Original Participation AmountDealing Period : Settlement Period : Four (4) banking days after notice of redemption is receivedTrust Fee : 1.50% p.a.

BDO Dollar Money Market FundMinimum Investment : US$ 2,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 0.50% of Original Participation AmountDealing Period : Settlement Period : After 4:00 p.m. on the same banking day the notice of redemption is receivedTrust Fee : 0.50% p.a.

The BDO Sustainable Dividend Fund is invested in a portfolio of attractively priced stocks with sustainable dividend yields listed in the Philippine Stock Exchange. The Fund aims to achieve capital appreciation over the long-term although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with aggressive risk appetite who seek potentially higher returns through stock market investments but are also aware of the possibility of capital losses that such investments may entail. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for more than three (3) years.

The BDO Focused Equity Fund is invested in a concentrated portfolio of exchange-listed stocks, the selection of which shall be determined based on operational performance, valuation and market sentiment. The Fund aims to pursue capital growth over the long-term although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.


The BDO Dollar Money Market Fund is invested in low-risk fixed income securities with a portfolio weighted average life of not more than one (1) year. The Fund aims to preserve capital and generate income although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with moderate risk appetite who are looking for safe and liquid investments with yields relatively higher than those of US Dollar time deposit accounts. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for at least

six (6) months.

BDO Equity Fund (formerly EPCIB Equity Fund)Minimum Investment : PHP 10,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 1.00% of Original Participation AmountDealing Period : Settlement Period : Four (4) banking days after notice of redemption is receivedTrust Fee : 1.00% p.a.

The BDO Equity Fund is invested in a selection of exchange-listed equities. The Fund aims primarily for capital growth over the medium to long-term although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.


Branch opening until cut-o[ time of 2:30 p.m. for both acceptances and notices of redemptions



BDO Dollar Bond FundMinimum Investment : US$ 2,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 0.50% of Original Participation AmountDealing Period : Settlement Period : Three (3) banking days after notice of redemption is receivedTrust Fee : 0.75% p.a.

The BDO Dollar Bond Fund is invested in higher yielding short to medium-term bond investments and other similar fixed income securities with a portfolio weighted average life of more than one (1) year. The Fund aims for capital preservation and income generation although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with moderate risk appetite who are looking for higher yields and are willing to take the attendant risks due to the medium-term assets the Fund may have. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay invested in the Fund for at least three (3) years.


BDO ESG Equity FundMinimum Investment : PHP 10,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 1.00% of Original Participation AmountDealing Period : Settlement Period : Four (4) banking days after notice of redemption is receivedTrust Fee : 1.00% p.a.


The BDO ESG Equity Fund is substantially invested in listed companies which the Trustee believes to exhibit good environmental, social and governance (ESG) practices. The Fund aims for long-term capital appreciation over the long-term although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

This Fund is suitable for individual and corporate investors with aggressive risk appetite who seek potentially higher returns through stock market investments but are also aware of the possibility of capital losses that such investments may entail. In order to minimize risk and maximize earning potential, participants/trustors are recommended to stay in the Fund for more than three (3) years.

The BDO ESG Equity Fund is substantially invested in listed companies which the Trustee believes to exhibit good environmental, social and governance (ESG) practices.The Fund aims for capital appreciation over the long-term although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and not deposit accounts.

VER. 02-2017

BDO Medium Term Dollar Bond Fund (formerly EPCIB US Dollar Fund)Minimum Investment : US$ 2,000.00Minimum Holding Period : Thirty (30) calendar daysEarly Redemption Fee : 1.00% of Original Participation AmountDealing Period :Settlement Period : Three (3) banking days after notice of redemption is receivedTrust Fee : 1.00% p.a.

The BDO Medium Term Dollar Bond Fund is invested in higher yielding medium to long-term bond investments and other similar fixed income securities. The Fund aims forcapital preservation and income generation over the medium-term although principal and returns are not guaranteed by the trustee as UITFs are trust agreements and notdeposit accounts.

This Fund is suitable for individual and corporate investors with moderate risk appetite who are looking for higher yields and are willing to take the attendant risks due to therelatively longer-term nature of the Fund’s investments. In order to minimize risks and maximize earning potential, participants/trustors are recommended to stay investedin the Fund for at least three (3) years.

II. After reading and understanding the CIS/IPS, I/we have chosen to invest/participate in the product/s specifically identified below which I/we believe suit/s my/our investment objectives, risk appetite and cash requirements regardless of the result of my/our Investor Profile Questionnaire (IPQ)/Client Suitability Assessment (CSA). If

acknowledge that (1) I/we have completely read and fully understood the Risk Disclosure Statement (RDS) and have received a copy of the same at the time of my/our UITF account opening; and (2) the RDS and the specific risks for the UITF (shown in the Specific Risks column) that I/we have chosen have been explained to me/us by a certified UITF marketing personnel.

BDO PesoMoney MarketFund

BDO GS Fund (formerly EPCIBGS Fund)

BDO Peso Bond Fund (formerly BDO Peso Fixed Income Fund)

BDO Peso Balanced Fund

BDO Equity Fund (formerly EPCIBEquity Fund)

BDO Sustainable Dividend Fund

BDO Focused Equity Fund

BDO Dollar Money MarketFund

BDO Dollar Bond Fund

BDO Medium TermDollar Bond Fund (formerly EPCIB USDollar Fund)

*Definition of the above risks can be found in the Risk Disclosure Statement (RDS).

UITF PRODUCT SPECIFIC RISKS*DATE OF

PARTICIPATION

SIGNATURE OF

INVESTOR/S

EXPLAINED BY(Signature over Printed Name

of Certified UITF Marketing Personnel)

(IF APPLICABLE ONLY)

ADDITIONAL EXPLANATION

AND DETAILS PROVIDED BY(Indicate Date and Time of Call)

1. Interest Rate Risk

2. Market/Price Risk

3. Credit Risk/Default Risk

4. Reinvestment Risk



3. Liquidity Risk





3. Liquidity Risk





3. Liquidity Risk





3. Liquidity Risk





3. Liquidity Risk



2. Liquidity Risk

BDO Equity Index Fund


2. Liquidity Risk

BDO ESG Equity Fund


2. Liquidity Risk


2. Liquidity Risk


2. Liquidity Risk






VER. 01-2015Bank Copy

Risk Disclosure Statement (RDS)Bank Copy

Prior to making an investment through BDO Unibank, Inc. - Trust and Investments Group’s (BDO-Trust) various investment vehicles, segregated portfolios, BDO-Trust’s Unit Investment Trust Funds (UITFs) and in the securities they may invest in, BDO-Trust is hereby informing you of the risks involved in investing in such securities/investment vehicles/

nature of the securities/investment vehicles/segregated portfolios/UITFs you will be investing in and the extent of your exposure to risks; 2. read this Risk Disclosure Statement completely; and 3. independently determined that investment in said securities/investment vehicles/segregated portfolios/UITFs is appropriate for you.

There are risks involved in investing in various securities because the value of your investment may fluctuate depending on market circumstances. For UITFs in particular, the value of your investment is based on the Net Asset Value per unit (NAVpu) of the Fund, which uses a marked-to-market valuation and therefore may fluctuate daily. [The NAVpu is computed by dividing the Net Asset Value (NAV) of the Fund by the number of outstanding units]. The NAV is derived from the summation of the market value of the underlying securities of the Fund plus accrued interest income less liabilities and qualified expenses.

Your investment in any security through BDO-Trust’s various investment vehicles, segregated portfolios and in UITFs exposes you to the various types of risks enumerated and defined hereunder:

Interest Rate Risk. This is the possibility for an investor to experience losses due to changes in interest rates. The purchase and sale of a debt instrument may result in profit or loss because the value of a debt instrument changes inversely with prevailing interest rates.

Investment in fixed income securities through BDO-Trust’s various investment vehicles,

interest rates rise, bond prices fall and when interest rates decline, bond prices rise. This has an impact on direct investment in fixed income securities especially if the same is not held until it matures and in the case of UITFs, as the prices of bonds in a Fund adjust to a rise in interest rates, the Fund’s NAVpu may decline.

Market/Price Risk. This is the possibility for an investor to experience losses due to changes in market prices of securities (e.g., bonds and equities). It is the exposure to the uncertain market value of a portfolio due to price fluctuations.

The value of investments fluctuates over a given time period because of general market conditions, economic changes or other events that impact large portions of the market such as political events, natural calamities, etc. Fixed income securities, which are not held until they mature, are subject to this risk. In the case of UITFs, the Fund may gain/lose due to increase/decline in security prices, which may sometimes happen rapidly or unpredictably, hence, the NAVpu may increase to make profit or decrease to incur loss.

Liquidity Risk. This is the possibility for an investor to experience losses due to the inability to sell or convert assets into cash immediately or in instances where conversion

trading in securities with small or few outstanding issues, absence of buyers, limited buy/sell activity or an underdeveloped capital market.

Securities in various investment vehicles, segregated portfolios and UITFs may be

which may prevent the redemption of investments until they are converted to cash. Even government securities which are the most liquid of fixed income securities may be subjected to liquidity risk particularly if a sizeable volume is involved.

Credit Risk/Default Risk. This is the possibility for an investor to experience losses due to a borrower’s failure to pay the principal and/or interest in a timely manner on instruments such as bonds, loans, or other forms of security, which the borrower issued. This inability of the borrower to make good on its financial obligations may have resulted from adverse changes in its financial condition thus, lowering credit quality of the security, and consequently lowering the price (market/price risk) which, contributes

on a contract to deliver its obligation either in cash or securities.

For securities in investment vehicles, segregated portfolios and UITFs, this is the risk of losing value in the portfolios in the event that the borrower defaults on his obligation or in the case of a counterparty, when it fails to deliver on the agreed trade.

This decline in the value of the portfolios happens because the default/failure will make

Reinvestment Risk. This is the risk associated with the possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested.

INVESTMENT IN ANY SECURITY DOES NOT PROVIDE GUARANTEED RETURNS, ESPECIALLY IF IT WILL NOT BE HELD UNTIL IT MATURES AND THUS, WILL BE SUBJECT TO PREVAILING MARKET PRICES. EVEN FOR UITFS THAT ARE INVESTED IN GOVERNMENT SECURITIES AND HIGH-GRADE PRIME INVESTMENT OUTLETS, YOUR PRINCIPAL AND EARNINGS FROM INVESTMENT IN THE FUNDS CAN BE LOST IN WHOLE OR IN PART WHEN THE NAVPU AT THE TIME OF REDEMPTION IS LOWER THAN THE NAVPU AT THE TIME OF PARTICIPATION. GAINS FROM INVESTMENT IN THE UITFS ARE REALIZED WHEN THE NAVPU AT THE TIME OF REDEMPTION IS HIGHER THAN THE NAVPU AT THE TIME OF PARTICIPATION.

Investors with direct investments in securities through BDO-Trust’s various investment vehicles or segregated portfolios and UITF participants are faced with the risk of not being able to reinvest maturing securities in their investment portfolios with good or better alternative investment outlets. Similarly, UITF participants who redeem and realize their gains run the risk of reinvesting their funds in an alternative investment outlet with lower yields.

. This is the possibility for an investor to experience losses brought about by the inherent risks which the underlying investment is exposed to despite the use of a hedging instrument.

Hedging is the act of reducing the exposure of the underlying investment from its risks.

underlying investment should normally move in opposite directions.

shall remain throughout the term of the underlying investment. Should the hedging

market losses.

In case of a foreign currency-denominated security or a peso-denominated fund that is allowed to invest in securities denominated in currencies other than its base currency, the segregated portfolio and the fund are also exposed to the following risks:

Foreign Exchange Risk. This is the possibility for an investor to experience losses due to fluctuations in foreign exchange rates. The exchange rates depend upon a variety of global and local factors, e.g., interest rates, economic performance, and political developments.

It is the risk of a security to currency fluctuations when the value of investments in securities denominated in currencies other than the base currency of the security depreciates. Conversely, it is the risk of the security to lose value when the base currency of the security appreciates. The NAVpu of a peso-denominated UITF invested in foreign currency-denominated securities may decrease to incur loss when the peso appreciates.

Country Risk. This is the possibility for an investor to experience losses arising from investments in securities issued by/in foreign countries due to the political, economic and social structures of such countries. There are risks in foreign investments due to the possible internal and external conflicts, currency devaluations, foreign ownership

predict but must be taken into account in making such investments.

Likewise, brokerage commissions and other fees may be higher in foreign securities. Government supervision and regulation of foreign stock exchanges, currency markets, trading systems and brokers may be less than those in the Philippines. The procedures and rules governing foreign transactions and custody of securities may also involve delays in payment, delivery or recovery of investments.

Other Risks. Your investment in securities through BDO-Trust’s various investment vehicles, segregated portfolios and/or participation in the UITFs may be further exposed to the risk of any actual or potential conflicts of interest in the handling of in-house or related party transactions by BDO-Trust. These transactions may include own-

managed accounts.

TRUST, INVESTMENT MANAGEMENT, AGENCY, FIDUCIARY ACCOUNTS AND UITFS ARE NOT DEPOSIT ACCOUNTS BUT ARE PRODUCTS OF TRUST ENTITIES. IN AGREEING TO INVEST IN SAID PRODUCTS/PARTICIPATE IN A UITF, AN INVESTOR/PARTICIPANT IS MAKING AN INVESTMENT AND NOT A DEPOSIT AND SUCH INVESTMENT IS THEREFORE NOT INSURED NOR GOVERNED BY THE PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC). BDO’S TRUST, INVESTMENT MANAGEMENT, AGENCY, FIDUCIARY ACCOUNTS AND UITFS ARE ALSO NOT GUARANTEED NOR INSURED BY BDO UNIBANK, INC., ITS AFFILIATES OR SUBSIDIARIES. ANY INCOME/LOSS IN SUCH INVESTMENTS ARE FOR THE ACCOUNT OF THE PARTICIPANT/INVESTOR. BDO-TRUST IS NOT LIABLE FOR LOSSES UNLESS THERE IS WILFUL DEFAULT, BAD FAITH OR GROSS NEGLIGENCE ON ITS PART.


Declaration of Investor/s

I, __________________________________________________________________________________________________________ (Profiled Investor / Authorized Signatory), hereby declare that I have read, understood and personally and voluntarily accomplished the entire IPQ/CSA and that the answers I have given therein are accurate and complete. I will formally notify the BDO marketing personnel of changes to my personal or my financial situation and preferences that would change my risk profile and investment objectives. I understand that in case of such changes, it is my sole responsibility to make such notification to BDO and my failure to do so would be deemed a waiver of my right to a new IPQ/CSA.

After reading and fully understanding and evaluating the CIS/IPS, I/we voluntarily invest/participate in the BDO UITF/s which I/we believe suit/s my/our investment objectives, risk appetite and cash requirements regardless of the result of my/our IPQ/CSA. If investment in said UITFs is inconsistent with the results of my/our IPQ/CSA, I/we also hereby waive such results.

I have explained in detail and discussed with the client the 1. results of the IPQ/CSA; 2. basis of my recommendation/s; and 3. basic terms and conditions of the recommended investment instruments/vehicles specified in the CIS.

I likewise acknowledge that I have (1) advised the client to read the Risk Disclosure Statement, (2) encouraged the client/s to ask questions on matters contained in the Risk

The UITF Product the client has chosen to invest in was further explained and discussed in detail by:

Disclosure Statement, and (3) fully explained the same to the client.

I/WE LIKEWISE DECLARE THAT I/WE COMPLETELY READ, FULLY UNDERSTOOD AND RECEIVED A COPY OF THE ENTIRE RISK DISCLOSURE STATEMENT AND THE SAME WAS CLEARLY EXPLAINED TO ME/US BY A BDO UNIBANK, INC. MARKETING PERSONNEL BEFORE I/WE AFFIXED MY/OUR SIGNATURE/S HEREIN. I/WE HEREBY VOLUNTARILY AND WILLINGLY AGREE TO COMPLY WITH ANY AND ALL APPLICABLE LAWS, REGULATIONS, THE PLAN RULES, TERMS AND CONDITIONS AS MAY BE AMENDED FROM TIME TO TIME, GOVERNING MY/OUR INVESTMENT IN THE BDO-TRUST’S VARIOUS INVESTMENT VEHICLES AND SEGREGATED PORTFOLIOS, UITFS AND THE SECURITIES THEY MAY INVEST IN.

Signature of Profiled Investor/Authorized Signatory over Printed Name / Date

Signature of Co-Investor/Authorized Signatory over Printed Name**/ Date Signature of Co-Investor/Authorized Signatory over Printed Name**/ Date

Signature of Co-Investor/Authorized Signatory over Printed Name**/ DateSignature of Co-Investor/Authorized Signatory over Printed Name**/ Date

**Signature of a Co-Investor / Authorized Signatory in this portion shall mean a confirmation that the IPQ/CSA results of the Profiled Investor / Authorized Signatory shall be used as the basis/reference for the investments of the account/s opened/ to be opened.

Administered / Assessed By: Acknowledged / Reviewed By:

Signature over Printed Name/Position of Branch Personnel / Date

Name of Trust MO Date of call Time of call

For BDO Authorized Signatories Only

(If applicable only)

VER. 01-2015

NOTICE TO CLIENTS

1. INVESTMENT IN A PRODUCT/PORTFOLIO/STRATEGY WHICH IS INCONSISTENT WITH CLIENT’S CSA RESULTS

2. INVESTMENT IN A PRODUCT/PORTFOLIO/STRATEGY WITH LOWER RISKS

Choosing to avail of another investment product/portfolio/strategy which is inconsistent with one’s CSA results may result to loss of certain protections provided by regulations and exposure to higher risks. Clients in this category are required to submit a Waiver for Clients Investing in Product/Portfolio/Strategy with Higher Risks, a form available at the branches.

A client may invest in a product/portfolio/strategy falling within or below one’s stated personal investment risk profile. Any investment to be made shall be in accordance with the client’s personal investment preference and/or direction. Any and all losses, damages, costs and expenses, including loss of possible profit that may be incurred by the client as a result of the client’s decision to invest in a product/portfolio/strategy with lower risks shall be solely for his own account. The client likewise holds BDO free and harmless from any and all liabilities, claims and actions that may result from the client’s decision to invest in such product /portfolio/strategy with lower risks.

For New UITF Participants OnlyBank Copy


BDO Unibank, Inc. - Trust and Investments GroupUnit Investment Trust Funds

Omnibus Participating Trust Agreement

The undersigned Participant/s, as TRUSTOR (regardless of number), through this Omnibus Participating Trust Agreement (the “Agreement”), hereby agrees to participate in the BDO Unit Investment Trust Fund/s he has duly selected in his Client Investment Suitability (CIS) /Investment Policy Statement (IPS) (the “Fund/s”) established and administered by BDO Unibank, Inc. – Trust and Investments Group (the “TRUSTEE”).

It is expressly understood and agreed that this Agreement is subject to, and does not amend, modify or limit, the respective Fund/s’ Declaration/s of Trust (the “Plan Rules”). As such, the TRUSTOR hereby explicitly acknowledges having read and fully understood the Plan Rules pertaining to his investment/s and is amenable to all the terms and conditions contained therein. The TRUSTOR also confirms that the Fund/s is/are suitable to his investment requirements.

AGREED AND ACCEPTED:

For and in behalf of BDO UNIBANK, INC. – TRUST AND INVESTMENTS GROUP:

The TRUSTOR and the TRUSTEE likewise agree as follows:

1. Participation and Redemption – Participation in the Fund/s and redemption of such participation shall be allowed only on the basis of the net asset value of each participation unit (the “NAVPU”) determined in accordance with the applicable Plan Rules. The TRUSTOR’s investment in each Fund shall be expressed in terms of number of units of participation as appearing in the TRUSTOR’s evidence of participation.

As his participation, the TRUSTOR shall transfer, convey and pay unto the TRUSTEE, such amount representing the value of the units as indicated in the TRUSTOR’s evidence of participation, in the currency likewise indicated therein.

The TRUSTOR may redeem his participation in a Fund by surrendering his relevant evidence of participation to the TRUSTEE. Alternatively, other means of redemption notice may be honored, provided they are allowed under the TRUSTEE’s policy. Participation and redemption shall be allowed only at such frequency or at such times as provided in the applicable Plan Rules.

2. Client Suitability – Prior to the acceptance of participation, the TRUSTEE shall perform client suitability, through Client Suitability Assessment forms, which shall be acknowledged and signed by the TRUSTOR.

3. Disclosure of Risks – The TRUSTOR confirms that he has read and understood the Risk Disclosure Statement prior to executing and agreeing to be bound by this Agreement.

4. Joint Trustor Accounts – Designation of a joint account as an “AND”, “OR” or “AND/OR” account shall be made by all the holders of the said joint account who shall be co-TRUSTORS. In case of “AND” accounts, all instructions in connection with the operation of the account including redemptions therefrom must be signed or authorized by all the co-TRUSTORS. In case of “OR” or “AND/OR” accounts, any one of the co-TRUSTORS is authorized to operate the account and to effect redemptions therefrom.

5. Administration and Investment of Each Fund – Each Fund, which is the pool of trust funds from the participating trustors thereof, shall be managed, administered and invested by the TRUSTEE under the operation of the applicable Plan Rules.

6. Disclosure of Investment Outlets – The TRUSTEE shall make available for the information of any interested participant a list of prospective and outstanding investment outlets for each Fund, which list shall be updated quarterly.

7. Cooling-Off Period - The TRUSTOR shall be entitled to a period of two banking days from the date of this Agreement within which to terminate the same without penalty subject, however, to the TRUSTOR’s payment of all costs and expenses arising from such termination, if any. All losses arising from the termination shall be for the account of the TRUSTOR. For UITFs with existing early redemption fee, such fee, which accrues in favor of the relevant Fund, shall continue to apply. No penalty shall, however, be charged.

8. Disclosure - The TRUSTEE is allowed to disclose information and provide documents relating to the TRUSTOR if required or permitted to do so by: (a) Any applicable law or regulation; (b) Any central depository, clearing body, company registrar, securities exchange, courts or regulatory body; or (c) the entities managing the target fund/s, in case of feeder fund or fund of funds UITFs. The TRUSTOR likewise authorizes the transfer, disclosure and communication of any information relating to him from the TRUSTEE to, between and among offices, branches, subsidiaries, affiliates of the TRUSTEE in connection with the provision of any product or services to the TRUSTOR and/or for data processing, storage, analysis, customer satisfaction surveys and anti-money laundering law and US Foreign Account Tax Compliance Act (and other similar laws) monitoring and reporting. The TRUSTOR likewise consents to the use, processing and retention of data pertaining to him by the TRUSTEE for the purpose of this Agreement and in accordance with the law and regulations.

9. Compensation – As compensation for the TRUSTEE’s services, it shall be entitled to a compensation as provided in the applicable Plan Rules.

10. Liability of TRUSTEE – Save that attributable to the TRUSTEE’s fraud, willful default, evident bad faith or gross negligence, the TRUSTEE shall not be liable for any loss or depreciation in the value of the Fund/s or in the value of the TRUSTOR’s units of participation in the Fund/s arising from any act done by the TRUSTEE pursuant to the terms hereof and the applicable Plan Rules. Neither shall the TRUSTEE be liable for refraining to do any act where such inaction in the good faith judgement of the TRUSTEE is necessary and appropriate for the proper and advantageous administration and management of the Fund/s.

11. Complaints Handling - For any complaint regarding this product, you may (1) call our BDO phone banking hotline at 631-8000; (2) send an email to [email protected]; or (3) send an email to/call/visit your assigned Trust Marketing Officer or the Branch Manager/Marketing Officer of your servicing branch. Complaints will be immediately relayed/elevated to the proper person for handling in accordance with the TRUSTEE’s policies.

12. Amendments - This Agreement shall be deemed automatically modified as and when the Plan Rules are amended by the TRUSTEE in order to comply with applicable laws and/or Bangko Sentral ng Pilipinas regulations and for such other purposes as may be deemed proper by the TRUSTEE.

13. Term of Agreement – This Agreement shall continue and remain in force until the termination of the Fund/s in accordance with the Plan Rules or with laws or regulations then existing.

14. Reference Documents – The terms and conditions in the Plan Rules, Risk Disclosure Statement, client suitability test, the evidence of participation are incorporated herein by reference, restated herein and shall form an integral part hereof. In executing this Agreement, the TRUSTOR represents that he has carefully read and fully understood the same documents and that he has agreed to be bound by all the terms and conditions thereof. In case of inconsistencies, the provisions of the Plan Rules shall prevail over those of this Agreement and the other reference documents.

15. Evidence of Participation – Contributions of the TRUSTOR into any of the Funds shall be evidenced by a separate Confirmation of Participation or Statement of Account, which is issued by the TRUSTEE for this purpose. Any evidence of participation is non-negotiable and serves only to confirm the units purchased as of its date. The possession of the original copy of any evidence of participation does not constitute proof that the units appearing therein remain outstanding. The TRUSTOR’s outstanding units shall be based on the books and records of the TRUSTEE. The TRUSTEE reserves the right to require the prior surrender of any evidence of participation upon redemption of units. Notwithstanding the requirement for surrender, mere possession of the evidence of participation shall not be presumed or deemed as proof of non-payment of the participation.

16. The TRUSTOR acknowledges that the Fund/s are trust products and are NOT deposit accounts nor obligations of, nor guaranteed, nor insured by BDO Unibank, Inc. or its affiliates or subsidiaries and, therefore, are not insured or governed by the Philippine Deposit Insurance Corporation (PDIC). Each Fund does not carry any guaranteed rate of return and any income or loss arising from market fluctuations and price volatility of the securities held by the Fund, including investments in government securities, is for the TRUSTOR’s account. The units of participation in a Fund, when redeemed, may be worth more or less than the TRUSTOR’s initial investment. Historical performance, when presented, is purely for reference purposes and is not a guarantee of similar future results. The TRUSTEE is not liable for losses, unless there is fraud, willful default, evident bad faith or gross negligence on its part.

Signature of Trustor Over Printed Name / Date Signature of Trustor Over Printed Name / Date

Signature of Trustor Over Printed Name / Date

Signature over Printed Name of Branch Marketing Officer / Date


Signature over Printed Name of Branch Head / Date


VER. 08-2016Bank Copy


Survivorship Agreement(Optional for Joint Accounts)

WITNESS OUR HANDS this ___________________________________________________________ at _______________________________________________________________.

Agreed: For and in behalf of BDO UNIBANK, INC.–Trust and Investments Group

By:

Signed in the presence of:

___________________________________________________Signature over Printed Name of Principal/Trustor

___________________________________________________Signature over Printed Name of Principal/Trustor

__________________________________________________Signature over Printed Name of Principal/Trustor

_____________________________________________________________________________Signature over Printed Name/Position of Branch Personnel

____________________________________________________________________________

_____________________________________________________________________________ ____________________________________________________________________________

VER. 01-2016

We, the undersigned, for adequate and full consideration for the transfer contemplated herein (receipt of which consideration is hereby acknowledged), hereby agree with each other and with BDO Unibank, Inc.–Trust and Investments Group (“BDO-Trust”) as Trustee/Investment Manager, in relation to the BDO-Trust accounts under Account ID No. ___________________ (the “Accounts”), as follows:

1. All moneys now or hereafter contributed or invested by us or either/any of us to the Accounts shall be received by BDO-Trust without regard to their previous ownership. Said moneys, and all earnings thereof or interest thereon, if any, shall be our joint property and shall be payable to, collectible and withdrawable by either/any of us during our joint lives and upon the death of one shall belong to and be collectible by the survivor/s.

2. BDO-Trust has the full authority to recognize the signatures of any of us in the payment, delivery or disbursement of funds or in the transaction of other business on the Accounts, including termination thereof.

3. Upon the death of one of us, receipt of the survivor (or any of the survivors) of the proceeds of the Accounts shall validly discharge BDO-Trust as to all matters regarding the Accounts.

4. Any of us may contribute and endorse for inclusion in the Accounts, checks, drafts, bills of exchange and/or other instruments for the payment of money payable or purporting to belong to any one of us.

5. We hereby hold BDO-Trust free and harmless from, and undertake to indemnify the same against, any and all liabilities, losses, claims, damages and expenses it may incur as a result of its faithful compliance with this agreement.

6. This is a joint and several agreement and is binding upon each of us, our heirs, executors, administrators and assigns. Any corporation to which substantially all the trust or fiduciary business of BDO-Trust may be transferred shall automatically be substituted in this agreement for BDO-Trust and shall be bound by the provisions hereof without need of any further act as if originally named herein.

Signature over Printed Name o

For New UITF Participants OnlyClient Copy

BDO Unibank, Inc. - Trust and Investments GroupUnit Investment Trust Funds

Omnibus Participating Trust Agreement

The undersigned Participant/s, as TRUSTOR (regardless of number), through this Omnibus Participating Trust Agreement (the “Agreement”), hereby agrees to participate in the BDO Unit Investment Trust Fund/s he has duly selected in his Client Investment Suitability (CIS) /Investment Policy Statement (IPS) (the “Fund/s”) established and administered by BDO Unibank, Inc. – Trust and Investments Group (the “TRUSTEE”).

It is expressly understood and agreed that this Agreement is subject to, and does not amend, modify or limit, the respective Fund/s’ Declaration/s of Trust (the “Plan Rules”). As such, the TRUSTOR hereby explicitly acknowledges having read and fully understood the Plan Rules pertaining to his investment/s and is amenable to all the terms and conditions contained therein. The TRUSTOR also confirms that the Fund/s is/are suitable to his investment requirements.

AGREED AND ACCEPTED:

For and in behalf of BDO UNIBANK, INC. – TRUST AND INVESTMENTS GROUP:

The TRUSTOR and the TRUSTEE likewise agree as follows:

1. Participation and Redemption – Participation in the Fund/s and redemption of such participation shall be allowed only on the basis of the net asset value of each participation unit (the “NAVPU”) determined in accordance with the applicable Plan Rules. The TRUSTOR’s investment in each Fund shall be expressed in terms of number of units of participation as appearing in the TRUSTOR’s evidence of participation.

As his participation, the TRUSTOR shall transfer, convey and pay unto the TRUSTEE, such amount representing the value of the units as indicated in the TRUSTOR’s evidence of participation, in the currency likewise indicated therein.

The TRUSTOR may redeem his participation in a Fund by surrendering his relevant evidence of participation to the TRUSTEE. Alternatively, other means of redemption notice may be honored, provided they are allowed under the TRUSTEE’s policy. Participation and redemption shall be allowed only at such frequency or at such times as provided in the applicable Plan Rules.

2. Client Suitability – Prior to the acceptance of participation, the TRUSTEE shall perform client suitability, through Client Suitability Assessment forms, which shall be acknowledged and signed by the TRUSTOR.

3. Disclosure of Risks – The TRUSTOR confirms that he has read and understood the Risk Disclosure Statement prior to executing and agreeing to be bound by this Agreement.

4. Joint Trustor Accounts – Designation of a joint account as an “AND”, “OR” or “AND/OR” account shall be made by all the holders of the said joint account who shall be co-TRUSTORS. In case of “AND” accounts, all instructions in connection with the operation of the account including redemptions therefrom must be signed or authorized by all the co-TRUSTORS. In case of “OR” or “AND/OR” accounts, any one of the co-TRUSTORS is authorized to operate the account and to effect redemptions therefrom.

5. Administration and Investment of Each Fund – Each Fund, which is the pool of trust funds from the participating trustors thereof, shall be managed, administered and invested by the TRUSTEE under the operation of the applicable Plan Rules.

6. Disclosure of Investment Outlets – The TRUSTEE shall make available for the information of any interested participant a list of prospective and outstanding investment outlets for each Fund, which list shall be updated quarterly.

7. Cooling-Off Period - The TRUSTOR shall be entitled to a period of two banking days from the date of this Agreement within which to terminate the same without penalty subject, however, to the TRUSTOR’s payment of all costs and expenses arising from such termination, if any. All losses arising from the termination shall be for the account of the TRUSTOR. For UITFs with existing early redemption fee, such fee, which accrues in favor of the relevant Fund, shall continue to apply. No penalty shall, however, be charged.

8. Disclosure - The TRUSTEE is allowed to disclose information and provide documents relating to the TRUSTOR if required or permitted to do so by: (a) Any applicable law or regulation; (b) Any central depository, clearing body, company registrar, securities exchange, courts or regulatory body; or (c) the entities managing the target fund/s, in case of feeder fund or fund of funds UITFs. The TRUSTOR likewise authorizes the transfer, disclosure and communication of any information relating to him from the TRUSTEE to, between and among offices, branches, subsidiaries, affiliates of the TRUSTEE in connection with the provision of any product or services to the TRUSTOR and/or for data processing, storage, analysis, customer satisfaction surveys and anti-money laundering law and US Foreign Account Tax Compliance Act (and other similar laws) monitoring and reporting. The TRUSTOR likewise consents to the use, processing and retention of data pertaining to him by the TRUSTEE for the purpose of this Agreement and in accordance with the law and regulations.

9. Compensation – As compensation for the TRUSTEE’s services, it shall be entitled to a compensation as provided in the applicable Plan Rules.

10. Liability of TRUSTEE – Save that attributable to the TRUSTEE’s fraud, willful default, evident bad faith or gross negligence, the TRUSTEE shall not be liable for any loss or depreciation in the value of the Fund/s or in the value of the TRUSTOR’s units of participation in the Fund/s arising from any act done by the TRUSTEE pursuant to the terms hereof and the applicable Plan Rules. Neither shall the TRUSTEE be liable for refraining to do any act where such inaction in the good faith judgement of the TRUSTEE is necessary and appropriate for the proper and advantageous administration and management of the Fund/s.

11. Complaints Handling - For any complaint regarding this product, you may (1) call our BDO phone banking hotline at 631-8000; (2) send an email to [email protected]; or (3) send an email to/call/visit your assigned Trust Marketing Officer or the Branch Manager/Marketing Officer of your servicing branch. Complaints will be immediately relayed/elevated to the proper person for handling in accordance with the TRUSTEE’s policies.

12. Amendments - This Agreement shall be deemed automatically modified as and when the Plan Rules are amended by the TRUSTEE in order to comply with applicable laws and/or Bangko Sentral ng Pilipinas regulations and for such other purposes as may be deemed proper by the TRUSTEE.

13. Term of Agreement – This Agreement shall continue and remain in force until the termination of the Fund/s in accordance with the Plan Rules or with laws or regulations then existing.

14. Reference Documents – The terms and conditions in the Plan Rules, Risk Disclosure Statement, client suitability test, the evidence of participation are incorporated herein by reference, restated herein and shall form an integral part hereof. In executing this Agreement, the TRUSTOR represents that he has carefully read and fully understood the same documents and that he has agreed to be bound by all the terms and conditions thereof. In case of inconsistencies, the provisions of the Plan Rules shall prevail over those of this Agreement and the other reference documents.

15. Evidence of Participation – Contributions of the TRUSTOR into any of the Funds shall be evidenced by a separate Confirmation of Participation or Statement of Account, which is issued by the TRUSTEE for this purpose. Any evidence of participation is non-negotiable and serves only to confirm the units purchased as of its date. The possession of the original copy of any evidence of participation does not constitute proof that the units appearing therein remain outstanding. The TRUSTOR’s outstanding units shall be based on the books and records of the TRUSTEE. The TRUSTEE reserves the right to require the prior surrender of any evidence of participation upon redemption of units. Notwithstanding the requirement for surrender, mere possession of the evidence of participation shall not be presumed or deemed as proof of non-payment of the participation.

16. The TRUSTOR acknowledges that the Fund/s are trust products and are NOT deposit accounts nor obligations of, nor guaranteed, nor insured by BDO Unibank, Inc. or its affiliates or subsidiaries and, therefore, are not insured or governed by the Philippine Deposit Insurance Corporation (PDIC). Each Fund does not carry any guaranteed rate of return and any income or loss arising from market fluctuations and price volatility of the securities held by the Fund, including investments in government securities, is for the TRUSTOR’s account. The units of participation in a Fund, when redeemed, may be worth more or less than the TRUSTOR’s initial investment. Historical performance, when presented, is purely for reference purposes and is not a guarantee of similar future results. The TRUSTEE is not liable for losses, unless there is fraud, willful default, evident bad faith or gross negligence on its part.

Signature of Trustor Over Printed Name / Date Signature of Trustor Over Printed Name / Date


Signature over Printed Name of Branch Marketing Officer / Date


Signature over Printed Name of Branch Head / Date


VER. 08-2016Client Copy

VER. 01-2015Client Copy

Prior to making an investment through BDO Unibank, Inc. - Trust and Investments Group’s (BDO-Trust) various investment vehicles, segregated portfolios, BDO-Trust’s Unit Investment Trust Funds (UITFs) and in the securities they may invest in, BDO-Trust is hereby informing you of the risks involved in investing in such securities/investment vehicles/

nature of the securities/investment vehicles/segregated portfolios/UITFs you will be investing in and the extent of your exposure to risks; 2. read this Risk Disclosure Statement completely; and 3. independently determined that investment in said securities/investment vehicles/segregated portfolios/UITFs is appropriate for you.

There are risks involved in investing in various securities because the value of your investment may fluctuate depending on market circumstances. For UITFs in particular, the value of your investment is based on the Net Asset Value per unit (NAVpu) of the Fund, which uses a marked-to-market valuation and therefore may fluctuate daily. [The NAVpu is computed by dividing the Net Asset Value (NAV) of the Fund by the number of outstanding units]. The NAV is derived from the summation of the market value of the underlying securities of the Fund plus accrued interest income less liabilities and qualified expenses.

Your investment in any security through BDO-Trust’s various investment vehicles, segregated portfolios and in UITFs exposes you to the various types of risks enumerated and defined hereunder:

Interest Rate Risk. This is the possibility for an investor to experience losses due to changes in interest rates. The purchase and sale of a debt instrument may result in profit or loss because the value of a debt instrument changes inversely with prevailing interest rates.

Investment in fixed income securities through BDO-Trust’s various investment vehicles,

interest rates rise, bond prices fall and when interest rates decline, bond prices rise. This has an impact on direct investment in fixed income securities especially if the same is not held until it matures and in the case of UITFs, as the prices of bonds in a Fund adjust to a rise in interest rates, the Fund’s NAVpu may decline.

Market/Price Risk. This is the possibility for an investor to experience losses due to changes in market prices of securities (e.g., bonds and equities). It is the exposure to the uncertain market value of a portfolio due to price fluctuations.

The value of investments fluctuates over a given time period because of general market conditions, economic changes or other events that impact large portions of the market such as political events, natural calamities, etc. Fixed income securities, which are not held until they mature, are subject to this risk. In the case of UITFs, the Fund may gain/lose due to increase/decline in security prices, which may sometimes happen rapidly or unpredictably, hence, the NAVpu may increase to make profit or decrease to incur loss.

Liquidity Risk. This is the possibility for an investor to experience losses due to the inability to sell or convert assets into cash immediately or in instances where conversion

trading in securities with small or few outstanding issues, absence of buyers, limited buy/sell activity or an underdeveloped capital market.

Securities in various investment vehicles, segregated portfolios and UITFs may be

which may prevent the redemption of investments until they are converted to cash. Even government securities which are the most liquid of fixed income securities may be subjected to liquidity risk particularly if a sizeable volume is involved.

Credit Risk/Default Risk. This is the possibility for an investor to experience losses due to a borrower’s failure to pay the principal and/or interest in a timely manner on instruments such as bonds, loans, or other forms of security, which the borrower issued. This inability of the borrower to make good on its financial obligations may have resulted from adverse changes in its financial condition thus, lowering credit quality of the security, and consequently lowering the price (market/price risk) which, contributes

on a contract to deliver its obligation either in cash or securities.

For securities in investment vehicles, segregated portfolios and UITFs, this is the risk of losing value in the portfolios in the event that the borrower defaults on his obligation or in the case of a counterparty, when it fails to deliver on the agreed trade.

This decline in the value of the portfolios happens because the default/failure will make

Reinvestment Risk. This is the risk associated with the possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested.

INVESTMENT IN ANY SECURITY DOES NOT PROVIDE GUARANTEED RETURNS, ESPECIALLY IF IT WILL NOT BE HELD UNTIL IT MATURES AND THUS, WILL BE SUBJECT TO PREVAILING MARKET PRICES. EVEN FOR UITFS THAT ARE INVESTED IN GOVERNMENT SECURITIES AND HIGH-GRADE PRIME INVESTMENT OUTLETS, YOUR PRINCIPAL AND EARNINGS FROM INVESTMENT IN THE FUNDS CAN BE LOST IN WHOLE OR IN PART WHEN THE NAVPU AT THE TIME OF REDEMPTION IS LOWER THAN THE NAVPU AT THE TIME OF PARTICIPATION. GAINS FROM INVESTMENT IN THE UITFS ARE REALIZED WHEN THE NAVPU AT THE TIME OF REDEMPTION IS HIGHER THAN THE NAVPU AT THE TIME OF PARTICIPATION.

Investors with direct investments in securities through BDO-Trust’s various investment vehicles or segregated portfolios and UITF participants are faced with the risk of not being able to reinvest maturing securities in their investment portfolios with good or better alternative investment outlets. Similarly, UITF participants who redeem and realize their gains run the risk of reinvesting their funds in an alternative investment outlet with lower yields.

. This is the possibility for an investor to experience losses brought about by the inherent risks which the underlying investment is exposed to despite the use of a hedging instrument.

Hedging is the act of reducing the exposure of the underlying investment from its risks.

underlying investment should normally move in opposite directions.

shall remain throughout the term of the underlying investment. Should the hedging

market losses.

In case of a foreign currency-denominated security or a peso-denominated fund that is allowed to invest in securities denominated in currencies other than its base currency, the segregated portfolio and the fund are also exposed to the following risks:

Foreign Exchange Risk. This is the possibility for an investor to experience losses due to fluctuations in foreign exchange rates. The exchange rates depend upon a variety of global and local factors, e.g., interest rates, economic performance, and political developments.

It is the risk of a security to currency fluctuations when the value of investments in securities denominated in currencies other than the base currency of the security depreciates. Conversely, it is the risk of the security to lose value when the base currency of the security appreciates. The NAVpu of a peso-denominated UITF invested in foreign currency-denominated securities may decrease to incur loss when the peso appreciates.

Country Risk. This is the possibility for an investor to experience losses arising from investments in securities issued by/in foreign countries due to the political, economic and social structures of such countries. There are risks in foreign investments due to the possible internal and external conflicts, currency devaluations, foreign ownership

predict but must be taken into account in making such investments.

Likewise, brokerage commissions and other fees may be higher in foreign securities. Government supervision and regulation of foreign stock exchanges, currency markets, trading systems and brokers may be less than those in the Philippines. The procedures and rules governing foreign transactions and custody of securities may also involve delays in payment, delivery or recovery of investments.

Other Risks. Your investment in securities through BDO-Trust’s various investment vehicles, segregated portfolios and/or participation in the UITFs may be further exposed to the risk of any actual or potential conflicts of interest in the handling of in-house or related party transactions by BDO-Trust. These transactions may include own-

managed accounts.

TRUST, INVESTMENT MANAGEMENT, AGENCY, FIDUCIARY ACCOUNTS AND UITFS ARE NOT DEPOSIT ACCOUNTS BUT ARE PRODUCTS OF TRUST ENTITIES. IN AGREEING TO INVEST IN SAID PRODUCTS/PARTICIPATE IN A UITF, AN INVESTOR/PARTICIPANT IS MAKING AN INVESTMENT AND NOT A DEPOSIT AND SUCH INVESTMENT IS THEREFORE NOT INSURED NOR GOVERNED BY THE PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC). BDO’S TRUST, INVESTMENT MANAGEMENT, AGENCY, FIDUCIARY ACCOUNTS AND UITFS ARE ALSO NOT GUARANTEED NOR INSURED BY BDO UNIBANK, INC., ITS AFFILIATES OR SUBSIDIARIES. ANY INCOME/LOSS IN SUCH INVESTMENTS ARE FOR THE ACCOUNT OF THE PARTICIPANT/INVESTOR. BDO-TRUST IS NOT LIABLE FOR LOSSES UNLESS THERE IS WILFUL DEFAULT, BAD FAITH OR GROSS NEGLIGENCE ON ITS PART.

Risk Disclosure Statement (RDS)Client Copy