BPI UITF Fees will go UP significantly.

[averagedude]

Effective Feb 1, 2024, BPI will increase its annual trust fees for the following funds:

Fund
From
To
Change

BPI Philippine Equity Index Fund
1.00%
1.50%
+0.50%

BPI Philippine Consumer Equity Index Fund
1.00%
1.50%
+0.50%

BPI Philippine Infrastructure Equity Index Fund
1.00%
1.50%
+0.50%

BPI Philippine High Dividend Equity Fund
1.50%
1.75%
+0.25%

BPI Equity Value Fund
1.50%
1.75%
+0.25%

Odyssey Philippine High Conviction Equity Fund
1.50%
2.00%
+0.50%

BPI Global Fund of Funds
0.75%
1.00%
+0.25%

BPI Catholic Values Global Equity Feeder Fund
0.50%
1.25%
+0.75%

BPI US Equity Index Feeder Fund (USD and PHP Class)
0.75%
1.50%
+0.75%

BPI European Equity Feeder Fund
0.75%
1.50%
+0.75%

Odyssey Asia Pacific High Dividend Equity Feeder Fund
1.10%
1.50%
+0.40%

BPI World Technology Feeder Fund
1.00%
1.50%
+0.50%

BPI Global Health Care Feeder Fund
1.00%
1.50%
+0.50%

BPI Money Market Fund
0.25%
0.50%
+0.25%

BPI Philippine Dollar Index Fund
0.25%
0.50%
+0.25%

Odyssey Peso Medium-Term Bond Fund
1.00%
1.50%
+0.50%

Odyssey Peso Bond Fund
1.00%
1.50%
+0.50%

As a long-time passive investor in BPI UITFs, I am extremely disappointed in this move. The trend globally is for passive Index funds to have significantly lower fees than your actively managed funds. (Note: passive funds follow standard index weighting and doesn't try to outperform the market unlike actively managed funds). This is why there are so many low-cost ETFs that track various global market indices have very minimal fees (e.g. 0.01% to 0.10% of assets)

Well, guess what. Instead of optimizing their cost structure and pass on the savings to investors like what a well-functioning asset manager globally would do, BPI chose instead to increase its FEES for its Philippine Equity Index Fund from 1.0% to 1.50% of assets!! Note that this fund that merely track the weightings of the PSE Index and should just closely follow its returns not actively outperform it. So what am I paying 1.50% of my assets for??

This is NOT acceptable to any serious investor so I will pull out all my Philippine equity investments in BPI asap. What would you guys recommend as low-cost investment alternatives? Thanks!!

 

[strawblonde]

@averagedude This! As asset base grow, fees should go down. And on passive funds too! Sooo disappointed in BPI.

 

[averagedude]

@strawblonde Di ba?? Sobrang unacceptable. Especially considering BPI had really good profits in 2023.

 

[gust]

@averagedude Well on many fronts, BPI has been doing bad lately. Slowly moving out my accounts with them.

 

[shannmisteri]

@gust Doing bad in what aspect?

 

[averagedude]

Philippines is truly the land of middlemen. Imagine paying 1.50% of your assets for investing in a PASSIVE Index fund. So much value being sucked from your average investor for performing simple backroom transactions?? What a joke.

 

[j4c0b]

@averagedude Ang saklap pa nito - this trust fee is BPI's own fee...

Underneath this, you are still indirectly paying for the underlying etf fees .

Fuck BPI!

 

[averagedude]

@j4c0b Di ba? Borderline scam.

Their US Equity Index Feeder Fund charges 1.50% (new rate), the underlying fund is a low cost ETF (SPDR S&P500 ETF) which only charges around 0.10%….

So the actual global fund manager which does most of the work only costs 0.10% pero the middleman (BPI) who does backroom transactions to invest in ONE target fund gets 1.50%??? Doesn’t make sense. This bank is sucking investors dry and they know it.

 

[englishantebellum]

@averagedude Newbie here. Paano computation ng trust fee? Annual ba yunrg deduction?

 

[averagedude]

@englishantebellum Daily chincharge sa assets nung UITF using the daily rate nung annual trust fee (1.50%/365 days). Kaya yng daily “price” nung UITF is called a NAVPU (Net Asset Value per Unit) meaning it’s always net of fees daily.

 

[englishantebellum]

@averagedude Thanks, nakapag-add pa naman ako ng 100k php kanina. Tapos may bad news bigla.

Mukhang sa trust fee na lang mapunta

 

[nathanoj]

@averagedude Wow BPI is regressing I remember when they reduced their fees and I thought they were going down the right path. Lumiit ba sobra ang funds under management nila?

 

[averagedude]

@nathanoj Nope!

Maria Theresa Marcial, the one who apparently heads this BPI unit, said before that they see their AUM TRIPLING in 5 years. The increase in BPI UITF fees are so drastic so goodluck with that.

https://www.philstar.com/business/2...-sees-managed-funds-tripling-p3-trillion/amp/

 

[nathanoj]

@averagedude Just pure greed then tsk tsk tsk

 

[bay123]

@averagedude This is disappointing

 

[jackiegat]

@averagedude Agree. Looking for options, too.

 

[jimwoodrow]

@averagedude Will consider different options

 

[vpo3]

@averagedude Let’s go! Withdraw!

Redeem actually.

 

[averagedude]

@vpo3 Already did.

 

[vpo3]

@averagedude Thanks for posting this btw.