UNIT investment trust funds (UITF) issued domestically that have placements in foreign securities or funds can be accredited as Personal Equity and Retirement Account (PERA) investment products, the Bangko Sentral ng Pilipinas (BSP) said.

“The BSP clarifies that UITFs created or issued in the Philippines that may have underlying investments in foreign-issued securities or funds — such as global feeder funds or fund-of-funds — may qualify for accreditation as PERA Investment Products, subject to the existing approval process applicable to such structures,” the central bank said in a memo dated Aug. 20 signed by BSP Deputy Governor Lyn I. Javier.

The BSP said these kinds of funds can give PERA contributors more investment options.

“This, in turn, supports the capital market development objectives of the PERA Law by broadening the range of available instruments and providing additional diversification opportunities, thereby contributing to improved price formation and more efficient portfolio allocation,” the central bank said.

Launched in 2016, PERA is a voluntary fund scheme meant to supplement retirement benefits from the Government Service Insurance System or the Social Security System, as well as private employers.

Contributors aged 18 and above who have a tax identification number are allowed to open a PERA account. Self-employed and locally employed contributors can make an annual contribution of P200,000, while overseas Filipino workers can invest up to P400,000.

The PERA Law also offers incentives to contributors, such as tax exemptions and credits.

Accumulated PERA contributions climbed by 24% year on year to P491.4 million at end-2024 from P396.3 million in 2023, data from the BSP showed.

The total number of PERA contributors likewise rose by 6.4% to 5,912 at 2024’s close from 5,555 a year prior. — BVR

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