BSP eases PERA-UITF access to BSP securities

The Bangko Sentral ng Pilipinas updated its rules to give overseas Filipinos more investment options by exempting Personal Equity and Retirement Account Unit Investment Trust Funds from the non-resident ownership cap that previously limited their ability to invest in BSP securities, the central bank said.

Under earlier rules, non-residents were barred from owning BSP securities—debt instruments the BSP issues for liquidity management—and UITFs could participate only if non-resident investors held no more than 10 percent of a fund.

The amendments carve out PERA-accredited UITFs from that 10 percent limit, broadening eligible demand for BSP securities and opening more options for overseas contributors.

Nine of the 13 PERA-UITFs currently exceed the 10 percent non-resident threshold and had been barred from BSP securities, a change that now lets them diversify their portfolios.

UITFs pool money from individual investors and are managed by banks and trust entities under BSP oversight, while mutual funds are managed by investment companies and regulated by the Securities and Exchange Commission.

PERA is the country’s voluntary retirement account framework established by Republic Act 9505, which grants a 5 percent tax credit on qualified contributions and tax-exempt investment earnings subject to conditions.

Current rules allow maximum annual PERA contributions of PHP 200,000 for locally employed and self-employed contributors and PHP 400,000 for overseas Filipinos, which translate to annual tax credits of PHP 10,000 and PHP 20,000, respectively.

By freeing PERA-UITFs from the cap, the BSP aims to bolster retirement savings participation among overseas Filipinos, deepen the private pension pillar, and support capital-market development through more flexible portfolio construction.

BSP securities are used to steer short-term market rates toward the policy rate and absorb excess liquidity, making broader fund participation relevant to monetary operations.

The central bank said the policy also supports Filipinos at home and abroad in building secure, sustainable retirement savings while strengthening domestic capital markets.