Important Notice: Updated Exposure Limits for RCBC Trust UITFs

Dear Valued Client, 

To align with the updated regulatory standards mandated by the Bangko Sentral ng Pilipinas (BSP) under Circular No. 1234, we will be updating the exposure limits of our Unit Investment Trust Funds (UITFs). In line with these changes, the UITF Declarations of Trust will be amended and will officially take effect on July 9, 2026. 

The primary change shifts the investment exposure limit to a single entity or issuer from 15% to 20% for funds invested partially or substantially in exchange-traded equity securities. This policy change gives our fund managers greater strategic flexibility to optimize the funds’ performance.

To ensure complete transparency, we have outlined the exact, word-for-word provisions of the original and amended regulations below:

I. Original Policy Provision

Exposure limits. The combined exposure of the UITF to any entity and its related parties shall not exceed fifteen percent (15%) of the market value of the UITF: Provided, That, a UITF invested, partially or substantially, in exchange traded equity securities shall be subject to the fifteen percent (15%) exposure limit to a single entity/issuer: Provided, further, That, in the case of an exchange traded equity security which is included in an index and tracked by the UITF, the exposure of the UITF to a single entity shall be the actual benchmark weighting of the issuer or fifteen percent (15%), whichever is higher.

This limitation shall not apply to non- risk assets as defined by the Bangko Sentral.

II. Amended Policy Provision (New Rule)

Exposure limits. The combined exposure of the UITF to any entity shall not exceed fifteen percent (15%) of the market value of the UITF: Provided, That, a UITF invested, partially or substantially, in exchange-traded equity securities shall be subject to a twenty percent (20%) exposure limit to a single entity/issuer: Provided, further, That any exposure exceeding fifteen percent (15%), up to the applicable twenty percent (20%) limit, shall be solely in the form of investments in exchange-traded equity securities of the same entity/issuer: Provided, finally, That, in the case of an equity index-tracking UITF, the exposure limit shall be the actual benchmark weighting of the index component issuer, which may exceed twenty percent (20%).

This limitation shall not apply to non- risk assets as defined by the Bangko Sentral.

By maintaining your account and continuing to avail of our services, you are deemed to have affirmed your consent to RCBC Trust Corporation’s latest UITF Declarations of Trust for the account/s placed with us.

For any questions or clarifications, please contact your dedicated Relationship Manager or email our team at uitfonline@rcbc.com.

Thank you for your continued trust in RCBC Trust Corporation.

*THESE UITF PRODUCTS ARE OFFERED AND MANAGED BY RCBC TRUST CORPORATION, AN AFFILIATE OF RCBC. RCBC AND RCBC TRUST CORPORATION ARE REGULATED BY THE BANGKO SENTRAL NG PILIPINAS (BSP) | https://www.bsp.gov.ph/

*THE UIT FUND IS NOT A DEPOSIT AND IS NOT INSURED NOR GOVERNED BY THE PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC).

*OUR PRODUCTS CARRY VARYING DEGREES OF RISK; SOME ARE SPECIFICALLY DESIGNED FOR AGGRESSIVE INVESTORS. WE ENCOURAGE YOU TO PERFORM YOUR OWN RISK ASSESSMENT BEFORE MAKING ANY INVESTMENT. 

*THE UIT FUND IS NOT AN OBLIGATION OF, NOR GUARANTEED, NOR INSURED BY RCBC OR ITS AFFILIATES OR SUBSIDIARIES.

*RETURNS CANNOT BE GUARANTEED AND HISTORICAL NAVPU IS FOR ILLUSTRATION OF NAVPU MOVEMENTS/ FLUCTUATIONS ONLY.

*WHEN REDEEMING, THE PROCEEDS MAY BE WORTH LESS THAN THE ORIGINAL INVESTMENT AND ANY LOSSES WILL BE SOLELY FOR THE ACCOUNT OF THE CLIENT.

*THE TRUSTEE IS NOT LIABLE FOR ANY LOSS UNLESS UPON WILLFUL DEFAULT, BAD FAITH OR GROSS NEGLIGENCE.