The Bangko Sentral ng Pilipinas (BSP) has revised its investment regulations to allow greater participation by overseas Filipino workers (OFWs) in retirement-focused funds, a move aimed at strengthening the country’s private pension system and capital markets.
In a policy update, the BSP lifted the 10 percent non-resident ownership cap for Personal Equity and Retirement Account (PERA) and Unit Investment Trust Funds (UITFs), enabling these funds to invest in BSP-issued securities. Previously, non-residents — including OFWs — were restricted from owning more than 10 percent of a UITF’s total assets if the fund invested in central bank instruments.
The exemption applies specifically to UITFs accredited by the BSP as PERA funds, aligning with efforts to broaden investment options for Filipinos abroad. Currently, 9 out of 13 PERA-UITFs exceed the previous non-resident threshold and had been barred from accessing BSP securities.
UITFs, managed by banks and trust institutions under BSP oversight, pool capital from retail investors to create diversified portfolios, similar to mutual funds regulated by the Securities and Exchange Commission.
The BSP said the regulatory easing supports long-term retirement savings, promotes financial inclusion, and enhances market depth by encouraging broader participation in domestic financial instruments.
Thus far, some P491 million have been invested as PERA contributions and another P908 billion have been reported as aggregate investments in UITFs.
