BSP expands investment options for OFWs

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has updated its regulations to allow more overseas Filipinos to invest in central bank securities through retirement funds, expanding their access to diversified and secure investment options.

In a recent issuance, the BSP exempted Personal Equity and Retirement Account (PERA) unit investment trust funds (UITFs) from the 10-percent non-resident ownership limit that previously restricted their ability to invest in BSP securities.

Non-residents are generally barred from owning BSP securities or debt instruments issued by the central bank to manage liquidity in the financial system.

Previously, UITFs could invest in these securities only if non-resident participation in the fund did not exceed 10 percent.

With the new rule, UITFs accredited by the BSP as PERA-UITFs are no longer subject to this restriction, allowing more overseas Filipinos to participate.

“At present, nine out of 13 PERA-UITFs exceed the 10 percent non-resident ownership limit, barring them from investing in BSP securities,” the central bank said. “The change would allow them to diversify their portfolio.”

UITFs, which are managed by banks and trust companies under BSP supervision, pool funds from multiple investors to create diversified portfolios accessible even to small investors. UITFs also function similarly to mutual funds, which are managed by investment companies and regulated by the Securities and Exchange Commission.

The BSP said the regulatory amendment aligns with its ongoing efforts to strengthen financial inclusion and promote long-term financial security for Filipinos, both at home and abroad.

“The move reflects the BSP’s continued effort to promote financial health. It helps Filipinos, both at home or abroad, build secure and sustainable retirement savings. It also helps develop the country’s private pension system and strengthens domestic capital markets,” the BSP added.

Based on central bank data, voluntary retirement contributions rose by 24 percent to P491.39 million in 2024 from P396.31 million in 2023.

The number of PERA contributors stood at 5,912 as of December 2024, 6.4 percent higher than the 5,555 a year ago.

Broken down, 4,211 employed people contributed P341.75 million to the fund as of end-2024, followed by 789 overseas Filipino workers with P82.25 million and 912 self-employed people with P67.39 million.