The EW PERA Peso Intermediate Term Bond Fund is a bond fund for your retirement savings that aims to grow your money through medium-term Philippine bonds, with the tax advantages of a PERA account. Here's what it holds, who it suits, and how it works on DragonFi.
It's a PERA UITF, a Unit Investment Trust Fund built specifically for a Personal Equity and Retirement Account (PERA). It aims to earn higher returns than cash or money market funds by investing in medium-term, peso-denominated bonds. It is managed by EastWest.
What does it invest in?
The fund invests in a diversified portfolio of peso-denominated bonds issued by the Philippine government, its agencies, and local corporations, with a medium-term maturity focus. This intermediate-term approach aims to capture more yield than a money market fund while keeping interest rate risk in check.
Who is this fund for?
This fund may suit you if you:
- Are saving for retirement through a PERA account
- Want more growth potential than a money market fund, with moderate risk
- Are investing for the medium term
- Want a balanced fixed income option within your PERA
What's the risk level?
This is a moderate-risk fund. Its value can move with interest rates, dipping when rates rise. As a medium-term bond fund, it carries more interest rate sensitivity than a money market fund, but less than a long-term bond fund. Returns are not guaranteed.
Is this a PERA or Regular fund?
This is a PERA fund, held inside a Personal Equity and Retirement Account. PERA comes with meaningful tax advantages: a 5% tax credit on your yearly contributions, tax-free growth on your earnings, and tax-free withdrawals once you reach age 55 and have contributed for at least five years. Because of these tax features, a PERA fund can potentially deliver higher net returns than the same type of fund held in a regular account.
What are the fees?
Like all UITFs, this fund charges a 1% per annum trust fee, already deducted from the fund before the daily price is calculated, so you don't pay it separately. Fees can change over time, so for the exact current trust fee, check this fund's page in the DragonFi app.
What's the minimum investment?
You can start investing in this fund for as low as ₱2,000 on DragonFi, and you can add to it any time.
How do I invest in or add to this fund?
You can invest in or top up this fund directly in the DragonFi app, within your PERA account. For the full steps, the daily cut-off time, and how your buy-in price (NAVPU) is set, see the "How to invest in a fund" article by DragonFi.
How do I sell or redeem it?
You can redeem from this fund in the app, but the money needs to stay in your PERA account. Keep in mind that PERA has its own withdrawal rules: withdrawing before age 55 or before completing five years of contributions may mean giving up some of the tax benefits. For how redemptions and PERA withdrawals work, see DragonFi's PERA articles.
How long does it take to receive the money after I sell?
It takes 1 to 2 business days for the money to be credited to your account after selling the fund.
Where do I see the current NAVPU and returns?
The live price (NAVPU) and the latest returns are always shown on this fund's page in the DragonFi app. We don't list those figures here because they change every day, so the app is your most up-to-date source.
Good to know
- A middle-ground bond fund. It aims to earn more than a money market fund while staying less volatile than a long-term bond fund.
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Higher minimum. EastWest funds start at ₱2,000, slightly higher than most funds on DragonFi.
Access the fund page here:
EW PERA Peso Intermediate Term Bond Fund | DragonFi
This fund is not a deposit and is not insured by the Philippine Deposit Insurance Corporation (PDIC). Returns are not guaranteed. The fund's price (NAVPU) can rise and fall, so you may get back less than you invested, and past performance is not indicative of future results.