PDAX Learn: What is Auto-Reinvest for Bonds on PDAX?

On PDAX, users can access government bonds such as Treasury Bills (T-Bills) through the Bonds section of the app.

T-Bills are government securities that are usually bought at a discount and paid at full value when they mature. This means users typically earn from the difference between the discounted purchase price and the amount paid at maturity.

When a government bond that you bought on PDAX matures, its maturity proceeds are  credited back to your PDAX wallet.

For some users, this is the moment they decide what to do next. They may want to keep the proceeds in their wallet, use them for another purpose, or place a new order if they want to continue participating in eligible bonds.

But placing a new order every time a bond matures can take extra steps. You would need to check what is available, review the details, and place the order again.

That is where Auto-Reinvest comes in.

With Auto-Reinvest, eligible maturity proceeds can be used for the next available eligible government bond automatically, subject to availability, allocation, and minimum amount requirements.

This can help users who want a simpler and easier way to continue participating in eligible T-Bills after maturity, while still giving them the option to turn Auto-Reinvest off before their bond matures.

Here’s how Auto-Reinvest works on Bonds on PDAX

Why use Auto-Reinvest?

To reiterate, some users may want to keep their maturity proceeds moving into another eligible T-Bill, especially if they’re looking for a more convenient way to continue participating after maturity.

Without Auto-Reinvest, they would need to manually place a new order each time an eligible bond matures.

With Auto-Reinvest, the process becomes easier: your eligible maturity proceeds can be used for the next available eligible T-Bill automatically, subject to availability, allocation, and minimum amount requirements.

This helps reduce the need to repeat the manual ordering process every time your eligible bond matures.

What is Auto-Reinvest?

Auto-Reinvest is a feature that lets your eligible bond maturity proceeds be used to automatically place an order for the next available eligible government bond.

Your maturity proceeds include your principal amount plus earned returns, minus applicable fees.

Auto-Reinvest only applies when the feature is turned on and when the bond meets the eligibility requirements. The eligible government bond must be of like kind (i.e., a government bond issued by the Republic of the Philippines with the same tenor and substantially similar indicative terms as with the previously-held government bond).

Which bonds are eligible for Auto-Reinvest?

Auto-Reinvest applies only to eligible government T-Bills sold in the Primary Market.

The Primary Market is when the Philippine Government, through the Bureau of the Treasury, issues government securities and sells them directly to eligible buyers.

Auto-Reinvest does not apply to all bonds on the PDAX app. It is available only for eligible T-bills that meet the feature’s requirements.

How does Auto-Reinvest work?

When Auto-Reinvest is turned on for an eligible T-bill, your maturity proceeds may be used to place an order for the next available eligible T-bill with the same issuer and tenor.

For example, if you hold a 91-day T-bill and Auto-Reinvest is turned on, your maturity proceeds may be used to place an order for the next available 91-day T-bill.

This new order is still subject to availability, allocation, and minimum amount requirements.

If the order is awarded, the awarded amount will be reinvested into the new T-bill. If there is any unawarded amount, it will be credited back to your wallet.

Is there a minimum amount for Auto-Reinvest?

Yes. The minimum amount for Auto-Reinvest is ₱500.

If your maturity proceeds or awarded bond amount fall below ₱500, Auto-Reinvest will not push through. In this case, your proceeds will be credited to your wallet instead.

What happens if my bond order is only partially awarded?

There may be cases where your bond order is only partially awarded.

For example, if you placed a ₱1,000 bond order but only ₱450 was awarded, the remaining ₱550 will be credited back to your wallet. Since the awarded amount is below the ₱500 minimum, Auto-Reinvest will be turned off for that bond.

When the ₱450 bond matures, its proceeds will be credited to your wallet instead of being auto-reinvested.

How do I turn on Auto-Reinvest?

You can turn on Auto-Reinvest in different ways, depending on where you are in the Bonds section of the app.

You may enable it during purchase, from your Portfolio, or from the Auto-Reinvest page under Bond Details.

1. During purchase
   • Go to Bonds on the PDAX app
   • Complete your bond purchase
   • When prompted, select Enable Auto-Reinvest
   • Confirm to activate
2. From your Portfolio
   • Go to your Portfolio
   • Select the bond under My Assets
   • Turn the Auto-Reinvest toggle on
3. From the Auto-Reinvest page
   • Open the Auto-Reinvest view from Bond Details
   • Select your bond
   • Turn the toggle on

Once enabled, Auto-Reinvest will stay active for that eligible bond unless you turn it off before maturity or the bond no longer meets the feature requirements.

Can I turn off Auto-Reinvest?

Yes. You can turn off Auto-Reinvest anytime before your bond matures.

If Auto-Reinvest is turned off, your maturity proceeds, which include your principal amount plus earned returns, will be credited to your wallet when the bond matures instead of being used to place a new order.

This gives you control over whether you want your proceeds to roll over or return to your wallet.

Will I be notified about Auto-Reinvest?

Yes. You will receive email notifications related to Auto-Reinvest updates.

You will be notified when Auto-Reinvest is turned on, turned off, successfully completed, or if it does not push through.

You will also receive an email reminder and push notification 3 days before your bond matures. This gives you time to review your choice and decide whether to keep Auto-Reinvest on or turn it off.

Are there fees for Auto-Reinvest?

There are no additional fees for using Auto-Reinvest.

However, standard bond transaction fees still apply when a new bond is purchased through the feature.

What happens if Auto-Reinvest does not push through?

If Auto-Reinvest does not push through, your maturity proceeds will be credited to your wallet.

Common reasons include:

• Your maturity proceeds are below the ₱500 minimum amount
• Your awarded bond amount is below the ₱500 minimum because of partial awarding
• Auto-Reinvest was turned off before maturity
• The next eligible bond is not available or does not meet the feature requirements

Reminder: You’ll also receive an email notification if Auto-Reinvest does not push through.

TL;DR:

• Auto-Reinvest is available only for eligible T-Bills sold in the Primary Market.
• The minimum amount for Auto-Reinvest is ₱500.
• Auto-Reinvest orders remain subject to availability, allocation, and standard bond transaction fees.
• You can turn Auto-Reinvest off anytime before your bond matures.
• If Auto-Reinvest does not push through, your maturity proceeds will be credited to your wallet.