Mutual fund assets expand 70% to P43.3-B as of November ’03

The country’s mutual fund industry grew by 70.47 percent as total assets managed as of November 2003 went up to P43.3 billion, from P25.4 billion a year earlier.

Compared to the end-2002 figure of P25.8 billion, the mutual fund industry’s assets under management (AUM) expanded by 67.8 percent.

The Investment Company Association of the Philippines (ICAP) had originally targeted the AUM level to at least P50 billion by end-2003.

ICAP officials said the outlook is bright for further aggressive growth as interest rates on savings deposits of banks remain depressed.

However, there appears little interest among foreign fund managers in operating mutual funds except in partnership with local managers.

There are presently 10 asset managers in the country handling 30 funds. The biggest asset groups are BPI Asset Management and Trust Group (Ayala Life Fixed Income Fund and Far East Dollar Bond Fund); Philam Asset Management Inc. (Philam Strategic Growth Fund, Philam Fund, Philam Bond Fund, GSIS Kinabukasan Fund, and Philam Dollar Bond Fund); and Sun Life Financials (Sun Life Prosperity Philippine Equity, Sun Life Prosperity Balanced, Sun Life Prosperity Dollar Advant, and Sun Life Prosperity Bond Fund).

There are three "independent" funds (or a single asset manager running just one fund): United Fund, First Galleon Family Fund, and Philequity Fund.