BPI assets under management hit P255B as of March

The Bank of the Philippine Islands (BPI) had over P255 billion in assets under management (AUM) as of end March, the single biggest block in the banking system.

This is 27.5 percent better than the P200 billion recorded at the end of 2006.

"That is good enough to keep a market share of 26 percent of the industry AUMs," Adelbert A. Legasto, BPI executive vice president and head of BPI Asset Management Group (BPI AMG), said.

Of the total, P150 billion are funds in trust and investments, another P10 billion are unit investment trust funds (UITFs), P45 billion in mutual funds; and the balance consist of various funds, including P500 million in a euro-denominated product and maturing common trust funds (CTFs).

"Our target is to grow the funds by another 15 percent," Legasto said in an interview during the recent awarding ceremonies of the Investment Company Association of the Philippines (ICAP).

The fixed income market has always been BPI’s main investment tool, with the equities of late coming in strong, while the currency market remains steady.

The outlook is that the equities market will remain the investors’ favorite this year as low interest rates have suppressed the fixed income appetite.

Legasto said the public is looking for more investment instruments, and they are slowly appreciating trust funds, the stock market (equities), and mutual funds. "The more players in the markets, the better for the investing public," Legasto said.

Recently, the BPI-managed mutual funds received various citations during the 1st ICAP Fund Performance award. It received four awards for its bond and stock index funds.

It also was given special citations for having the "biggest family of funds in terms of net asset value (NAV) of funds."

Legasto was also honored "for his significant contributions in the development and growth of the mutual fund industry."

The ALFM provides a monthly update on the funds’ returns, portfolio composition, market review, and fund manager’s outlook. The reports also indicate the funds’ risk characteristics and risk management policy. Transparency and disclosure information are available online at www.alfm.com.ph.

The ALFM family of funds also boasts of a wide network of mutual fund sales agents from BPI Capital Corp., BPI Securities Corp., and BPI Investment Management Inc. These agents advise investors on the benefits and risks of mutual fund investing and serve as clients’ financial partners who can provide reliable and intelligent investment data.