Net assets of the Philippine mutual fund industry rose to P88 billion as of June 30, 2007 from P75.7 billion in December 2006, the Bank of the Philippine Islands (BPI) reported yesterday.
BPI Asset Management vice-president Adelbert Legasto said that the ALFM Peso Bond Fund’s net asset value remained the highest in the industry as of end-June this year, with P33.6 billion.
This is 38 percent of the entire mutual fund industry and almost 72 percent of the peso bond fund segment, he said.
The Fund, which is managed by BPI Asset Management, registered a half-year growth of 2.7 percent while the peso bond fund segment shrunk by 2.45 percent.
The Fund is invested in cash and deposits, government securities, corporate loans and receivable and in preferred shares, Legasto said.
“Its net asset value per share by end-June 2007 registered an all-time high of P214.97,” Legasto said.
Officials said that with prudent investment strategy and risk management policies in place, the Fund continues to deliver superior returns in 2007. As of June 2007, investors who have kept their investments with the Fund for the past five years are enjoying an absolute return of 49.28 percent.
The industry’s dollar bond fund sector, meanwhile, continues to expand in 2007. It posted a $4-million year-to-date growth in net assets of June. Compared to 2005, its growth slightly dropped as investors maintained peso-denominated investments due to the strength of the peso against the dollar.
As this developed, Legasto said BPI’s ALFM Dollar Bond Fund’s presence in the industry also grew, capturing 41 percent of the sector’s share.
The Fund posted an 8.91-percent year-to-date growth last June or higher than the segment’s year-to-date increase of 3.22 percent.
Officials said that the Fund’s net asset value per share rose to $289.93 in end-2006 to $297.77 as of June 30, 2007.
Meanwhile, BPI’s Euro Bond Fund grew steadily with euro 5.26 million by end-2006 and euro 5.88 million as of June 2007.
“With prudent investment strategies and risk management policies in place, the Fund’s net asset value per share continues to appreciate to euro 150.77 in 2005 to euro 159.73 as of June 30, 2007,” Legasto reported yesterday.