ATR KimEng spins off asset management group

MANILA, Philippines - Investment house ATR KimEng Financial Corp. (ATRKE Financial) has strengthened its asset management capabilities in anticipation of more investments in trust funds and mutual funds.

In a statement, ATRKE Financial said it has formed a dedicated business group, ATR KimEng Asset Management Group, capitalized at P200 million.

ATRKE Financial currently has over P5 billion of assets or assets under management (AUM) which include mutual funds, trust funds, insurance portfolios and real estate for propriety and third party clients.

Its subsidiary ATR KimEng Capital Partners Inc. (ATRKE Capital) has presence in the asset management industry which it conducts through unit The Mutual Fund Management Company of the Philippines (MFMCP) which manages three mutual funds.

ATR KimEng Direct Investments, a subsidiary of ATRKE Capital, will be renamed ATR KimEng Asset Management Holdings Inc. and its authorized capital increased to P140 million. MFMCP will be renamed ATR KimEng Asset Advisors (ATRKE Asset Advisors) and its authorized capital increased to P100 million.

ATRKE Capital will concurrently sell its 83 percent stake in MFMCP to ATRKE Direct Investments, which will be the entity that will subscribe to new shares in the new ATRKE Asset Advisors.

ATR KimEng Group president and chief executive officer Manuel N. Tordesillas said the expansion of its asset management business is part of its strategy aimed at becoming the leader in the capital markets.

“Likewise, it brings synergies with our insurance and real estate businesses,” Tordesillas added.

ATRKE’s life insurance subsidiaries are AsianLife & General Assurance Corp. and AsianLife Financial Assurance Corp.

ATRKE Financial reported a consolidated net income of P94.619 million in the first six months of 2009, 61 percent higher than the P58.59 million recorded in the same period last year.

Total assets hit P4.67 billion, a six percent increase from P4.412 billion as of end-2008. Total liabilities increased six percent to P2.068 billion while total equity grew to P2.602 billion.           — Ted Torres