BPI fund unit pads volume to P165 billion after PAMI deal

MANILA, Philippines — The funds managed by a wholly owned subsidiary of Ayala-led Bank of the Philippine Islands (BPI) ballooned to P165 billion as it client base nearly tripled to 140,000 after it assumed the management of funds under the PhilAm Asset Management Inc. (PAMI).

In a statement, BPI said BPI Investment Management Inc. (BIMI) has assumed the management and distribution of nine mutual funds previously managed by PAMI effective Jan. 29.

BIMI president Martin Enrile said investors in the PAMI funds would benefit from the consistent track record and expertise of BIMI.

“We look forward to managing the PAMI funds and excited to help more Filipinos achieve industry-leading returns from their investments,” Enrile said.

The subsidiary of the 168-year old BPI manages the ALFM Funds representing approximately 35 percent of the industry as of end-December. Established in 1974, BIMI is the largest mutual fund manager in the country with AUM of more than P100 billion.

PAMI, one of the country’s oldest fund management companies, also has one of the most diversified range of investment products and largest client base.

Its investment companies include Philam Managed Income Fund Inc., PAMI Equity Index Fund Inc., Philam Bond Fund Inc., PAMI Asia Balanced Fund Inc., Philam Fund Inc., Philam Dollar Bond Fund Inc., PAMI Horizon Fund Inc., PAMI Global Bond Fund Inc., and Philam Strategic Growth Fund Inc.

Earnings of BPI jumped by 25 percent to a record P28.8 billion last year from P22.42 billion in 2018 on the back of strong interest and non-interest earnings.

BPI’s comprehensive income jumped by 28.4 percent to P28.77 billion from P22.41 billion, while operating expenses climbed 14.8 percent to P50.08 billion from P38.53 billion.

The listed bank’s non-interest income went up by 25.2 percent to P28.39 billion, primarily from higher fee-based income and securities trading gains.

Cost-to-income ratio was at 53.1 percent, lower than the 55.5 percent recorded in the prior year. Provision for losses for 2019 was P5.82 billion, increasing the bank’s loss coverage ratio to 104.8 percent.