YGC reviving mutual fund

The Yuchengco Group of Companies (YGC) is reportedly interested in reviving its moribund mutual fund as the fledgling industry has been growing by high double digits in the past few years.

Net assets of the country’s expanding mutual fund industry grew from P25.8 billion in end December 2002 to mind boggling P43.9 billion last year.

Rizalino Navarro, board chairman of the Rizal Commercial Banking Corp. (RCBC) said that they has started looking at steps required to revive the mutual fund after it was learned that they had an operational license to operate a fund. RCBC is a member of the YGC group.

"It is the right time. We are looking at renewing or reviving it," Navarro said.

The Pacific Fund Inc. was activated in 1969 but has remained inactive since 1986. Pacific Management Co. Inc., a YGC subsidiary, is the asset manager of the mutual fund.

Banks are barred from operating a mutual fund although it can operate a common trust fund (CTF). RCBC is one of the commercial banks running a profitable and competitive CTF.

The country’s mutual fund industry is composed of 23 mutual funds, managing five stock or equity funds, seven bond or fixed income funds, 10 balanced (equity and fixed income) funds, and a single money market fund.

There are 10 asset managers that run the 23 funds.

These 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); Sun Life Financials (Sun Life Prosperity Philippine Equity, Sun Life Prosperity Balanced, Sun Life Prosperity Dollar Advant, and Sun Life Prosperity Bond Fund). The Philippine Index Fund is managed by another BPI group.

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

– Ted Torres