Fund manager eyes P70-B aums

MANILA, Philippines -  The wealth management arm of Rizal Commercial Banking Corp. (RCBC) is targeting assets under management (AUMs) to over P70 billion by the end of 2013.

At the start of the second semester of 2013, assets grew five percent to P63 billion from P60 billion in end-2012.

“We hope to grow the assets by 17 percent this year,” Manuel G. Ahyong Jr., RCBC vice president and wealth management head, said.

Wealth management, also known as private banking, is an investment advisory service of commercial banks that incorporates financial planning, investment portfolio management, and estate planning.

A minimum initial investment amount of P5-million allows that bank client to explore areas of investment with the help of a relationship manager (financial adviser) or RMs.

Ahyong explained that RCBC first looks at the risk profile of its clients.

“From there, we divided or diversify the risks or investments. There is always a component of the investor’s wealth that are short term and a component for long-term investments. A typical allocation is 40-percent in cash or near-cash instruments, another 40-percent in long-term bonds, and 20-percent in long-term equities.”

Its preferred investment instruments are: from fixed income or bonds to equities or stock market; time deposits; unit investment trust funds (UITF); mutual funds; estate planning; insurance; and the soon-to-be introduce exchange traded funds (ETFs).

Meanwhile, Ahyong said that information is vital for wealth managers.

“We want to give all the information to our clients, which in turn allows them to make wise decisions,” he said. “Our RMs make it a point that we are within reach of our clients, every single day.”

When the market corrected towards the end of the first semester, RCBC held several forums for its private banking clients to keep them abreast of the situation. In turn, it allows them to have a better understanding of the present state of their investments.

The wealth management unit of RCBC believes that the market will remain volatile in the third quarter.

“But in the fourth quarter, there is chance of an upside potential for the market to improve simply due to the huge liquidity. During the crisis periods of 1997 and 2008, high liquidity was absent. Today, the scenario is very different,” Ahyong pointed out.

The last quarter of the year will see the return of the Philippine Stock Exchange Index (PSEi) to 7,000 level, the economy as well as corporate earnings will remain very strong.

It has 23 RMs, seven offices located in five locations in Metro Manila and one each in metro Cebu and Davao.