BPI corners 23% of fund management

MANILA, Philippines – Ayala-led Bank of the Philippine Islands (BPI) continues to grow its trust and mutual fund assets under management (AUMs) that stood at P659 billion end-March this year.

Of the total, trust AUMs stood at P558 billion up 3.4 percent, while mutual funds expanded 2.5 percent to P101 billion.

At the end of 2015, total AUMs hit P637 billion equivalent to a market share of 22.9 percent of the industry total of P2.78 trillion.

Total funds represent the bank’s trust and mutual fund business, with the former managed by the Asset Management & Trust Group and the latter overseen by the BPI Investment and Management Inc. (BIMI).

BPI senior vice president and AMTG head Mario T. Miranda said the AUM market share for BPI’s funds management businesses has grown to 22.9 percent in 2015 from 21.3 percent in 2013.

Total AUMs in 2013 stood at P574 billion or 21.3-percent market share, to P619 billion the following year with a market share widening to 21.9 percent.

“Last year, market share increased to 22.9 percent,” Miranda said.

BPI’s trust AUM growth from 2013 to 2015 has been faster at a compounded average growth rate (CAGR) of 6.5 percent versus the industry’s 1.3 percent.

It expanded from P476 billion in 2013 or 19.2 percent market share of total trust industry to P522 billion in 2015.

Last year, it grew further to P540 billion or 21.2 percent market share.

Meanwhile, mutual funds lost market share in the three-year period from 47.3 percent in 2013 to 40.9 percent last year. At the close of 2015, AUMs of the mutual fund business stood at P97 billion.

In the same period, the mutual fund industry reported growth to P237 billion in 2015 from P207 billion in 2013.

The trust business of a bank is comprised of escrow accounts, estate administration, corporate trust services, pre-need trust funds, unit investment trust funds (UITFs), among others.

Mutual funds is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.