BPI trust, asset management unit emerges as industry trailblazer

MANILA, Philippines — The stand-alone asset management and trust unit of Ayala-led Bank of the Philippine Islands (BPI) is acting as a “trailblazer” for the industry through various products for investors.

BPI Asset Management and Trust Corp. president Sheila Marie Tan said in an interview with The STAR the company is the first stand-alone trust corporation among trust entities in the country in terms of assets under management (AUM).

“In a way we are trying to be the trailblazer, being the first and the largest as a stand-alone trust corporation in terms of AUM and size of the organization, both backroom and even our investment management and analyst group is still the largest in the country. That is what we take pride in,” Tan said.

BPI AMTC started its operations in February last year after receiving its license from the Bangko Sentral ng Pilipinas (BSP) as a stand-alone trust corporation in December 2016.

Assets being managed by the company climbed five percent to P594 billion last year from P566 billion in 2016. About two-thirds of the AUM are segregated portfolio from institutional clients and retirement funds, while retail investors account for the remaining one-third.

“Our AUM rises and falls depending on wealth growth meaning how fast does wealth grows in the country and second is the market itself,” she said.

External factors, according to her, include the interest rate movement implemented by the US Federal Reserve, the trade war between the US and China, emerging market contagion, while domestic concerns include rising inflation and the weakness of the peso.

“So if the markets are not good it also takes a dip and gets affected, but otherwise we are also following the global space. They are saying that globally, wealth grows about six to 6.5 percent and we are seeing the same for the Philippines,” Tan said.

She said BPI AMTC is leveraging on retail investors particularly millennials that are starting to be the driving force in the capital markets.

Tan said BPI AMTC is encouraging millennials to shift to investments instead of savings and at the same time diversify their portfolio.

“You have to exchange your Starbucks for an investment instrument,” she added. “It is part of your diversification strategy which is what we have been encouraging our investors to diversify not only just in terms of asset class but also in the currency class. You have to have global exposure so you maximize on the weakness on the peso when it weakens,” Tan added.

Marijoy Kawpeng, head of strategic planning and marketing at BPI AMTC, said the company is launching a peso share class for US dollar equities soon.

“So you come in as peso and you are able to invest in the likes of Amazon, Facebook, GE, Dell, HP and all these global names that you never imagined that you will be able to access,” Kawpeng said.

BPI AMTC recently launched the BPI US Dollar Income Feeder Fund, the first dollar-denominated income fund in the country. Investors may buy into the BPI US Dollar Income Feeder Fund for as low as $1,000, with a holding period of 180 days.

This is the first income-paying unit investment trust fund for investors who want to earn more from their foreign currency investments given the strength of the dollar and current market conditions.