BPI trust arm to manage P3 B worth of SSS funds

MANILA, Philippines — A unit of Ayala-led Bank of the Philippine Islands (BPI) continues to expand its asset under management after bagging a deal with state-run Social Security System (SSS) to manage P3 billion worth of funds for the next two years.

The deal was the biggest transaction given to an asset management company this year.

Sheila Tan, president of BPI AMTC, said the amount would be invested according to specific objectives set by the SSS, including target returns as well as identified asset classes reflecting acceptable risks and potential returns for the funds.

“We are grateful for the trust given to us by SSS to manage a significant portion of the institution’s funds. This agreement allows us to further contribute to nation-building by helping SSS achieve its investment objectives for the benefit of its members,” Tan said.

BPI AMTC, a fully owned subsidiary of BPI, is the largest stand-alone trust corporation in the country with P591 billion in assets under management.

Its 32-unit investment trust funds serve a broad spectrum of investor risk profiles and strategies, and are invested in both local and offshore money market, fixed income, and equity assets.

SSS has been tapping reputable partners in the fund management industry to enhance returns and benchmark performance - an acid test really for external fund managers to prove their worth in protecting and growing SSS funds.

It is the country’s largest pension fund institution that addresses the basic needs of the private sector workers and their families by protecting them from the hazards of disability, sickness, old age, and death.

In July last year, SSS invested P3 billion of its investment reserve fund in three local mutual funds including Philequity Management Inc., Sun Life of Canada Prosperity Balance Fund Inc., and Philippine Stock Index Fund Corp.

It is also looking at hiring fund managers and advisers for its planned offshore investments.

Early last month, BPI AMTC announced that the Home Mutual Development Fund (Pag-IBIG) tapped the company to manage a portion of its P5 billion portfolio.

The BPI unit bagged a contract to manage P1 billion or a portion of the total investment portfolio of Pag-IBIG fund for five years after a rigorous bidding process.