BPI unit to manage P1 billion Pag-IBIG assets

MANILA, Philippines — The wealth management arm of Ayala-led Bank of the Philippine Islands (BPI) has bagged another contract to manage another P1 billion worth of assets of Pag-IBIG Fund.

The additional mandate doubled the amount to P2 billion managed by BPI Wealth, formerly known as BPI Asset Management and Trust Corp.

“We are truly grateful to be awarded this second mandate, being selected among many others who participated in the second round of bidding,” BPI Wealth president and CEO Maria Theresa Marcial said.

In 2019, Pag-IBIG Fund tapped BPI Wealth as one of the five fund managers of its P5 billion portfolio.

“To be selected in the initial bid back in 2019 was an honor as this was a testament to the trust and confidence given to us by one of the largest government financial institutions in the country,” Marcial said.

As of end-2022, the assets under management of BPI Wealth stood at P875 billion, making it the largest standalone trust corporation in the Philippines.

With the recent landmark awarding, BPI Wealth now takes control of the biggest portion of Pag-IBIG Fund’s equity investment portfolio that is outsourced to domestic fund managers.

The investment mandate by Pag-IBIG Fund is a pure Philippine equity portfolio. This bodes well for the agency as BPI Wealth positions to seize opportunities in the equity markets as the domestic economy sustains recovery post COVID-19 pandemic.

According to Marcial, the new mandate only inspires the company to do its best with the funds entrusted by Pag-IBIG.

“Financial inclusion has always been at the heart of BPI’s mission. Through this renewed partnership between Pag-IBIG Fund and BPI, we are given the opportunity to further contribute to nation-building by growing the funds that enable Filipinos to live their dreams of having their own homes,” she said.

Earlier, Pag-IBIG Fund reported a 21-percent increase in home loans to an all-time high of P117.85 billion to finance the housing units of 105,212 members in 2022.

Robert John Cosico, deputy CEO for support services cluster at Pag-IBIG Fund, said the partnership with BPI goes way back.

“We have experienced first-hand their passion for delivering excellent fund management, and we have full trust and confidence that they will help us realize our vision of inclusive growth for every Filipino. We are excited to continue to benefit from their expertise,” Cosico said.