The record low interest regime in the Philippines during this prolonged coronavirus pandemic has prompted more Filipinos to chase yields from alternative investments here and abroad.
This has allowed Ayala-led Bank of the Philippine Islands (BPI) to hit P1 trillion in assets under management (AUM) through its consolidated trust and asset management business in November. Since the start of the year, the bank reported a 14 -percent growth in combined AUM for BPI Asset Management and Trust Corp. (AMTC) and for BPI Investment Management Inc. (BIMI). AMTC recorded P832 billion while BIMI ended with P190 billion in AUM.
For its part, Yuchengco-led Rizal Commercial Banking Corp.reported that some clients had been scouting for offshore investments, specifically those who had excess funds or were seeking to diversify their portfolios.
Investments made offshore can be in the form of bonds, stocks, mutual funds, real estate and life insurance, among others, RCBC trust and investments group head Robert Ramos said.
Although challenges remain in terms of offshore investments as the direct and indirect impact of the pandemic varies per region or country, Ramos said corporate clients should grab opportunities to convert their investments to income.
Before investing funds in offshore markets, Ramos said factors such as risk assessment on the financial instrument should be initiated, as well as analyzing one’s cash flow position, and identifying the value of one’s investment in a specific market moving forward.
BPI chief finance officer Maria Theresa Marcial said a number of factors had contributed to the growth in BPI’s consolidated fund management business during this pandemic.
“We were able to grow our AUM in the trust and investment management businesses both organically and through new accounts and fund management acquisitions. We are grateful for the trust that the investing public has put in BPI, and in our fund management arms, BPI AMTC and BIMI,” Marcial said.
“In return, our clients have our assurance that we will continue to provide them with excellent financial services that have stood the test of time and trials such as the ongoing pandemic,” she added.
BPI AMTC president Sheila Marie Tan added: “Our continuous focus on superior risk-adjusted returns gave existing clients and new investors confidence in our products. Coupled with tighter client coverage and improved account servicing, we will afford our investors the same level of consistent attention and performance for their investments.”
BPI has a wide range of funds to fit every investor risk profile. Of these, BPI Invest Money Market Fund, BPI Invest US Dollar Short Term Fund, BPI Pera Money Market Fund, BPI Pera Government Bond Fund, BPI Invest Global Equity Fund-of-Funds, and the BPI Invest US Equity Index Feeder Fund had the highest AUM growth as of November 2020 year-to-date.
“Our foreign investment funds have proven particularly popular, as the pandemic highlighted the need for investors to truly diversify their portfolios,” Tan said. “Our funds allow them to enter into high-quality global investments at reasonable and achievable amounts.”
Tan said the bank’s online readiness—which enables BPI Online and BPI Mobile app users to subscribe to or redeem investments from the comfort and safety of their homes—also allowed continuity in their investment journey.
“With many customers having to perform most tasks and transactions online due to social distancing requirements and community quarantine restrictions, clients are appreciative of the ability to do self-service transactions on their devices and in their own time,” Tan said.
Marcial said BPI’s investment businesses could grow further by reaching out to previously underserved and untapped markets through financial inclusion and education campaigns. INQ