MANILA -British insurer Pru Life UK is exiting the Philippine fund management sector after a five-year run as it announced the sale of the business to a unit of homegrown fund manager ATR Asset Management (Atram) Group.
Pru Life obtained the approval of the Bangko Sentral ng Pilipinas (BSP) to transfer the entire portfolio and operations of Pru Life UK Asset Management and Trust Corp. (PAMTC) to Atram Trust Corp. in November this year.
Atram Investment Management Partners Corp., another affiliate of the group, will then acquire the PAMTC businesses entity by 2024, subject to regulatory conditions. The sale value was not disclosed.
Pru Life UK described the move as “part of its growth strategy to focus on its core business and fulfil the evolving needs of its growing customer base”.
“PAMTC has grown its portfolio, offering a superior selection of funds for Filipinos who want to achieve their financial goals. With Pru Life UK and Atram’s shared goal of helping more Filipino families live wealthier, we look forward to Atram continuing the legacy of PAMTC,” Eng Teng Wong, Pru Life UK president and CEO, said in a statement.
PAMTC, which began operations in 2019 just months before the COVID-19 pandemic arrived, was established to capture growing demand in the Philippines for new investment products.
The asset management sector has also come under pressure in the postpandemic era amid soaring consumer costs and rising interest rates.
In the same statement, Atram Group CEO Michael Ferrer assured PAMTC clients of a “smooth transition” during the takeover.
READ: Pru Life UK taps ATRAM Group as local fund manager
“With a long and proven track record in asset management, Atram brings a robust investment process built on best practices with a focus on risk management. This ensures that your client portfolios are well managed and will deliver the expected performance on a consistent basis,” he said.
The deal marks a new direction in the “strategic partnership” of Pru Life and Atram Group that was announced last August.
At the time, Pru Life said it had tapped Atram as its local fund manager following a rigorous evaluation and approval process.
This means the insurers’ customers will gain access to the latter’s financial solutions and local market expertise.