THE asset management subsidiary of Bank of the Philippine Islands (BPI) grew its market share last year after nearly doubling its total assets under management (AUM).
In a recent statement, BPI Investment Management Inc. (BIMI) noted that its market share in the mutual fund industry rose 54 percent last year from 35 percent in 2019.
This, as it recorded 96-percent growth in its business last year despite the economic slowdown brought about by the lockdown measures amid the pandemic. BIMI attributed this mainly to the assumption of the Philam Asset Management Inc.’s mutual funds and 24-percent growth in its retail business.
As of the first week of February, BIMI reported that its total AUM reached P202 billion already.
BIMI President Martin Enrile said that the “solid performance amid market volatility and economic uncertainty due to the Covid-19 pandemic is a testimony to our hard-earned reputation of providing stable investment outlets under various market conditions.”
For this year, the mutual fund manager is optimistic that economic activities and consumer mobility will find their way back to pre-pandemic levels due to the vaccine rollout.
“Backed by an institution that has seen all kinds of crises in its 169-year history, BIMI is well-poised to take advantage of a much more favorable investment environment with its fortified sales resources, system upgrades, timely marketing activities, and product launches suited to the rapidly changing needs of the investing public,” he added.
Last month, BIMI announced its partnership with asset manager BlackRock Inc. in launching a feeder and income-paying mutual fund.
The feeder fund will invest at least 90 percent of its assets to BlackRock Global Fund Multi-Asset Income Fund, allowing local investors to access offshore securities, including equities, bonds and alternative investments. BIMI said that the unit holders can expect regular and consistent dividend income per month.
Parent firm BPI registered net income of P21.4 billion last year, a 25.7-percent decline from P28.8 billion in 2019, due to loan loss provisions growing by fivefold. Revenues, however, rose by 10.5 percent to P101.9 billion.
As of end-December 2020, BPI grew its total assets by 1.3 percent to P2.2 trillion. Total capitalization stood at P279.8 billion, with common equity tier 1 ratio and capital adequacy ratio reaching 16.2 percent and 17.1 percent, respectively.
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