Philippine fund manager BPI Investment Management is taking over management and distribution of all of Philam Asset Management’s mutual funds as the latter firm is converted into a trust corporation to oversee the Philam Group’s investments.
In a statement on November 25, Manila-based BPI Investment Management, which is wholly-owned by Bank of the Philippine Islands, says this will increase its assets under management to almost 165 billion pesos (US$3.25 billion).
Philam Asset Management previously managed the mutual funds internally. It did not disclose the amount of assets in the funds.
The move comes almost a week after Philam Asset Management’s parent company AIA Philam Life unveiled plans on November 19 to convert the former into a trust corporation that will be the main vehicle managing the Philam Group’s investment portfolio.
The transition of the funds will be “as seamless as possible” and they will be managed “prudently” in accordance with Philam Asset Management’s guidelines and objectives, Martin Enrile, BPI Investment Management’s president, says in the statement.
According to Kelvin Ang, chief executive officer of Manila-based AIA Philam Life, setting up a trust corporation to manage its insurance funds will allow the company “to give more focus on investment requirements that support our core insurance business”.
“As such, we will be able to draw on the advantages of economies of scale, innovative investment strategies and multi market fund access, and pass it on to our customers," he says in the statement.
The company did not disclose the value of its investment portfolio, and spokespersons did not immediately respond to questions from Asia Asset Management.