Mutual funds' assets hit record P96B in 2010

MANILA, Philippines - Total assets under management (AUM) of the country’s mutual fund industry in 2010 broke all records hitting P95.7 billion, or 8.75 percent higher than the previous record level of P88 billion recorded in June 2007. However, 2007 ended with total AUMs of P86.2 billion.

Total assets grew by 39.3 percent if compared to the P68.7 billion recorded in 2009

As expected, the equity funds expanded by a whopping 60 percent as the country’s bourse went wild by setting new record levels.

From just P12 billion is total assets, the equity funds ballooned to P18.9 billion.

However, the peso-denominated fixed income or bond funds remained the largest basket in terms of total value. From P29.7 billion in 2009, it grew by 37.4 percent to P40.8 billion.

The balanced funds expanded by 32 percent, carried by the strong surge of the equity markets. From P15.9 billion in 2009, the combined equity and fixed income mutual fund grew to P21 billion.

The foreign currency denominated mutual funds also reflected the bullish sentiment of the country’s investors. From the peso-equivalent of P10.8 billion in 2009, it expanded by 29 percent to P14.1 billion in 2010.

Foreign currency-denominated funds are either in US dollars or the stronger euros.

And as is the usual case, the money market funds hardly grows or shrinks as investors all moved to the faster earning albeit greater risk funds. It is the reverse when the markets are extremely volatile with a downward trend.

From P935 million in 2009, it shrunk slightly to P910 million.

The robust economic conditions can also be seen in the double-digit expansion of the number of accounts (investors) from 2009 to 2010. From 93,400 accounts in 2009, it ballooned by 14 percent to 106,300.

There are 46 mutual funds in the industry, although they are basically the same in general type of investments.

These are the fixed income or bond funds, equity or stock market funds, balanced funds, money market funds, and dollar-denominated fixed income fund. Some fund managers offer euro-denominated fixed income funds, or the PSEindex fund, or global funds.

There are a dozen fund managers who oversee the mutual funds.

These are: BPI Asset Management, Cocolife Asset Management, Deutsche Bank Asset Management, First Galleon Family Fund, FMIC Asset Management, Grepalife Asset Management, MAA Mutual Life Asset Management, MF Management Co. of the Phil., Multinational Investment Bank Fund, Philam Asset Management, PhilEquity Management, and Sunlife Asset Management.