BPI trust funds reach P253 B in May

MANILA, Philippines - The Bank of the Philippine Islands (BPI) has reported total assets under management (AUMs) classified as unit investment trust funds (UITF) amounted to P252.6 billion as of May this year.

The Asset Management and Trust Group (AMTG) of the bank oversee all UITFs, trust and other fudiciary funds. The UITFs, in turn, are divided into three general fund groups. These are BPI Investment Funds, ALFM Funds and the Odyssey Funds.

Total asset of funds under the BPI Investment Funds are P113 billion, while total ALFM Funds reached P94.2 billion. The Odyssey Funds hit P45.3 billion.

UITFs are investment funds wherein the banking public can place their money. These in turn are placed in various types of funds invested in fixed income or bonds, equity or securities, money market, balanced or a mix of equity and fixed income, and foreign funds.

These are either peso- or foreign currency-denominated funds.

Minimum initial investment ranges from P5,000 to P100,000, depending on the type of funds.

Most popular fund type across all general fund groups, is the fixed income peso-denominated fund. The reason for its popularity is that fixed income or bond funds are generally perceived as low risk although returns are also among the lowest. It is however generally better than basic savings account returns.

Combined amount reaches over P100 billion or roughly half of the total value of AUMs.

It is followed by UITFs investment in the equity or securities market, investments in the balanced funds, money market funds, and foreign currency-denominated funds.

Single biggest fund is the ALFM peso bond fund valued at P64.9 billion as of end May. The ALFM Fund are mutual funds managed by BPI Investment and Management Inc. (BIMI).