Amid favorable conditions for long-term investments, the wealth-management arm of Ayala-led Bank of the Philippine Islands (BPI) will roll out before this year ends a new mutual fund eyeing young and tech-savvy investors.
BPI Wealth personal wealth head Irene Ang told a press briefing on Friday, October 18, that the forthcoming BPI Wealth Builder Multi-Asset Mutual Fund Inc. is expected to be approved "soon" by the Securities and Exchange Commission (SEC), which regulates mutual funds, for it to be sold to the public.
This first-of-its-kind balanced, global-based and peso-subscription and -redemption fund aims to convince millennials and the Gen X generation in the country to invest and prepare for their retirement, Ang said.
Among the innovative and unique features of this mutual fund include availability for a minimum of only P1,000; accessibility on BPI's online platforms and accredited channels to conveniently open an investment account, monitor investments, and receive cumulative rewards and benefits at no extra cost; as well as an automated and automatic top-up system allowing additional investments of at least P100 monthly.
Ang is optimistic that up to P1-billion investments in their upcoming newest mutual fund would be "easy."
BPI Wealth president and chief executive officer (CEO) Maria Theresa D. Marcial noted that among their investors, those who onboarded via digital channels continued to engage more regularly than branch-opened accounts.
"We should push more into digital initiatives," said Marcial, who is spearheading BPI's "Wealth Wellness Month" this October to promote financial inclusion and literacy as well as opportunities for small investors.
Marcial disclosed that as of end-September, BPI Wealth's assets under management (AUM) rose to a new high of P1.4 trillion, from P1.2 trillion in end-2023.
On top of the earlier goal of 20-percent AUM increase for this year, Marcial said a further 15-percent growth next year will be "reasonable."
BPI Wealth targets P3 trillion in AUM by 2026.
Marcial cited that while mutual funds and other assets experienced a roller-coaster ride of ups and downs during the past three years due to global financial conditions, the clarity in the ongoing monetary policy easing here and abroad this year has improved prospects.
"We're seeing markets becoming more buoyant, and fund managers are becoming more constructive across asset classes," she said.
"Bonds are expected to do better, as interest rates go lower. And because interest rates are lower... so [in] equity we're seeing some renewed interest," she added.
"As we see this turnaround, we will have some strong tailwinds that will help propel the funds industry. So we're really gearing towards a more positive outlook for investments," the BPI Wealth chief said.
According to Marcial, the attractiveness of short-term investments amid the previously high-interest rate environment is "changing" as assets deemed riskier like bond and equity funds benefit from inflows propelled by the reemerging risk-on sentiment.