Metropolitan Bank & Trust Company (Metrobank) has approved the sale of its asset management unit to ATR Asset Management Inc. (ATRAM) while Union Bank of the Philippines is also in talks to merge its trust business with that of ATRAM.
"These are bold moves by ATRAM to quickly scale up its trust and asset management business and thereby improve profitability amidst increasing competition from much larger fund managers and trust entities," said Chinabank Capital Corporation Managing Director Juan Paolo Colet.
He noted that, "The nature and economics of the industry favor the players who have the scale, talent, and efficiency to offer the best products at the least cost, do market consolidation makes sense."
In a disclosure to the Philippine Stock Exchange, Metrobank said the Board of First Metro Investment Corporation (FMIC), the investment banking arm of Metrobank, approved on Oct. 30, 2024, the sale of its shares in First Metro Asset Management Corporation (FAMI) to the ATRAM Group.
Metrobank said the sale is part of FMIC’s strategy to focus on the investment banking business.
The sale will consist of 1.05 million common shares representing 70 percent of the issued and outstanding capital stock of FAMI to a consortium consisting of the ATRAM Group, led by its parent company, ATRAM Investment
Management Partners Corporation and MET Holdings, Inc.
This is part of FMIC’s strategic business decision to focus on the investment banking business.
A Share Purchase Agreement will be executed between FMIC and MET. The completion of the transaction, however, is contingent upon the fulfillment of the conditions specified in the Agreement.
ATRAM is one of the leading independent asset management firms in the country, ranking fourth among active investors in the trust industry, with asset under management (AUM) of over P385 billion as of September 30, 2024.
FAMI is the principal distributor and fund manager of First Metro Philippine Equity Exchange Traded Fund, Inc. since its establishment in 2013. It assured that, "The quality of service provided by FAMI will remain unchanged as it continues to perform its duties and responsibilities as fund manager."
Meanwhile, UnionBank said, “There are ongoing discussions between the parties” regarding the merger of their trust businesses, “but nothing has been finalized.”
The ATR Asset Management Group operates through ATR Asset Management, Inc. and the ATRAM Trust Corporation. This group manages mutual funds, trust assets, insurance portfolios, and real estate portfolios for proprietary and third-party clients.
ATRAM was established in July 1995 by Clemente Fund Management Asia Ltd. as the Mutual Fund Management Co. of the Phils. (MFMCP) to serve as investment adviser, principal distributor, and administrator of the Mutual Fund Company of the Philippines, also known as the “Kabuhayan Fund.”
In 2003, Maybank ATR Kim Eng Capital Partners, Inc. purchased an 83 percent stake in MFMCP from some of the original shareholders, thereby gaining control of the company.
As a leading asset and wealth manager engaged solely in fund management, ATRAM said it is focused on delivering superior investment performance and high-quality client service to its clients.
Being a stand-alone trust corporation allows ATRAM to efficiently access markets, effectively source investment instruments at best execution levels, and make use of local market intelligence and experience proven critical to investing.
ATRAM Trust Corporation (ATRAM Trust) is the first stand-alone trust corporation in the Philippines. It received its license to operate in October 2016 from the Bangko Sentral ng Pilipinas (BSP).
ATRAM Trust was the first to launch a complete range of feeder funds in the Philippines which provide Filipinos access to offshore investments in the US, Europe, Emerging Markets and Asia.
The trust business of the ATRAM Group was originally operated out of the trust department of Maybank ATR Kim Eng Capital Partners, Inc., an investment bank and advisory services firm.