Wealthtech

BPI Wealth AUM Surpasses P1 Trillion Mark, Sets Sights to Expand Offerings

BPI Wealth, the wealth management subsidiary of the Bank of the Philippine Islands (BPI), is preparing for a substantial increase in its assets under management (AUM) in the coming year, driven by a favourable economic environment and the introduction of new financial products.

Maria Theresa D. Marcial, President and Chief Executive Officer of BPI Wealth, expressed confidence in the company’s capacity to continue its growth trajectory into 2024 and beyond, with AUM expected to grow by approximately 15% to 20%.

Maria Theresa Marcial

“Looking ahead, BPI Wealth is on track and poised to sustain our growth momentum in 2024 and beyond. We see our AUMs growing in the neighborhood of 15% to 20% with strong winds behind our sails given buoyant market conditions and a renewed sense of optimism towards economic expansion supported by lower inflation, potential decline in interest rates, and higher investment spending,”

she told BusinessWorld in an e-mail.

In the year ending 2023, BPI Wealth’s AUM exceeded PHP1 trillion, reaching PHP1.223 trillion and marking a 40% growth from the previous year. This achievement underscores the firm’s position as a leading investment fund manager and trust corporation in the Philippines, attributed to targeted marketing, client acquisition strategies, and organic growth across various client demographics.

The increase in bespoke managed accounts by 54%, with over 50 new mandates resulting in PHP45 billion in new funds, highlights the company’s ability to attract significant investments, including mandates from major national funds.

Initiatives to increase fund accessibility, such as lowering minimum investment requirements and enhancing digital platforms for investment management, played a crucial role in this growth. The expansion of partnerships and transaction channels also contributed to the company’s success in 2023.

Looking ahead, BPI Wealth plans to broaden its product range, including an investment fund offering health benefits and lifestyle rewards. According to CEO Maria, the introduction of a Multi Family Office solution aims to meet the complex needs of high net worth clients, covering aspects of family governance, investment management, and legal advisory.

In an effort to promote sustainable investing, BPI Wealth intends to make its Sustainable Funds available to a wider audience with the introduction of the Peso Share Class. Additionally, the firm is set to expand its employee benefit funds business and introduce new discretionary model portfolios, catering to investors looking to quickly capitalise on market opportunities in line with their investment goals.

These strategies are part of BPI Wealth’s long-term aim to increase its AUM to PHP3 trillion by 2026, reflecting a commitment to growth and innovation in wealth management. The announcement follows BPI’s report of a marked increase in net income for the fourth quarter of 2023, indicating a positive overall performance and future outlook for the institution.

Featured image credit: Edited from Freepik