UnionBank Investment Management and Trust Corp. Diversifies into Retail Sector

UnionBank Investment Management and Trust Corporation (UBIMTC), the standalone trust corporation of Union Bank of the Philippines, Inc., is set to expand its assets under management (AUMs) by broadening its client base and introducing new products tailored to retail investors.

Having commenced operations independently on the first of March following the approval from the Bangko Sentral ng Pilipinas on the fourteenth of November, 2023, and its registration with the Securities and Exchange Commission on 11 October, 2023, UBIMTC aims to utilise this autonomy to reach a more varied investor demographic.

“UnionBank Investment Management and Trust Corp. (UBIMTC) ranks as one of the top asset managers in the local trust industry and aims to increase its AUMs through product expansion and distribution channel growth,” the firm stated in an e-mail.

Traditionally catering to the mass-affluent and institutional clients, the corporation now plans to also attract retail sector clients by launching investment products that will include multi-currency and income-paying features. These offerings aim to enable investors to engage with a variety of asset classes and to invest in both local and international markets.

UBIMTC is enhancing its distribution channels within the UnionBank group and externally, which will support the accessibility of these new products. The strategy includes broadening the investment outlets available to investors, incorporating different asset classes, currencies, sectors, themes, and geographic areas.

The firm highlighted, “The continued development of the Philippine capital markets, leading to access for investors to a wider range of financial products and services, shall also be a significant catalyst in driving AUM growth.”

These initiatives are part of UBIMTC’s broader strategy to leverage its independent status as a trust entity, aiming to provide comprehensive investment solutions that meet the needs of both individual and institutional clients.

Meanwhile, UnionBank, the parent entity of UBIMTC, recorded a decrease in net income by twenty-eight percent year-on-year to P9.07 billion in 2023, which was primarily due to one-time integration costs associated with its acquisition of Citigroup Inc.’s consumer business in the Philippines.

Despite these costs, UBIMTC is positioning itself to tap into the anticipated growth and increasing sophistication of the Philippine capital markets.