BDO says trust unit reaches P1-T milestone in managed assets


Posted at Nov 03 2020 01:08 PM

BDO says trust unit reaches P1-T milestone in managed assets 1
File photo

MANILA - BDO Unibank's Trust Group reached the P1 trillion milestone for assets under management due to the strong take-up of its unit investment trust funds (UITFs), the bank said on Tuesday.

BDO's UITF business grew nearly 35 percent as of end-September as more people bought securities during the pandemic.
“The clients see and appreciate the opportunities that the current market presents which will potentially result to significant growth in their investment returns as the market recovers,” said Rafael Ayuste Jr., BDO senior vice president and trust officer. 

Most of BDO’s clients moved their investments to money market funds that are deemed less riskier to weather the effects of the COVID-19 pandemic on the financial markets.

“This way they are able to generate positive albeit lower returns particularly during the height of the pandemic when there was so much uncertainty. We have likewise seen some long-term clients factoring in recovery and are taking the opportunity to buy more equities at current market prices which really presents great upside potential,” Ayuste said.

AUM is the total value of the securities a bank or financial institution manages on behalf of its clients. Like mutual funds, UITFs are pooled funds from different investors, but handled by banks and managed by professional fund managers.