BPI Wealth, the wealth management arm of listed Bank of the Philippine Islands (BPI) is on track to reach its P1.2-trillion target for assets under management (AUM) for this year, its top official said.

“We are now at almost P1.2 trillion for BPI Wealth. If we include other wealth management businesses, which are in other subsidiaries of the bank, that’s a total of P1.45 trillion,” BPI Wealth President and Chief Executive Officer Maria Theresa D. Marcial told reporters on the sidelines of an event on Friday.

This could be an opportune time for long duration fixed-income investments as the Bangko Sentral ng Pilipinas (BSP) is expected to cut interest rates in the next six to 12 months, she added.

“So, what happens when rates are cut? Your investments that are locked in medium- to long-term rates will experience positive appreciation as rates get cut,” Ms. Marcial said.

The BSP’s hawkish stance also means that medium- to long-term instruments have higher yields compared with those seen in the last 10 years, Ms. Marcial said.

“It’s a great opportunity to put in money in bond funds and to lock in long duration fixed-income investments. There’s time. The next six months will be a good opportunity,” Ms. Marcial said.

BSP Governor Eli M. Remolona, Jr. has said that the Monetary Board will likely keep benchmark interest rates steady until the first half of 2024 and has also hinted at an increase in their review next month.

The central bank kept its policy rate unchanged at a near 16-year high of 6.25% for a fourth straight meeting last month after raising borrowing costs by 425 basis points (bps) from May 2022 to March 2023.

It will hold its next policy meeting on Nov. 16. — AMCS

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