BPI Investment Management Information

Managed by BPI Investment Management Inc. for over two decades, ALFM continues to be one of the top mutual funds in the country, and aims to be the investment vehicle every Filipino can use to find prosperity and build their wealth. Incorporated as Ayala Investment Management Inc. in 1974, BPI Investment manages the ALFM Peso Bond Fund, ALFM Dollar Bond Fund, ALFM Euro Bond Fund, and ALFM Money Market Fund-the largest mutual funds in their respective categories, among others. What sets the firm apart is the strength of its parent company, the Bank of the Philippine Islands (BPI), "strength in terms of reliability, trustworthiness, and excellence," says Jose Mari L. Valmayor, President of BPI Investment, in an interview with BusinessWorld. "Through the ALFM Mutual Funds, we want Filipinos to find joy in investing to achieve their life goals." The firm also manages the largest equity portfolio through combined assets under the Philippine Stock Index Fund (PSIF) and ALFM Growth Fund, at more than P28 Billion as of Q1 2015. Over the years, ALFM Mutual Funds have established a track record of consistent and solid risk-adjusted returns that have made it the leader in the mutual fund industry with 44% market share. This year, ALFM Growth and PSIF remain the top-performing funds based on year-to-date returns for the first quarter of 2015, according to data released by Bloomberg. Further proof of ALFM's strength are the awards it consistently receives, such as in 2014 when the Philippine Investment Funds Association (PIFA) gave top marks to the group's funds based on their 1-year, 3-year, and 5-year returns. The ALFM Money Market Fund earned first place in the PIFA's 1-year and 3-year categories in the Money Market Fund segment. The firm also garnered first place for the ALFM Euro Bond Fund in the 1-year return Bond Fund Category (Foreign Currency Denominated). Success has not kept ALFM and BPI Investment from innovating and creating new channels for its investors to use, as it seeks to reach more Filipinos across the archipelago. BPI Investment is still the only local firm that offers mutual funds via the Internet through BPI Express Online and the BPI Express Mobile App for smartphones. These tools through alternative channels allow ALFM's clients to invest anytime, anywhere, says Mr. Valmayor. "It also gives them the ability to check their transactions and monitor the investments, because they are provided with the market values daily." ALFM believes that simple measures will go a long way toward providing easier investment handling and generating better yields for investors. For instance, Mr. Valmayor says ALFM's regular subscription plan, which allows an investor to program his subscriptions so that he can invest a fixed amount periodically, "is among the simple things which other market players do not currently provide." Apart from getting clients into a habit of investing-as the fixed amount is debited from their deposit account-the Regular Subscription Plan allows investors to "average down their investment cost, which should translate to higher returns for them," Mr. Valmayor added. ALFM has also used social media effectively to reach out to investors and assist its clients with a more personal touch. With its Facebook, Twitter and other digital properties, the fund is communicating more to the younger generation who are already into investing, says Mr. Valmayor. "We've seen quite a few interest from non-investors through these channels," he adds. "Whenever we have exclusive events such as the financial literacy briefing called ALFM Investment 101, we invite them through Facebook." As for the factors behind ALFM and BPI Investment's success, Mr. Valmayor ascribes the fund's growth to the meticulousness of their investment processes. "We are part of a bigger institution (BPI) that is very much known for prudence," he says. "Our clients have trusted our investment process, and they are confident of the high level of corporate governance we subject ourselves to. This high level of diligence is why ALFM Mutual Funds remains the largest and the strongest-and the investment vehicle most worthy of Filipinos' trust for their financial future.