Assets managed by trusts rebound in March
The assets under management (AUM) of 30 trust entities听rose听41.3%听year-on-year听to P4.6 trillion in March, led by听unit investment trust funds (UITFs), the听Bangko听Sentral听ng Pilipinas (BSP) reported Friday.听
In briefing, BSP Governor Benjamin E. Diokno said the听total听was equivalent to one-fourth of the assets of the banking system,听indicating high levels of liquidity in the sector.听
Some 43.8% of the听assets听were invested in debt securities, 23.5%听in听equities and 23.4% in听bank听deposits, he said.听
鈥淭he notable growth in UITFs is a welcome development,”听he said.听
鈥淭he BSP recognizes the importance of UITFs as an avenue for small retail investors to participate in the securities markets. Certainly,听the online accessibility of UITFs contributed to their growth,” he added.听
At the height of the lockdowns in March 2020, AUM听fell听following the decline in the stock market and as investor听preferences shifted听in light of the heightened听uncertainty.听
“The stable growth of the trust industry reflects the deep-rooted relationship between clients and trust entities, and the continued confidence of investors in the fund and asset management business,鈥听Mr. Diokno said.听
The BSP continues to improve its regulatory framework for trust entities, with more regulations to be issued under its “Trust Business Model Initiative.”听
In June, the central bank issued two draft circulars aiming to streamline the requirements for financial institutions鈥 creation of UITFs.听
Mr. Diokno said听regulators听are also scheduled to release听rules听that will听set听comprehensive investment guidelines for trust entities; enhancements to the onboarding and client suitability assessment process; guidelines听for听measuring the performance of UITFs; guidance to align the management of UITFs with the International Organization of Securities Commissions鈥 Principles; as well as听amendments to听Personal Management Trust regulations.听鈥 Beatrice M.听Laforga听
