Metrobank eyes UITF growth

REPORT FROM BUSINESSWORLD METROPOLITAN BANK AND TRUST CO. (Metrobank) expects its unit investment trust funds (UITF) to continue growing for the rest of the year as it rides on the stock market’s rise. Rafael G. Ayuste, Jr., Metrobank senior vice-president and deputy head of the bank’s trust banking group expects 6% to 9% growth should the bourse reach 3,500 points to 3,600 points by the end of the year. "There’s still a lot of room for growth in terms of returns particularly in equity funds. A lot of foreign funds are actively looking at the Philippines, which will result in more participation in the equity market," he said in an interview. While yields from fixed income investments may be affected by the potential drop in interest rates, Metrobank is always on the lookout for opportunities to give its investors the best yields, Mr. Ayuste said. "It’s the year of the equities. We are expecting interest rates to drop further, but we are still optimistic on our fixed income funds," he said. Metrobank has 10 types of unit investment trust funds. Aside from UITFs, its trust banking group is also into personal trust, investment management and corporate trust services. Mr. Ayuste said the entire trust business of the bank has grown by 25% in terms of volume from January to August. He also said the bank’s trust business had been insulated from the US credit crunch given the local market’s high liquidity. The bank is also expecting further growth should the central bank approve trust entities’ bid to invest offshore. Metrobank has more than 800 local and international branches, offices, subsidiaries and affiliates. The bank owns the country’s second largest thrift bank, Philippine Savings Bank, as well as local investment house First Metro Investment Corp. — Gerard S. dela Peña/BusinessWorld