Bank of the Philippine Islands (BPI) led by bankero TG Limcaoco is launching the first of its kind mutual fund in the country that focuses on real estate, the ALFM Real Estate Income Fund (ALFM REIF) by the middle of next month.
Through its wholly-owned subsidiary BPI Investment Management Inc. (BIMI), the peso-dominated equity mutual fund is authorized to offer up to P100 billion units of participation to the public with an initial net asset value of P10 per unit.
”Diversifying into real estate, both through REITs and real estate-linked securities, is a good hedge against inflation, especially with inflation driven by the current market conditions,” BIMI president Martin Enrile said.
The new product aims to provide a stable stream of dividends and generate long-term capital growth by investing in equity securities, predominantly real estate investment trusts (REITs) issued locally and abroad as well as other collective investment schemes with the same investment objectives. It is ideal for aggressive investors with an investment horizon of more than five years
For as low as a P5,000-minimum initial investment and maintaining balance via BPI Branches, the fund enables investors to invest in the growing real estate sector and earn dividend income, on top of capital appreciation.
BIMI is one of the Philippines’ largest managers of mutual funds with P218 billion assets under management as of end June 30 this year cornering approximately 50 percent of the industry.