Bank of the Philippine Islands (BPI) has introduced peso share classes for two global equity funds, enabling Filipino investors to gain international exposure without the need to convert their pesos into dollars. The move, announced by BPI Wealth on Thursday, covers the BPI World Technology Feeder Fund and the BPI Global Equity Fund of Funds.
This expansion adds to BPI Wealth's existing lineup of peso-denominated global investment products, which require a minimum investment of just P1,000. The launch comes as the bank encourages portfolio diversification amid volatile market conditions.
“This is not simply about introducing new peso class products,” said Maria Theresa Marcial, president and CEO of BPI Wealth. “It is about opening the gateway to global opportunities and making them more accessible to every Filipino investor.”
The BPI World Technology Feeder Fund invests solely in the BlackRock World Technology Fund. Its portfolio is heavily weighted toward semiconductors (47.9%), followed by technology hardware (21.7%), software and services (12.5%), and media and entertainment (8.1%). Geographically, the United States dominates with 73.5%, while South Korea accounts for 10.1%, Taiwan 8.7%, and Japan 3.7%.
Meanwhile, the BPI Global Equity Fund of Funds offers diversified exposure across multiple underlying funds and global markets. The U.S. makes up 55.8% of its portfolio, with information technology representing 26.6%, financials 20.1%, consumer firms 11.4%, and communication services and utilities 10.1%.
BPI Wealth Chief Investment Officer Luis Antonio Zialcita noted that foreign exchange fluctuations will still impact investors because the underlying assets are invested overseas. “When the dollar is strengthening against the peso, your returns are slightly higher. When the dollar weakens against the peso, your returns may be lower,” he explained.
However, Zialcita emphasized that currency exposure can enhance portfolio diversification. “When we’re exposed to the foreign exchange risk, it actually aids in the aim of diversification. A lot of the benefits of diversification to international assets come from the currency exposure,” he said.
BPI Wealth is targeting 20% growth in assets under management this year, from the current P1.83 trillion.