ATRAM Group expands: Industry shifts with takeover of Ty's First Metro Asset Management

The Ty family’s First Metro Investment Corp. (FMIC), one of the country’s largest investment banks, is selling control of fund manager First Metro Asset Management Corp. (FAMI) to acquisitive wealth management house ATRAM Group.

The company, part of banking giant Metrobank, said its board approved on Oct. 30, 2024 the sale of its entire 70 percent stake in FAMI, which was established two decades ago. 

The buyer is a consortium led by ATRAM Group, MET Holdings, ATRAM Investment Management Partners Corp., and ATR Holdings. The transaction will be completed after the parties meet all closing conditions.  

The deal was first reported by InsiderPH in its Insider Info column.

Manuel Tordesillas
ATRAM Trust Group chair 

Management’s view

“The ATRAM Group is a reputable and respected player in the industry for its expertise in fund management,” First Metro Investment president Anthony Ocampo said in a joint statement on Wednesday.

“We are confident that it can carry out what we have started in FAMI and even bring the company to greater heights,” he said.

“FAMI is a valuable acquisition for us as we aim to expand our fund management operations in the country. It is a strategic business move given its mix of funds,” Manuel Tordesillas, ATR Holdings president and ATRAM Trust Corp. chair, said in the same statement.

First Metro wants to focus on investment banking

Jonathan Ravelas, veteran forecaster, strategist, and senior adviser at Reyes Tacandong & Co., said large banks are shifting their focus to more profitable areas.

He said mutual funds have also been underperforming amid weak market conditions.

“Because of these challenges, some of these [fund management firms] are thinking 'let’s let experts like ATRAM do it' since that’s their focus,” Ravelas said.

Anthony Ocampo
First Metro Investment president 

ATRAM expands through acquisitions

ATRAM, the fourth largest among active investment houses, manages over P385 billion in assets as of Sept. 30.

“These are bold moves by ATRAM to quickly scale up its trust and asset management business and thereby improve profitability amidst increasing competition from much larger fund managers and trust entities,” said Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.

“The nature and economics of the industry favor the players who have the scale, talent, and efficiency to offer the best products at the least cost, so market consolidation makes sense,” he added.

ATRAM, which took British insurer Pru Life’s local fund management arm in 2023, is also in talks with the Aboitiz family-led Union Bank of the Philippines to merge their trust businesses.

What’s next?

The entry of ATRAM Group will not impact the company’s current leadership team, ensuring continuity and stability in operations, the company said in the joint statement.

“The parties in this transaction wish to assure FAMI’s clients of a smooth transition and uninterrupted continuation of business,” Tordesillas said.

“Part of FAMI’s mission is to be a trusted steward who promotes investment literacy, creates innovative investment solutions, and provides exceptional customer experience, thereby transforming Filipinos from savers to investors. ATR Holdings and ATRAM are enthusiastic to be given the opportunity to carry out FAMI’s mission further,” he added.

About the author
Miguel R. Camus
Miguel R. Camus

Miguel R. Camus has been a reporter covering various domestic business topics since 2009.

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