ATR Asset Management Group (ATRAM) is optimistic about the possible average growth of the Philippine Stock Exchange index (PSEi) at 7,500 this year after the firm’s investment funds posted double-digit growth in returns.

The PSEi on Wednesday hit 6,119.88, higher by 0.41 percent. All sectors were up, except financials and services.

In a report to the media on Wednesday, ATRAM said company profits will be supported by stronger household consumption and local currency against the US dollar in the second half of the year.

ATRAM managers expect the Bangko Sentral ng Pilipinas (BSP) to ease its benchmark for loan rates during that period, after it kept the policy rate at 5.75 percent this month.

BSP Governor and Monetary Board chairman Eli Remolona Jr. said a gradual reduction of 25 basis points in any of the remaining Monetary Policy meetings this year would be reasonable.

Amid prospects of costlier imported goods globally due to Trump’s high tariffs on US imports, Remolona said a cautious approach is needed in restraining excessive consumer demand toward relatively low inflation rates.

“While disinflation is expected to continue through the middle of the year, benefiting from lower rice prices and a more stable energy market, potential threats to external demand could still slow economic growth,” ATRAM chief investment officer Alessandra Araullo said.

Inflation manageable

Amid manageable inflation rates last year, ATRAM reported highest returns growth for its Global Financials Feeder Fund at 34.46 percent, Global Consumer Trends Feeder Fund at 31.72 percent, and US Equity Opportunity Feeder Fund at 25.67 percent.

“Our disciplined investment and fund selection process, underpinned by in-house research capabilities and understanding of our clients’ distinctive needs, profiles and financial goals, ensure that we offer the best investment solution and continuously adapt to changing market conditions, achieving the best possible outcomes for our investors,” Araullo said.

ATRAM Philippine Sustainable Development and Growth Fund has also become attractive to investors, registering 17.61 percent growth in returns.

Given its effective fund management, ATRAM has expanded its market share for feeder funds in the country to 48 percent and registered P363 billion in assets under management as of December 2024.

While the year-ago figures are impressive, Araullo stressed they are not fully accurate indicators of positive future returns due to economic uncertainties.

ATRAM draws insights from the world’s biggest wealth managers, such as BlackRock, Allianz, and J.P. Morgan.