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Inexpensive global-focused funds that Filipino nationals may invest in?

Discussion in 'Money Matters' started by Zealander, Aug 26, 2018.

  1. Zealander
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    Zealander New Member

    Here in the UK we can easily invest savings in inexpensively-run unit trusts/mutual funds that invest globally, rather than just in the home country. Often these are index or tracker funds. Can this be done in the Philippines? Banks like BPI seem to offer funds with hefty fees, but they focus only on the Philippines. This is for my fiancee's long-term savings and my contribution.
  2. Maley
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    Maley Well-Known Member

    Ph has lots of catching up to do when it comes to financial services.

    But come to think about it- why will you want to buy stocks from industrialized countries when all the portfolios being invested in emerging markets like ph? The average growth trend of the ph stock market is at 12% since 1986- thats a good trend (despite the asian financial downturn etc).
    Split your investment- half in uk and leave some for ph.m to hedge your risks.
    • Agree Agree x 1
  3. Zealander
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    Zealander New Member

    Thanks for the reply, Male. I feel that the Php market is quite volatile, and it seems good to hedge by having assets elsewhere, especially , yes, emerging market. I certainly agree that there is likely a rosy future for the Php, though. Unless or until she is in the UK, it is easier for her to have funds held through a company in the Philippines. I just wondered whether there were the sort of index funds available as we have here offered by the likes of Fidelity, L&G and Vanguard.
  4. Maley
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    Maley Well-Known Member

    Not that i know of. I’ve looked around but it doesnt seem to have that option not sure why but i gues mainly because of the country’s aversion to investments.

    I remember nearly 15 yrs back when i was in my teens, i tried to open an investment a/c - asked nearly all the banks in my city and they told me the same thing- the lowest investment they offer was at least 100kpesos! I only had 10kphp from my savings - a shame lol.

    A lot has changed - you can now open stock a/c with just 5kphp and there are more venues to do so. But the choices are still a bit limited.

    We will get there but we need more investors and a change in ph mindset about investing.
  5. Bluebirdjones
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    Bluebirdjones Member

    The Philippine stock market hasn’t treated people kindly over the last year (-1.43%) or YTD (-8.34%).

    I guess (with hindsight) it would have been slightly better to have bought government bonds. The Philippines 10Y Government Bond is trading with about 6.375% yield. The 1yr bond is trading with a yield about 4.85%.

    But July inflation was 5.7% according to the Philippine Statistics Authority, and the average for 2018 is projected at 4-4.5%.

    So effectively, virtually any income on the bonds will be wiped out by inflation !

    Difficult times.
  6. oss
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    oss Not Here

    Depends on the currency and your own location, I guess.

    I suppose that the only reason we westerners are not piling into 6.375 percent bonds is because in reality they are risky, is the denomination specifically peso?

    I get 4% guaranteed return on one of my investments but as a result it is largely Gilts, so it ain't ever going to get better.
  7. Zealander
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    Zealander New Member

    Thanks. The quandary remains but a bit better informed now!

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