A Rookie’s Guide To Global Investment
Foreign markets can be daunting given complex global securities—here’s how to get started.
We all want to get our money’s worth—especially when it comes to our investments. At a very young age, we are already taught to save pennies through our alkansiya. And for most Filipinos who managed to develop this financial discipline towards adulthood, we learned not just to save but also to invest.
According to Bloomberg, since the Covid-19 lockdown has started, many young Filipino professionals have been interested in stock investing. There has been a surge in online trading and more Filipinos have opened an account to grow their wealth through investments. However, most Filipinos are still limited to investing in local markets because of the lack of knowledge and opportunities to invest in international markets.
Why should you invest globally?
Investing in foreign markets can be quite daunting for beginners, given the complexities of global securities. On top of that, Filipino investors might not have the financial bandwidth required to access global investments.
Majority of Filipinos prefer to invest heavily on Philippine-based companies, which comprise the Philippine Stock Exchange Index (PSEI). Trading and investing in local stocks is a good starting point for Filipino investors, yet it still pales in comparison to the potential returns of investing in foreign stocks.
Many individuals venture into international investments for two main reasons: to grow and diversify their investment portfolio, and to take advantage of the economic growth of other countries. Investing in global companies allows investors to combine stocks from various markets, helping them capitalize on diversification and minimizing the risk of relying on just a single economy.
Additionally, purchasing stocks from international markets is a great way to take advantage of the growth that economies are experiencing, resulting in a more diversified and stable investment portfolio.
Taking your investment to the next level
Now that we know the benefits of investing globally, the next question is this: How can Filipinos invest in international markets?
For new investors, it is advisable to consult with your trusted financial advisor first to create a clear plan in line with your financial situation and investment goals. Next is to find a reliable partner who will help you build your wealth and help expose your investment portfolio to global markets—one good example would be AIA Philam Life.
Recently, AIA Philam Life expanded its offerings with the launch of AIA Elite Funds in collaboration with AIA Investment Management Pte. Ltd. (AIA IM), its Singapore-based affiliate that serves as the hub for regional investment management of the AIA Group.
With these new funds available through AIA Philam Life products, Filipino investors now have access to global investments managed by reputable fund managers.
“AIA IM’s partnership with AIA Philam Life gives Filipinos access to global portfolios managed by best-in-class fund managers that can help them grow their money for long-term investments,” says Shrikant Bhat, AIA IM Head of Funds. “With our team of experienced investment professionals, the Elite Funds combine various strategies to match client risk profiles and focus on delivering long-term investment returns so that our clients can expect reassurance and consistency with their investments.”
Simply put, AIA Philam Life offers three different Elite Fund Portfolios customers can choose from depending on their financial profile and risk appetite—namely, Adventurous Fund, Balanced Fund, and Conservative Fund. Each portfolio has an Equity and Fixed income allocation which can be achieved through a combination of funds.
Each fund is uniquely created for AIA and are sub-managed by leading global investment managers such as Baillie Gifford, Wellington Management, and Blackrock.
“By providing our clients with global investment options, we are helping Filipino investors grow their wealth and achieve their long-term savings goal,” says Arleen Guevara, AIA Philam Life Chief Investment Officer. “With this, we are able to bring our brand purpose to life by helping Filipinos live Healthier, Longer and Better Lives.”
Going global with AIA Philam Life
Investing in foreign markets is a great way to diversify your portfolio and reach your long-term saving objectives. When done right, investing globally can reap great financial resources for you. If you’re interested, now is the best time to make your money work for you without hassle by investing in AIA Philam Life’s Elite Funds, available through Family Provider and Money Works.