Pru Life UK’s asset management and trust unit in the Philippines expects the local economy will rise in the second-quarter of the year amid the country’s easing quarantine restrictions and base effect.
In a statement, Charles Wong, Pru Life UK Investments head of equities said that heightened public spending in 2021 as well as the government’s vaccination program will also support growth, which will drive positive sentiment to equities.
“The vaccination push-through and the government’s restrictions lifting measures will enable people to get back to work. This may help restore the businesses in the supply sector and hopefully taper inflation in this year and 2022,” Wong said.
Building on Wong’s optimism, Ricky Maddatu, Pru Life UK Investments head of fixed income believes that the reopening of the economy may take place faster than expected and further improve the outlook.
Maddatu also recognized the challenges and opportunities in this financial environment, especially for fixed income investments.
“While the environment would most likely be challenging in the short to medium term for fixed income, we see the correction as an opportunity to reposition our portfolios to take advantage of higher interest rates and enter trading positions,” Maddatu said.
“Any risks that we are looking at the medium term can be an opportunity in the long term,” he added.
Recently, Pru Life UK Investments launched two new investment options—PRUInvest PHP Intermediate Term Bond Fund and PRUInvest PHP Balanced Allocation Fund—to help Filipinos build their savings and financial portfolios.
The two new funds cater to varying investment objectives and risk appetite of investors.
Moderate investors looking to achieve capital preservation and income generation can opt for the PRUInvest PHP Intermediate Term Bond Fund.
With the fund's allocation to government bonds and high quality corporate fixed income securities, it can potentially safeguard one’s portfolio during market downturns and at the same time provide moderate and consistent growth.
Meanwhile, aggressive investors looking to achieve capital appreciation may invest in the PRUInvest PHP Balanced Allocation Fund.
It allows investors to maximize the benefits of the fixed income and equity assets classes through its 50-50 portfolio mix.
It is also strategically and moderately invested in both asset classes by Pru Life UK Investments’ fund managers based on current market opportunities, providing growth and stability.