More Filipinos investing money into riskier assets

MANILA, Philippines - A growing number of  Filipinos are starting to look for other ways to invest their hard earned money, helped largely by a liquid financial system and aggressive financial literacy campaigns of local banks, a ranking Citibank official said recently.

“There is an increasing number of Filipinos now signing up for wealth management services as they recognize the need to grow their retirement income.  From just keeping a savings deposit, more Filipinos tend to level up to being investors,’’ said Bea Teh-Tan, Citi Philippines consumer business manager.

Teh-Tan also said that   a rising number of  Filipinos  are now putting their money into riskier assets as consumers become more and more financially informed.

“We are seeing a big shift in the more aggressive instruments among our customers, largely because they do see that there is an upside that is coming in,’’ Teh-Tan said.

Some of these investors are eyeing mutual funds in investment destinations mostly in Asia, including Australia, China and Singapore. “We are seeing a great number of depositors also moving up to invest in the region,” she said.

More customers are becoming interested in products with insurance components,Teh-Tan said. “Some are divesting and putting it in insurance variable unit linked products,” she noted.

Teh-Tan also cited a recent consumer survey conducted by Citi which showed increasing appetite for global access to funds and  investment opportunities.

More than seven out of 10 respondents to the Citi Financial Quotient (Citi Fin-Q) Survey, she noted, expressed preference for global and regional banks.

“This affinity increased with the amount of retirement savings they have set aside,” Teh-Tan said.

“A strong majority or 92 percent want to be able to access all of their finances when traveling or out of the country, while 78 percent are keen to pursue global investment opportunities.”

Citi Fin-Q is an annual online poll that measures the financial quotient of Filipino consumers. Citi has been running the survey since 2007 through research firm Big Picture Qual and Quant Research. The survey covered 3,500 online respondents across seven countries including the Philippines.

With this, Teh-Tan said Citi is well-positioned to mine this opportunity with an extensive wealth management business in the Philippines and across Asia.

Citi’s wealth management service Citigold, which now has more than one million clients, offers clients access to a team of financial experts, coupled with relevant research and analysis on global markets.

“Citigold is one of the most successful brands of Citi in Asia Pacific, where we are widely acknowledged as the finical partner of choice by the affluent market,” Tan said.

“We attribute our continued success to our deep knowledge and expertise not only in financial management but also in anticipating and serving every need our our clients, however unique they are. Whenever our clients are, we ensure that we’re there to provide all their needs as only a trusted global financial institutions can,” she added.

Citi also presented its global banking service suite, with specialized services to appeal to frequent travelers, expatriates or global citizens, or global sophisticated investors.

With about $210 billion in assets under management, Citi is the largest wealth manger in Asia, serving over 696,000 clients. Citi has over 570 retail centers in 12 coutnries in the region, and claims to bank a third of Asia’s billionaires, excluding Japan.