Citi Philippines sees brighter prospects for 2014

MANILA, Philippines - The country’s largest foreign bank recently hosted its annual investor event sharing the 2014 Market Outlook to its wealth management clients.

Citi Philippines’ senior officials, led by CEO Batara Sianturi welcomed more than 500 Citigold clients at the Edsa Shangri-La hotel, the venue of the first of three meetings that the bank hosted around the country.

Haren Shah, chief investment strategist of Citi in Asia Pacific, made the encouraging pronouncement that “growth is the next driving force. We are expecting a global growth from last year’s 2.5 percent to this year’s 3.2 percent. With signs that the US economy is picking up momentum, the prospects for 2014 look brighter.”

Despite the presence of geopolitical issues, fiscal concerns, and sovereign accidents, investors should expect moderate risks this time, explained Shah. “They are still there, but enough progress has been attained that all downside tail events seem less threatening today.”

This exclusive yearly gathering of Citigold customers brings together Citi’s global experts, who share investment prospects for the upcoming year. Citigold is the pioneer and leader in wealth management service in the country.

In his remarks, Sianturi said: “At Citi, it is our commitment to provide you, our valued Citigold clients, relevant and timely market updates which could guide you in preserving and managing your wealth; alongside world-class products and global banking services that only Citi can offer.”  Also present to welcome the positive outlook for the New Year were Consumer Business Manager Bea Tan, Retail Banking Head Anthony Thomas, and Citigold Wealth Management Head Judith Go.

The event also coincided with the celebration of the Lunar New Year of the Wooden Horse, and as guests entered the festive venue, they were delighted by the sight of a huge golden money tree laden with lucky red envelopes or angpao.

The event’s prosperity ambiance complemented Shah’s good news which he said was drawn from the recovery of the US economy.

“Consumer demand picks up so businesses related to industrials, materials, and information technology are still on top of the list. Also, with the improving status of the US economy, export in China is expected to ascend,” he said.

Ben Panares, president of Citicorp Financial Services and Insurance Brokerage Philippines Inc., motivated Philippine investors to explore exposure into regional, emerging, and global markets for diversification as these are just some ways on how the local investor can weather the storm. Philippine equity market remains fairly valued, and while near term bumps and volatility will be a concern, the long term trends appear positive. To prepare the local investor for rough roads along the way, Citi advised clients to “always maintain a balanced approach.”

One option to consider is to use a dollar cost averaging approach like investing on a monthly basis for the equity exposure so the investor can have growth potential over time on his/her portfolio. It would also be advisable to have a portion on bonds and savings/time deposit to provide stability to one’s portfolio.