The latest Manulife Investor Sentiment Index (MISI) highlights that in the Philippines, cash is still king. Cash accounted for around 43 percent of Filipino investors’ asset portfolio, equal to about 11 months of personal income.
In the previous quarter survey revealed that only a third of investors’ cash was set aside for daily or unexpected expenses. The rest was intended for particular financial goals, including a quarter for retirement savings, general wealth accumulation or simply waiting for an investment opportunity.
“Investors prefer holding cash as they see it as safe or less volatile, and readily available in case of an emergency,” said Ryan Charland, President and Chief Executive Officer, Manulife Philippines. “The survey also suggests they are worried about making the wrong investment decisions,” he added.
In the same survey last year, investors said they were willing to consider moving some of their cash to an investment that offered an income or capital guarantee, a steady or modest return, or the flexibility to access their money whenever needed. Yet the latest survey suggests they remain very conservative, holding excess cash even if it means missing out on safe investment opportunities and their money being eroded by inflation.
”Investors have reasonable concerns, but many may not realize they can address these through insurance. Manulife Philippines now offers insurance products that provide both protection from accidents or emergencies and the opportunity to invest in safe and liquid assets,” according to Mr. Charland.