Philippine investors are the most bullish in the region, projecting double-digit returns this year but most have boosted asset to allocation cash and property, based on the research by global insurance giant Manulife.
Based on Manulife’s Investor Sentiment Index in Asia (Manulife ISI), 76 percent of Philippine investors reported being happy with their portfolio in 2014 and a mere 2 percent said they were unhappy.
Of those who are happy, 42 percent attributed their performance to “pure luck” and 15 percent to unexpected market events that increased returns—factors which are neither replicable nor indicate any skill or information-based decision making.
By comparison, satisfied investors elsewhere in Asia mostly attributed their success to prudent investment management, including actively rebalancing and diversifying their portfolios and taking the right amount of risk.
Manulife ISI is a quarterly, proprietary survey measuring and tracking investors’ views across eight markets in the region on their attitudes toward key asset classes and issues related to personal financial planning. Respondents are middle class to affluent investors aged 25 years and above who are the primary decision maker of financial matters in the household and currently have investment products.
The same research suggested that Philippine investors’ satisfaction over their past performance also extended to the future, with 71 percent believing their financial situation will be even better in two years’ time.
On average, they expected returns of 12.4 percent in 2015, more optimistic than the regional average of 10.2 percent. One in five investors expected returns of 20 percent or more.
“Philippine investors may have been satisfied with high returns on their investment in recent years, but as sectors mature and population growth slows, they are likely to find that securing returns will require investment knowledge and skill,” Manulife Philippines president and chief executive officer Ryan Charland said in a press statement, commenting on Manulife ISI.
“Perhaps already reflecting their concern given shifts in global market trends, our research shows that 35 percent of Philippine investors now say their top financial priority this year is to learn more about investing,” he added.