Wealth manager sees shift to longer-term products
Filipino investors are reportedly shifting from short-term, high-yield placements to medium- and long-term investment products, according to Rene Aguirre, Wealth Senior Vice President at Security Bank. This change follows efforts by the bank over the past 12 to 18 months to encourage portfolio diversification among clients.
Security Bank's observations suggest a change in how Filipino investors approach wealth management. Historically, many clients focused on immediate high yields and easy access to funds, often moving money between banks based on interest rates. This short-term focus, as Aguirre notes, can expose investors to reduced returns when interest rates fluctuate.
The bank has actively promoted diversification, leading to a reported double to triple increase in customers and transactions involving medium to longer-term investments over the past year. This indicates a potential growing awareness among investors about the benefits of a broader investment strategy, moving beyond a singular focus on short-term rates.
This shift aligns with Security Bank's stated goal to grow its wealth assets under management (AUM) to P600 billion by the end of 2026, from roughly P560 billion at the close of last year. Encouraging longer-term, diversified portfolios could contribute to more stable asset growth and client relationships, supporting this financial target.
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