Equity, dollar trust products still attractive

The Metropolitan Bank and Trust Co. (Metrobank) is optimistic that the market for investment funds continue to be an attractive option for individual investors.

Metrobank senior vice president and deputy head of its Trust Banking Group Rafael G. Ayuste Jr. noted the performance of the bank’s two new investment fund products that were launched in the first quarter of the year.

These are the Metro Equity Fund and the MetroDollar Money Market Fund.

“Both funds are doing well in terms of absolute yields. We’re looking at these products to serve the needs of emerging affluent individuals whose investment horizon is anywhere from one to two years,” Ayuste added.

The Metro Equity Fund allows first time investors to take advantage of the growth and opportunities of the equities market for a minimum initial investment of only P25,000.

The minimum holding period for the investment is 90 days.

 The MetroDollar Money Market Fund complements Metrobank’s other dollar-denominated investment products like the MetroDollar Bond Fund and MetroDollar Philippine Liquid Fund.

The initial investment for the money market fund is  $10,000 with a holding period of 45 days.

The bank’s other investment funds have been delivering a solid performance on a year-on-year basis and bested other funds in the same class or category.

These are the Metrofund Starter, Metrofund Elite, Metro Invest Plus, Metrofund Peak Earner, Metro Capital Growth Fund, and the MetroDollar Asian Bond Fund.

“There’s still a lot of room for growth in terms of returns particularly in the equity funds,” Ayuste explained, “and a lot of foreign funds are actively looking at the Philippines that would result to more participation in the equity market.”

In the fixed income market, bank officials said there is still some room for interest rates to go down. But whether the market goes up or down, the bank is always on the look-out for opportunities.

“As a fund manager, we take advantage of market movements to provide clients with the best yields,” Ayuste said.

Bank officials said that the key to investing in these funds is to know oneself and the product that one is investing in.

Ayuste said that the prospective individual investor must know their risk appetite and understand the product or type of fund being invested in.

That would allow individual investors to appreciate the volatility of the fund over the short term. For these types of investments, it is important to look at a longer horizon of about six months to one year.

“Although investment funds do not have a guaranteed rate of return and inherently carries more risks than ordinary deposit products, the investment rewards over the long term are worth taking a look into,” Ayuste added.