MANILA: The Philippine central bank sees around 100 billion pesos (US$1.7 billion) being poured into a voluntary retirement investment programme that could help boost the domestic capital market, according to an official.
Bangko Sentral ng Pilipinas on Tuesday (July 29) signed an agreement with banks and financial firms to pilot an initiative that will allow them to share financial data, provided the customer agrees.
The goal is to make the Personal Equity and Retirement Account, or PERA, more accessible by allowing clients to open a PERA account using their existing personal data from participating financial institutions.
"Economically, if just one million Filipinos take full advantage of the programme, we could see 100 billion pesos annually channelled into long-term local investments,” said Eugene Teves, BSP managing director and chief information officer.
"That means deeper capital markets and increased financial resilience,” he said.
In an interview, ATRAM Group Chief Executive Officer Michael Ferrer said the asset manager, which acts as an administrator of the PERA fund, isn’t targeting a particular level of returns as the investment mix is typically based on clients’ risk profile.
For instance, a balanced portfolio, where stocks and bonds will have a 50-50 sharing, will be a good mix for clients in their mid-30s, he said.
"The bonds now offer good rates,” Ferrer said. The Philippine Stock Exchange index also "definitely has an upside from here, maybe 10% to 15%, over the next 12 to 18 months,” he added. - Bloomberg
