Diversified portfolio ideal in low rates regime — AUB

Lawrence Agcaoili – The Philippine Star

September 30, 2021 | 12:00am


MANILA, Philippines — Investors in search of higher-yielding assets should diversify their portfolio amid a low interest rate environment, a bank official said.

Andrew Chua, senior vice president and head of trust at Asia United Bank (AUB), said investors could invest in the US dollar bond market through AUB Gold Dollar Fund (GDF).

“There is no better time to invest than now as deposit rates are close to all-time lows. It is best to diversify to higher yielding assets to protect your funds against inflation. The AUB Gold Dollar Fund provides such an outlet,” Chua said.

Amid the pandemic, Chua said the Rebisco-led bank is committed to providing excellent services to clients.

“We remain committed to offer sound advice and excellent service to our clients, more so during this period of great uncertainty due to the pandemic,” Chua said.

The fund of one of the country’s fastest-growing publicly listed banks offers retail investors access to the US dollar bond market normally reserved for foreigners and high net worth investors.

In addition, it offers flexibility as returns can be withdrawn any time after the minimum holding period and investors benefit from a team of professional fund managers that will ensure their investments are kept safe as risk and returns are balanced appropriately.

The GDF with a year-on-year return of 5.33 percent as of Sept. 23 invests in a diversified portfolio of fixed income securities and offers a rate of return equivalent to the rolling yield of the five-year US Treasury notes, net of fees.

Due to the its stellar performance, AUB was able to sustain its five-year winning streak when it was awarded by the CFA Society Philippines as the Best Managed Fund in the Dollar Medium-Term Bond category.

For the sixth edition of the Best Managed Fund Awards, a total of 71 funds from 14 investment houses and trust institutions joined the search.

CFA Society Philippines president Robert Ramos said the search was in line with our association’s thrust of further educating retail investors by introducing them to risk-adjusted fund performance.

“We further hope that with more enlightened investors, fund managers would exercise more prudence and employ higher standards of ethics and investment excellence in managing investable funds by putting the interests of their investors first above their own,” Ramos added.

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