The Rizal Commercial Banking Corp. (RCBC) sees encouraging developments for investments in the offshore markets on the back of strong signs of economic recovery.
RCBC Trust and Investments Group head Robert B. Ramos explained that positive growth registered in terms of gross domestic product (GDP) for different countries signals a positive recovery amid the Coronavirus disease 2019 (Covid19) pandemic.
“With the recent announcement of Pfizer and BioNtech’s more than 90 percent effective vaccine testing, the market is now seeing the light at the end of the tunnel. We also saw quarter on quarter improvement in terms of GDP on a per country basis globally,” Ramos said.
The bank officer pointed out that although challenges remain in terms of offshore investments as the direct and indirect impact of the pandemic varies per region or country, corporates should grab opportunities to convert their investments to income.
Before investing funds in offshore markets, Ramos added that factors such as risk assessment on the financial instrument should be initiated, as well as analyzing one’s cash flow position, and identifying the value of one’s investment in a specific market moving forward.
He also mentioned that some RCBC clients expressed interest in investing their funds offshore, specifically those who have excess funds or seeking to diversify their portfolios.
“For our clients who have excess liquidity there is some interest. I wouldn’t know how big but they are looking offshore,” he added.
Offshore investments are funds invested in different types of financial instruments within another jurisdiction apart from the investor’s home country. Investments made offshore can be in the form of bonds, stocks, mutual funds, real estate, and life insurance, among others.