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Century Pacific aims to double its business in 5 years

By Revin Mikhael D. Ochave, Reporter

CENTURY Pacific Food, Inc. (CNPF) is targeting to double its business in the next five years and sustain its momentum amid the coronavirus disease 2019 (COVID-19) pandemic.

Christopher T. Po, CNPF executive chairman, said during the annual stockholders’ meeting virtually held on Wednesday the company is also aiming to sustain a compounded annual growth rate of 10% to 15% for both revenues and profits.

“While we are on track to hit our original topline growth target of 10% to 15% for the year, [we] expect net income to grow closer to 20% due largely to tax incentives [offered] by the government. All in all, our 2021 forecast is still in line with our five-year growth plan driven by the unique nature of our portfolio,” Mr. Po said.

“In challenging times, we outperform the market due to the essentials and staples nature of our portfolio,” he added.

Moving forward, Mr. Po said that the company is open to acquisitions but said it would prefer domestic businesses rather than foreign ones.

“The execution risk is significantly lower, and I think that’s what our stockholders, most of them at least, would want to see is that we really focus on the main growth area and the markets that we know in the Philippines,” Mr. Po said.

“We do have a growing branded business outside of the Philippines, but I would say our expertise really is in this market,” he added.

Mr. Po said the company is gearing to compete in the global market when it comes to plant-based meat products with its own brand called unMEAT.

According to CNPF Executive Vice-President and Chief Operating Officer Gregory H. Banzon, unMEAT is already displayed in stores within the United Arab Emirates, where it has received good response.

“We’re making presentations to the rest of the countries within the Gulf Cooperation Council — Qatar, Oman, and Kuwait are the next three markets. We’re also shipping out our first two field containers to the United States by the first week of July,” Mr. Banzon said.

“I think [the] plant-based [segment] is going to be a category that will be on a very sharp growth trajectory and we want to get in early,” he added.

For the first quarter of 2021, CNPF posted a 24% increase in net income to P1.28 billion. Its consolidated revenues also rose 11% to P13.39 billion.

Shares of CNPF on Wednesday rose 1.08% or 25 centavos to close at P23.40 apiece.

Facebook launches its newsletter product Bulletin to rival Substack

FACEBOOK, Inc. launched its newsletter product “Bulletin” on Tuesday, a standalone platform for free and paid articles and podcasts that will aim to rival Substack.

CEO Mark Zuckerberg announced the platform, which is live at Bulletin.com, and introduced some of the writers that the company has recruited in a live audio room on Facebook.

Facebook is pushing to compete in the fast-growing e-mail newsletter trend, as high-profile journalists and writers have left media companies over the past year to strike out on their own.

Self-publishing platform Substack is a leader in helping writers sell e-mail subscriptions, and has lured journalists with cash advances. Other tech companies are also competing in the field, including Twitter, Inc., which acquired newsletter platform Revue.

Facebook said it would not take a cut of Bulletin creators’ revenue at launch and that creators can choose their own subscription prices. It is launching the platform with a number of high-profile personalities and writers, including sportscaster Erin Andrews, author Malcolm Gladwell and Queer Eye star Tan France.

The social network has had a tumultuous relationship with the news industry, which came to a head in February after a showdown with the Australian government over paying news outlets for content. Following the conflict, Facebook pledged to invest $1 billion in the news industry globally over the next three years.

The company said the articles and podcasts would also be available through the Facebook News Feed and through Facebook’s News section.

“We built Bulletin on a separate website to enable creators to grow their audience in ways that are not exclusively dependent on the Facebook platform,” it said on the new site.

Facebook said it was primarily launching with US creators and it was not accepting new ones at this time. But it said the Bulletin site was available worldwide and it would look to add more international names after the beta test.

In April, Facebook said it would pay $5 million to recruit independent local journalists to write for its new publishing platform. — Reuters

Yields on term deposits mixed after PHL global bond offering

BW FILE PHOTO

YIELDS ON THE central bank’s term deposits ended mixed on Wednesday, with more investors opting for the longer tenor following the country’s global bond sale.

Total bids for the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP) amounted to P652.901 billion on Wednesday, above the P530 billion on offer as well as the P645.342 billion logged in the previous week’s auction.

Broken down, demand for the one-week papers stood at P208.413 billion, higher than the P140 billion auctioned off by the BSP but failing to beat the P220.938 billion in tenders seen last week.

Banks asked for yields ranging from 1.7% to 1.7345%, a narrower range compared with the 1.7% to 1.75% seen a week ago. This caused the average rate of the seven-day term deposits to drop by 1.15 basis points (bps) to 1.7261% from 1.7376% previously.

Meanwhile, tenders for the 14-day papers amounted to P444.488 billion, surpassing the P390-billion offering as well as the P424.404 billion in demand seen a week ago.

Accepted rates for the tenor ranged from 1.75% to 1.83%, a slightly slimmer margin versus the 1.75% to 1.8499% band seen in the previous week’s auction. With this, the two-week paper’s average rate inched up by 0.29 bp to 1.8114% from the 1.8085% quoted on June 23.

The central bank did not offer the 28-day term deposits for the 36th straight week to give way to its weekly offerings of bills with the same tenor.

The term deposits and the BSP’s short-term securities are used by the central bank to gather excess liquidity in the financial system and to better guide market rates.

“The TDF auction results continue to show market participants’ search for yield in the longer tenor amid ample liquidity in the financial system. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity condition and market developments,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement.

BSP Governor Benjamin E. Diokno last month said the central bank’s policy measures have infused P2.2 trillion in fresh liquidity into the financial system, which is equivalent to 12.1% of gross domestic product.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said TDF yields ended mixed following the government’s global bond sale earlier this week.

The government on Monday raised $3 billion (P146 billion) from the sale of US dollar-denominated global bonds in a dual-tranche offering, which will be used to fund the national budget.

National Treasurer Rosalia V. de Leon said the 25-year tranche raised $2.25 billion, while the 10.5-year tranche generated $750 million.

The 10.5-year bonds were priced at 60 bps over the benchmark US Treasury yield, carrying a 1.95% coupon, while the 25-year debt papers fetched a coupon of 3.2%, the Bureau of the Treasury said. — Luz Wendy T. Noble

Loud and proud and yummy

PHOTO FROM INSTAGRAM.COM/FFTGCAFE

WELL — it’s all in the name isn’t it? Food for The Gays makes its beliefs and its origins as obvious the rainbow flag permanently displayed on its door.

Food for the Gays (sometimes called FFTG for short) was a guest at Google’s Pride Conversations: Championing LGBTQ+ MSMEs, a conference made possible by its remote meeting app, Google Meets, and streamed at YouTube. BusinessWorld caught up with FFTG’s co-founder, Nariese Giangan earlier this week (also through Google Meets), on the penultimate day of Pride Month.

Ms. Giangan took the familiar dessert and changed the word “gods” to “gays” for the name of the cafe and online food business. “Feeling ko talaga noong time na yon, funny ako (I really felt I was so funny during that time),” she said.

Yun rin ginamit ko, para rin nagsusumigaw na may-ari nito, tomboy (That’s what I used, so it can shout that the owner is a lesbian).” (Tomboy being a reclaimed word for Filipinas to express themselves as lesbian).

The branding worked, as some of her most fervent customers are members of the LGBTQ community, as well as their allies — who weren’t put off by the name. “I expected for it not to sell so well [to straight people], but you know that feeling where they’ll say, I’ll support this business so I can show I’m an ally,” she told BusinessWorld in a mix of Filipino and English.

She also noted that from the start, aside from LGBTQ+ investors, straight relatives and friends helped her to set up the Quezon City business, one she started due to the pandemic putting a damper on her plans to fly abroad and use her newly found culinary skills. Prior to being proprietors of a cafe, she and her partner had been in the creative industries. Still, the cafe was always in the books: she says that the restaurant was inspired by The Planet Cafe, a frequent setting on the early 2000s show, The L Word. “Gusto ko ng ganyan, kasi parang wala pang ganon dito (I wanted something like that, because it didn’t seem likes there was one like that here),” she said.

She has a point: most of the meeting places and safe spaces for LGBTQ+ individuals are bars. She said that when she opened her cafe in February this year, some of her customers sent feedback that they liked that the cafe was mostly a safe — and sober — space. “Marami talaga, kahit na mga beks, na hindi naman talaga mahilig pumarty. Mga twice a year, charot! (A lot of people, even the gays, don’t actually like to party. Maybe twice a year. Kidding!).”

Ms. Giangan discussed the importance of safe spaces, and how changing times and needs made her rethink what it meant for a space to be safe. “Before, ang understanding ko lang ng safe space ay ‘Okay, pwede tayo dito’ (Before, muy understanding of safe spaces was ‘Okay, we can stay here’),” she said. “Hindi lang pala ganon yon. Kailangan mo rin silang protektahan sa mga gulo ng mundo (It turns out that it isn’t only that. You need to protect them from the world’s troubles).”

Kahit naman sabihin natin na mas accepting or mas bukas na ang maraming tao, nandoon pa rin kasi yung problema (Even if you say that people now are more accepting or more open, the problems are still there),” she said. Some of the problems she cited include the lack of marriage equality for LGBTQ+ individuals, as well as the continuing violence against them.

Still, she does say that her business neighbors are curious, accepting, and even friendly. She credits the present friendly climate to increased queer representation in media.

Malaking bagay na maraming materyal na available sa social media (It’s a huge thing that there’s a lot of material available on social media),” she says, citing the mainstreaming of boys’ and girls’ love series, as well as the show RuPaul’s Drag Race. “Naeexpose sila doon, and nagkakaroon ka ng chance to correct kung ano man yung magiging comment nila about it (They get exposed to that, and you get a chance to correct whatever comments they may have about it).”

The food is relatively normal, with Vietnamese Banh Mi, a selection of pastas, salads, pizzas, and several pastries. One thing that stands out is a rainbow grilled-cheese sandwich, which shows the colors of the Pride flag when pulled apart.

Asked if the cafe would have survived on its own merits and not its LGBTQ+-friendly branding, she said, “Hindi ko siya mahihiwalay sa akin eh. Ito yung mundong ginagalawan ko. (I can’t separate that from myself. This is the world I move in).”

In a world where 69 countries have laws that criminalize homosexuality, it’s not always an advantage to be out and about. Still, Ms. Giangan believes that there is an edge to being LGBTQ+ and in business — and it all has to do with the struggle.

Lahat tayo, ang tindi ng naging struggles natin para marating kung nasaan tayo ngayon. Iba talaga ang pagiging palaban natin (All of us have met with tremendous struggle to get where we are today. Our being combatant is something else),” she notes. “Gusto nating patunayan ang sarili natin, hindi lang sa LGBT community, kundi sa lahat. Kaya ibang level din yung drive natin to succeed (We want to prove ourselves, not just to the LGBT community, but to everyone. That’s why our drive to succeed is on another level).” — Joseph L. Garcia

FFTG is located at #58, 13th Ave., Cubao, Quezon City. It is open Tuesday to Sunday, noon to 9 p.m., on a reservation basis. Reach out through Instagram @fftgcafe and Facebook @FoodForTheGays.

SEC clears IPO of Saint Pio’s Medical Center

THE Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of Saint Pio’s Medical Center, Inc. (SPMCI) for up to P480-million worth of shares.

“In its meeting on June 29, the Commission En Banc resolved to render effective SPMCI’s registration statement covering 16,000 common shares, subject to the companies’ compliance with certain remaining requirements,” the SEC said in a statement on Wednesday.

The SEC said the intended market for the said IPO will be medical specialists and the public, adding that SPMCI will offer 1,600 blocks consisting of 10 shares each, priced from P10,000 to P300,000 per block.

“The shares will be traded over the counter through the company’s directors,” the SEC said.

The commission said SPMCI expects to net P478.40 million from the offer, with the proceeds to be allocated for the construction expenses of its hospital amounting to P392 million and for the acquisition of medical equipment.

“Physicians and other medical specialists who subscribe to at least one block or 10 shares from the offer will be allowed to practice in the company’s hospital, subject to restrictions, limitations, and obligations as may be imposed by SPMCI,” the SEC said.

Based on its website, SPMCI is building a hospital at Barangay Palanginan in the town of Iba, Zambales.

“SPMCI shifts the focus of health systems toward client-centered healthcare where data becomes central to health systems — electronic record systems and customized treatment protocols. SPMC enables new models of care, such as protocol-driven healthcare to improve quality of care, and better access to medical services,” the firm said in its website.

Separately, the SEC said on Wednesday that the Commission on Audit (CoA) had given the corporate regulator the highest audit rating for 2020.

In a statement, it said state auditor Concepcion C. Reyes had given an unmodified opinion on the fairness of the presentation of the SEC’s financial statements for 2020 based on an independent auditor’s report dated May 20.

“In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the SEC as at Dec. 31, 2020, and its financial performance, changes in net assets/equity, cash flows, comparison of budget and actual amounts for the year then ended, and notes to the financial statements, in accordance with International Public Sector Accounting Standards (IPSAS),” the report said.

Citing IPSAS, the SEC said an unmodified opinion is awarded when auditors determine that the financial statements are “free from material misstatements which could arise from either error or fraud.” — Revin Mikhael D. Ochave

Microsoft’s Surface Pro 7+ for Business is ideal for those working, studying on the go

MICROSOFT Corp. recently introduced its Surface Pro 7+ for Business, aimed at empowering businesses and students amid a pandemic crisis that has accelerated digital transformation across industries.

The Surface Pro 7+ for Business is ideal for bosses, employees and students who work or study from anywhere and everywhere, thanks to its faster performance and improved all-day battery life of up to 15 hours.

The device, which comes with optional LTE Advanced for fast connection, is powered by the latest 11th-gen Intel Core processors. It comes with up to 32 gigabytes (GB) of random-access memory (RAM) and 1 terabyte (TB) of storage.

After long hours of work outside, users can see the device charged to 80% in less than an hour.

Another new feature is the removable solid-state drive (SSD), which allows users to have more control over their data.

The Surface Pro 7+ for Business is a versatile device. It can be used as a touch-screen tablet or a laptop with the Surface Pro Signature Keyboard. It also has a Studio mode for the 15-degree writing and drawing angle with Surface Pen.

Users can stay connected even when traveling and when WiFi is unavailable as the 1.7-pound device comes with an option for 4G LTE.

The ultra-light Surface Pro 7+ also has USB-C and USB-A ports for charging devices or connecting accessories.

The device, which includes Windows 10 Pro and Microsoft 365 applications, sports a 12.3” PixelSense display with a resolution of 2736 x 1824 pixels.

Microsoft integrated front and rear-facing cameras into the device with 1080p full high-definition video along with Dolby Atmos speakers and dual far-field Studio Mics. — Arjay L. Balinbin

Note: Microsoft provided BusinessWorld with a test unit for this review.

Asia United Bank targets to grow assets under management by 20%

BW FILE PHOTO

ASIA UNITED Bank Corp. (AUB) is looking to grow its trust business’ assets under management (AUM) by 20% to P32 billion amid improving investor confidence due to better economic prospects, it said in a statement on Wednesday.

The bank’s growth target, if realized, will be faster than the 12% increase in its AUMs in 2020 to P26.4 billion.

“The looser monetary policy of the Bangko Sentral ng Pilipinas (BSP) enabled AUB to generate returns higher than deposit rates through investments,” AUB said.

AUB Senior Vice-President and Head of Trust Andrew A. Chua said more clients parked their excess cash in unit investment trust funds last year after the BSP cut benchmark interest rates to record lows.

For this year, Mr. Chua expects investors to continue opting for fixed-income assets for a stable flow of income. However, returns from these investments may be small as inflation remains elevated while the BSP has also kept borrowing costs steady, making real interest rates negative.

Inflation stood at 4.5% for the third straight month in May, above the BSP’s 2-4% target but slower than the 4.7% in February.

“Since inflation is expected to hover at the 4% level, this means you would need to invest in an asset that would generate over 5% gross. Looking at the 10-year fixed-income treasury notes now (which stand below 4%), this is hardly possible,” Mr. Chua said.

He said investors are recommended to keep a mixed portfolio of both fixed-income assets and equities to maximize their funds.

“Despite the volatile nature of equities, we still believe that over the medium- to long-term horizon, they will still provide growth ranging from 8-10%. Mixing this with fixed income will definitely enhance and protect investors from inflation,” Mr. Chua said.

AUB last week said it targets to grow its net earnings by 30% to P4 billion this year from P3 billion in 2020. The bank is optimistic that improving consumer confidence will boost its lending business.

The bank’s net income dropped by 38% to P736 million in the first quarter from a year earlier due to higher loan loss provisions.

AUB’s shares closed at P46.10 apiece on Wednesday, down by five centavos or 0.11% from its previous finish. — L.W.T. Noble

Appliance maker goes green

ONE wouldn’t normally think of appliances as weapons against climate change and pollution, but here we are, about to extol the green virtues of some.

During last week’s Beko Global Sustainability Virtual Launch, Beko presented its BioCoffee Espresso Machine, AutoDose Dishwasher, EcoTub Washing Machine & Washer Dryer, GreenDry Tumble Dryer, EcoFiber Oven, and BioCycle Refrigerator. In a speech prior to the presentation, Hakan Bulgurlu, CEO of Beko parent Arçelik, discussed their environmental thrust. “You can see our vision statement behind me: ‘respecting the world; respected worldwide.’”

“We live by this statement in every area of our business and our personal lives,” he said.

He talked about the commitments they have made to reduce their emissions: these include a commitment to reduce its Scope 1 and Scope 2 emissions by 30% by 2030, and reducing Scope 3 emissions by 15%. Others include using 40% recycled plastic, recycling 99% of manufacturing waste, and reducing water consumption by 45%. They have also been carbon-neutral for the past two years.

“Many of my contemporary counterparts claim that they will become carbon-neutral by 2030, 2040, some even 2050. All I’m saying is that it’s too late. We have to act today and we have to put our responsibility towards the planet before anything else,” said Mr. Bulgurlu.

The espresso machine, for example, is developed with bio-composite technology, and each Espresso Machine is made of five cups of coffee residue, reducing its carbon footprint by 5% in bio-composite parts. The dishwasher, meanwhile, dispenses the right amount of detergent, and in each wash, up to 28% less detergent is used.

The fridge is made from durable components composed of bio-based plastics, and the egg trays are made, appropriately, from eggshell wastes and bioplastics (each egg tray boasts of using eggshell waste from five eggs). The fridge’s fan cover is made of 100% bio-based plastics from sustainable resources such as corn starch or sugarcane, and the door seal is made from 25% bio-based (soybean oil) materials.

The oven, meanwhile, uses a sustainable material from recycled fishnet waste and industrial thread waste, and 50% of the BI Oven inner display cover is made from industrial thread waste. The dryer uses recycled plastic in 15% of its plastic parts on average, including in the water tank housing and back cover.

Finally, the washing machine contains approximately up to 60 recycled 0.5L PET bottles, particularly in the tubs of the washing machines and washer dryers on certain models.

Why do they do it?

Mr. Bulgurlu says that some companies believe that going green costs money. He counters: “There are many, many ways where you can do the right thing, without any cost.”

“Doing the right thing is also profitable, or can make you more cost-competitive. We have lived this example, and we want to share this example with many companies.”

Adapting their methods and products for a pro-environment policy is also an adaptive measure, he said. “I believe that the companies that do the right things by the planet will get ahead, and the ones that don’t will disappear. Sustainability doesn’t only mean doing the right thing by the planet and the environment —  it also means making your business more sustainable.

“By doing right, you will win; by doing wrong, you will lose.”

The brand has been in the Philippine market for five years and is currently available in select SM Appliance Centers, Robinsons, All Home, Anson’s, Savers, Great World, and Manila Imperial Appliances Stores, and Asian Home Appliance Center in Cebu, and in e-commerce partners: Lazada and Household Appliances Trading (hat.com.ph). For information, follow @bekoph on Facebook and Instagram or go to http://www.beko.ph. — J.L. Garcia

Cirtek receives PSE nod for stock rights offer, warrants

CIRTEK Holdings Philippines Corp. received the approval of The Philippine Stock Exchange, Inc. (PSE) for its stock rights offering with bonus detachable warrants.

The company said in regulatory filing on Wednesday that shareholders eligible to participate in the stock rights offering should pass the requisite documents and participate during the offer period scheduled on July 12 to July 22.

Listing for both the rights shares and the bonus detachable warrants are tentatively scheduled for Aug. 16, while the ex-rights date and record date will be on July 2 and July 7, respectively.

Further, the company announced that investors who hold common shares of Cirtek before the ex-rights date will be entitled to subscribe to additional common shares, known as entitlement rights, at a price of P5.50.

“The Entitlement Rights shall be subject to the approval of the Securities and Exchange Commission (SEC) of Cirtek’s application for increase in authorized capital stock. For every one Entitlement Right subscribed to, one bonus detachable warrant shall be issued free of charge to the investor and shall be issued as part of the subscription to the Entitlement Rights,” Cirtek said.

“Each bonus detachable warrant entitles the investor the right to subscribe to one underlying common share of Cirtek beginning on the 12th month until the 36th month from issue date at an exercise price of P5.50. The bonus detachable warrants shall be exercisable during business hours within the first two trading days of each month,” it added.

According to Cirtek, an investor will be entitled to one entitlement right for every 1.68 common shares held.

“Correspondingly, for every one Entitlement Right subscribed to, the investor will be issued one bonus detachable warrant with one underlying common share of Cirtek to be issued upon exercise of the bonus detachable warrant,” the company said.

On June 25, Cirtek announced the final offer price of its rights share at P5.50 and the final exercise price of its bonus detachable warrants also at P5.50.

“[The company] intends to list 249,442,472 common shares and 249,442,472 Bonus Detachable Warrants with 249,442,472 underlying common shares,” Cirtek said.

“Cirtek expects to raise gross proceeds of P1,371,933,596 from the stock rights offering of 249,442,472 Entitlement Rights. Net proceeds will be used to primarily finance the working capital of Quintel USA, Inc., Cirtek Electronics Corp. and Cirtek Advanced Technologies and Solutions, Inc., as well as to refinance the existing debt and pay out short-term obligations of Cirtek Electronics Corp.,” it added.

On Wednesday, shares of Cirtek at the stock exchange improved 0.98% or six centavos to end at P6.18 per share. — Revin Mikhael D. Ochave

With 3D printed ‘steaks,’ Spanish startup eyes the mass market

FACEBOOK.COM/NOVAMEAT

BARCELONA —  As demand for plant-based alternatives to meat rises, Barcelona-based startup Novameat is using its 3D printing technology to manufacture vegetarian “steaks” that it hopes will reach the mass market next year.

Novameat plans to sell its “steaks” directly to consumers and to businesses such as restaurants interested in producing plant-based meat, business development manager Alexandre Campos told Reuters on Tuesday.

The Spanish company, which developed its technology in 2018, was showing how its latest 3D printer produced food at Barcelona’s Mobile World Congress (MWC).

“It didn’t have the feeling of a traditional steak but I was positively surprised because I did not expect that the texture would be so well achieved,” said Ferran Gregori, after trying one of the “steaks” printed at Novameat’s stand at the world’s largest telecoms gathering.

The company uses 3D technology to test recipes, introducing ingredients through capsules because it is a cheaper process than mass-producing, Mr. Campos said.

Once a model is considered successful, it could then be produced on a larger scale in bigger machines not using 3D technology, manufacturing up to 500 kg of fake meat per hour, he added.

Mr. Campos said the startup’s aim had been to recreate the muscle fibers of animal meat but using 100% plant-based ingredients. He forecast the plant-based industry would keep growing at double-digit rates in the foreseeable future.

The company also said it was producing the fake meat for environmental reasons.

“(We seek to) replace animal meat for something that is better for the planet, ourselves and animals,” Mr. Campos said. — Reuters

Investing for a longer term key to riding out market swings

INVESTORS should expand their investment horizon to increase the chances of getting higher income, especially during times of crises when markets are highly volatile.

“The global market turmoil triggered by the pandemic has underscored the view that as investment horizon increases, the chances of earning positive returns also increase as more time helps smooth out the volatility of returns,” Manulife Investment Management and Trust Corp. (Manulife IM Philippines) said in a note on Wednesday.

Its study showed a 10-year investment horizon for equities in Philippine Stock Exchange index (PSEi) will likely yield a 100% positive return, better than the 94% rate for a five-year duration and the 68% for one year.

Manulife IM Philippines said in the past, equity markets generally posted a sharp rebound after crisis-induced sell-offs, as observed in markets in the Philippines, the United States, and Hong Kong/China, which have posted returns of 39%, 75% and 56%, respectively, a year after hitting their bottoms in March 2020.

“This market behavior was repeated in 2020 when the COVID-19 pandemic began to take center stage… Investors who stayed invested and even added to their investments in these markets made the correct and profitable decisions,” it said.

Aside from investing for a longer term, Manulife IM Philippines said players should also consider applying the cost averaging strategy, where they invest regularly to manage their risks, especially for those who were not able to catch the bottom of the market.

“Catching the bottom is not crucial in generating good returns if investors adopt regular investing or cost averaging. It is a proven investment strategy that can mitigate investors’ behavioral biases, such as being too cautious when prices are low and being too greedy when prices are high, and also enable them to ride out market volatility in a more proactive way,” it said.

Market volatility will likely ease amid an expected slowdown in inflation and improving economic data, Paul Lu, the head of Manulife IM Philippines’ wealth solutions division, said in a Zoom interview last week.

He said they expect a strong rebound in the first phase of countries’ economic recovery as they try to reopen more sectors. However, sustaining this will depend largely on the pace of vaccination rollouts.

Inflation, meanwhile, will gradually become less of a concern for investors as it is expected to slow down for the rest of the year.

“Towards the second half of the year, we think that the market environment will be better for investors. But since it’s a volatile market, we want to encourage investors to consider investing during these volatile times. We encourage them to stay calm and think long term,” Mr. Lu said. — Beatrice M. Laforga

DITO to offer products in M Lhuillier branches

DITO Telecommunity Corp. has partnered with M Lhuillier to make its products and services available to the nonbank financial institution’s 3,000 branches nationwide, a company official said on Tuesday.

“With M Lhuillier’s help, we can make DITO products and services accessible to more Filipinos nationwide,” DITO Sales Director Angel Mercado said in a statement.

DITO’s products and services will also be included in the ML Wallet App, the official mobile application of M Lhuillier.

M Lhuillier President and Chief Executive Officer Michael Lhuillier said: “We’re always forging strategic partnerships to uplift the lives of Filipinos.”

“DITO’s cutting-edge telecommunications products will be made available to millions of M Lhuillier customers in our 3,000 branches nationwide and in the ML Wallet App,” he added.

DITO said it now has one million subscribers nationwide, just a few weeks after its launch in the National Capital Region.

DITO aims to have 30% share of the market. — Arjay L. Balinbin