Diversification key to withstand economic shocks
Diversification is critical to shielding investors from unpredictable economic shocks, especially amid the unfolding Middle East war, Manulife Philippines said.
In a press briefing on Monday, Manulife president and CEO Rahul Hora said spreading investments across multiple funds would prevent customers from being stuck in a “single geographical concentration or asset concentration.”
“We are in an economic environment where surprises are always around the corner. And that is why, for any customer or even for an organization or financial institution, to predict which asset class will be generating a good return is becoming increasingly difficult,” Hora said.
As it is, global markets have been on edge amid the escalating Middle East conflict, with oil prices under pressure that could drive inflation higher. This means that insurance may take a hit as consumers shift their spending priorities.
“It’s the same wallet which we are all reaching out to. So if there is an increase in prices, there is a possibility that it will impact [insurance]. But that’s where our effort to make people understand how they prioritize their financial spend comes in,” Hora said.
Asked if the conflict has already weighed on Manulife’s performance, Hora said they are still upbeat on their outlook for the year.
“With the recent crisis, it’s really difficult to assess the impact. It’s also unfolding as we are planning. But before this recent crisis broke out, we were actually trending quite well. The first couple of months were good. And the reason for that is that the local domestic economic situation continues to be resilient,” he said.
In any case, Hora noted that long-term savings and health propositions would be Manulife’s main drivers of growth in 2026.
