Pacific Growth spies opportunities in the Philippines

The reflationary environment in the Philippines is creating a raft of investment opportunities according to Mark Williams, manager of F&C Pacific Growth Fund. Williams said he had taken an overweight position in the Asian archipelago to take advantage of low interest rates and the economic pick up as evidenced by recent loan growth.

"Peripheral markets in Asia, such as the Philippines, are also the furthest behind in the economic cycle which we believe still has some way yet to go. It was only in December last year that you began to see a real uptick in loan growth of some 10 per cent.

"Another factor supporting the economy is the repatriation of money from Filippinos living overseas. As they move into higher skilled, better paid jobs, they are able to increase the amount of money they send home. In December alone $1.3bn was repatriated, exceeding foreign direct investment into the country."

Williams who already holds holding company Ayala Corporation, recently bought property firm Megaworld.

"Megaworld is currently trading at a discount to its net asset value which is unusual for many major property firms in the region. Megaworld also stands to benefit from the fastest growing property demand in the country, particularly from overseas investors looking to use office space to outsource their business processing centres, and condos for middle-income earners" he added.