Village Connect
In an era of increasing economic interconnectivity, diversifying investments beyond local markets has become a vital strategy for long-term financial growth. According to Mikko Vergara, Head of Equities and Global Funds at Sun Life Investment Management and Trust Corporation, global investing provides access to a broader range of economic opportunities and industries, allowing investors to maximize returns and manage risks more effectively.
“By investing globally, you can tap into various growth catalysts across different economies,” Vergara explains. “Whether it’s cutting-edge technology in Asia, stable bond markets in Europe, or emerging opportunities in Latin America, expanding your portfolio beyond domestic borders can enhance diversification and return potential.
One of the key benefits of global investing is risk management. Markets around the world do not always move in the same direction at the same time, meaning that international investments can act as a buffer against local market downturns. “Introducing uncorrelated assets into your portfolio can help reduce overall volatility, providing stability even in uncertain economic conditions,” Vergara adds.
However, global investing requires strategic planning and awareness of key factors such as corporate earnings, political stability, and monetary policies in different regions. Vergara advises investors to assess these elements carefully before making investment decisions. “Understanding the macroeconomic environment and market trends is crucial in selecting the right global investment opportunities,” he says.
Before venturing into international markets, investors must also evaluate their financial goals and risk tolerance. “It’s important to determine whether you have the appetite for offshore investments and to ensure you only invest in products you fully understand.” Vergara emphasizes.
To help Filipinos navigate global markets with confidence, Sun Life Investment Management provides expert guidance and access to international funds. “Our team, alongside financial advisors, is here to help investors determine the right level of global exposure to achieve their long-term financial goals,” Vergara concludes.
