RCBC says clients prefer short-term investments
RIZAL COMMERCIAL Banking Corp. (RCBC) has seen stronger demand for short-term investment instruments as the market remains cautious amid continued uncertainty due to the coronavirus pandemic.
The bank’s unit investment trust fund clients have been opting togo for products with less volatility, including money market and short-term funds, RCBC Trust and Investments Group Head Robert B. Ramos said in a statement.
The volume of the lender’s peso and dollar-denominated money market products jumped 51.6% to P9.4 billion as of October from its P6.2-billion level as of December 2019.
“It is very intuitive; investors don’t want to take added risks,” Mr. Ramos said.
The bank’s peso money market fund’s volume, meanwhile, more than doubled (155%) to P5.1 billion as of October from just P2billion in December 2019. These investments, mostly in short-term securities such as government and corporate bonds, had an annual yield of 4.275% as of October.
Meanwhile, the volume of the bank’s dollar-denominated money market fund surged 118% to P703.9 million as of October fromP321.5 million in December 2019.
Full Article: https://www.bworldonline.com/rcbc-says-clients-prefer-short-term-investments/