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Looking to invest offshore somewhere a bit different? Here are six reasons why these islands could prove a prime place for your money

by , 18 August 2014

In a world full of geopolitical tensions, it can be a hard task finding somewhere offshore to invest that looks promising.

There's the situation between Russia and Ukraine, fighting between Israel and Hamas, and the Ebola virus hitting parts of Africa hard.

So if you want to invest offshore in a market that's looking good for future gains, what are your options?

What about the Philippines?

The market in the Philippines has had a fantastic year

Have a look at the chart below of the New York listed iShares MSCI Philippines exchange traded fund (ETF)…

Chart of iShares MSCI Philippines ETF

As you can see from looking at the chart above, this ETF is breaking higher. And it has the potential to see gains of 40% or more, Sean Brodrick in Investment U explains.

There are a number of reasons that the Philippines could continue to be a top investment performer and ideal if you’re looking to invest offshore.

Six reasons to invest in the Philippines

Reason #1: Foreign investment is flooding in
Last year, foreign direct investment (FDI) rose 20%. That took it to $3.9 billion. For just the first four months of 2014, FDI rose another 9%.

Reason #2: Changes to banking laws
The government passed a new law recently that means foreigners can own up to 100% of their banks.

This has led to interest from countries including Japan and Malaysia to look at investment opportunities there. And this move should see even more FDI flowing into the Philippines.

Reason #3: The economy is growing – fast
In 2013, the economy grew 7.2%. In the first three months of this year, it grew 5.7%.

That’s much faster than the lack lustre growth in South Africa at the moment. The South African economy contracted in the first quarter of the year. Next week, we’ll find out how the economy performed over the second quarter.

The Philippines ranks as the third fastest growing country in Asia after China and Malaysia.

Yes, the Philippines has had its fair share of natural disasters to contend with, but the government is confident it will still achieve growth of 7.5% for this year.

Reason #4: Consumer confidence is on the rise
A sturdy 80% of consumers in the country see their personal finances over the next year as good or excellent. The country’s benefitting from a strong economy and a growing middle class.

Reason #5: Its IT industry is booming
The country is attracting a large number of foreign call centres as it has a lot of well-educated English speakers.

Reason #6: It’s resource-rich
The Philippines has a host of resources, some of which are still under development. This includes energy, gold, copper, silver, timber and nickel.

If you’re looking for an offshore investment opportunity with a difference, the Philippines could be for you. Look to one of the Philippines-based ETFs.

So there you have it, six reasons why the Philippines could prove a prime place for your money.

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Looking to invest offshore somewhere a bit different? Here are six reasons why these islands could prove a prime place for your money
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