‘If a man empties his purse into his head no man can take it from him. An investment in knowledge pays the best interest.’ – Benjamin Franklin

This is a longer version of the usual quote “An investment in knowledge…” The author expresses a straight forward saying, which means that there will be a great outcome if you start focusing on nurturing your intellectual being. You’ll gain a better understanding over some matters, and this is not something that anyone can take away from you.

This kind of investment is something that we tapped without noticing. But add a little consciousness to it and you’ll see its essentiality.

The essentiality today

In a recent study, 60 % of the Philippine population would be people of ages 30 and below, a portion of which are the millennials. From my past blog about “Personal Finance for Millennials,” 75% of the latter spends more on experience rather than material goods. They have this hardworking, motivated, “everything in an instant” attitude, that gives them a fast pace of knowing things.

Experiences correlate with knowledge as these two are the foundation of wisdom. It is not enough if you just know it without doing it, as the same goes to if you just do it and don’t learn from it.

But, millennial or not, all of us need to keep up with the changes and learn as much as we can.

Where to find them

The technological or digital age is our period where information is within grasp. The least we can do is to make the most out of it. With the aid of a powerful tool called the internet, we know that searching for what we need now can be done easily.

Whether it is searching for a nearby library, a current event, a technological advancement, socialize to learn, etc. it’s just one click away.

It’s a great way to start on consciously investing on knowledge for its compact-ability and multiple platform-compatibility. It gives you an experience where you’ll gain knowledge at ease. This article too, is a contributor to your intellect as it gives you an insight on the essentiality of the subject matter.

But, that is just one of the sources.

One of the most effective way of consciously finding an investment opportunity in both intellect and business setting is by attending business seminars and conferences, more specifically, in the field of finance. The eminent and selfless transfer of knowledge from one body to a numerous number of persons is a great opportunity to be a part of. The people who may came from different parts of the country, yet unifies them in a single interest that gives them a sense of belongingness. Those are some things that I have observed from numerous seminars and conferences that I have been on.

The bottom-line

Our brain works in many ways, and what we need is to give input for it to make it work with ease. Knowledge is an essential investment in your intellectual well-being. It takes you to a point of view with deeper understanding of a subject.

Also, it takes out the fear of the unknown. It brightens the grey areas of your thoughts and gives you a confidence boost on what you want to endeavor, especially in business. It can be really tricky for a person who doesn’t know much how business works rather than the principle of spending money to earn money.

Being financially knowledgeable is a great way for you to know how to intelligently cope up with the ups and downs of daily business operation; Trends that you can see fit to venture in to, in order to make your money grow while spending less; And how to make your money work for you.

You can start investing in knowledge now by attending the fourth install of my Investment conference dubbed as #iCon 2016 this coming May 28, 2016 at the SM Aura Samsung Hall in Taguig City.

Take part of this iCON-ic event as with a bigger innovation, we have gathered a stronger group of local finance authorities in the country to talk about basic finance and how the recent innovation affected the economy through Marvin Germo, one of the most passionate personal finance experts in the Philippines; Diwa Guinigundo, an economist and Deputy Governor of the Bangko Sentral ng Pilipinas; Paulo Tibig, one of the most sought after professional speakers in the entrepreneurship community; Rex Mendoza, Founder and Managing Director of Rampver Financials and the most dynamic financial speakers in the Philippines; Jose Feron “Dodong” Cacanando, a businessman who owns Moriah Farms, Inc. and Karmel HA-Moriyah, Inc. and a truly inspiring business speaker; Valerie Pama, the President of Sun Life Asset Management, one of the country’s biggest mutual funds, and yours truly.

For transmission confirmation or questions contact Deniece Pineda at (+632) 750-6510 or 0926-691-0126 or at icon2016secretariat@gmail.com.

REGISTER NOW AT bit.ly/GO_ICON2016

For the 3rd installment of my 2016 Outlook series, I am honored to present the views of the CEO of one of the largest insurance companies in the country today, AXA Philippines.

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The 2016 Outlook of Rien Hermans

This 2016, I see several positive factors across the key markets. They inevitably come with various degrees of risk as these markets undergo various political and economic transitions.  This year will be by no means smooth sailing and the volatility of the market will be high, but quite clearly, there are several growth opportunities over the medium and long-term that seem to offer stable growth.

China’s economic slowdown— and its subsequent impact in markets across the globe— has created concerns, with the recent stock market lock-down seeming to reinforce a growing aversion for China exposure. But while its days of hyper-GDP growth are over, the Chinese economy is still expected to grow reasonably well 2016 and beyond, subject to the Chinese government’s ability to implement the proper reforms. Volatility is to be expected as it transitions from a manufacturing-reliant economy, to a more sustainable consumption driven one.

This transition will inevitably impact most emerging markets, particularly those in Asia. But as a whole, Asia is still expected to drive global growth over the next 3 years. The Philippines and its consumption driven economy in particular, remains well-positioned for a defensive economic theme amidst the global volatility. Understandably, the eventual results of the presidential election may potentially impact the degree of acceleration, but will not alter the upwards trajectory.  The country’s economic fundamentals remain on solid footing, and shall remain through the political transition, pointing to sustainable economic growth.

The US has been recovering and recent figures show modest economic growth, which is expected to continue in the coming years and allows a slight increase in interest rates. The dollar can further strengthen against both the Euro and the Peso. The stock market in the US, which has been recovering over the past two years, is expected to show a slight positive growth, with the expectations that sectors like the digital oriented stocks will outperform.

I expect the European markets to outperform the global markets in 2016, as Europe has clearly started its recovery and economic growth is expected in the major economies within the Euro zone. This will further be accelerated by the stronger competitive position as a result of the lower Euro.

This 2016, the best strategy seems to be to diversify and have a long-term mind-set.  Balance investments among markets with a strong consumption theme, like the Philippines, while considering developed markets like Europe and include some exposure in US-denominated funds to benefit not only from the growth of the overseas markets, but also from the stronger currency.

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Convinced of the value that financial products deliver to customers Rien has spent over 2 decades  in the financial service industry in the fields of product development, distribution, marketing, strategy and general management.  

In 1990 he started with ING Bank in the Netherlands, where he was responsible for developing and implementing Life insurance as a new product group offered by the bank. His analytical skills and strategic vision were recognized and for 4 years he was vice president Strategy & Planning advising the Board of ING on strategic issues.

In 1999 he moved to Asia and after a short stint in Hong Kong he was assigned as the CEO of ING Life as well as CEO of Aetna Life & Healthcare in the Philippines, Executive Director and General Manager of ING Malaysia and the last position he held in ING was Board Member of ING Financial Services Poland.

In 2009 Rien ‘crossed the line’ and joined AXA with the assignment to transform AXA Philippines into a strong player on the domestic market with a sustainable position in the top 5. Focused to be the best in the eyes of the customers the company has strengthened its position in the growing life insurance and investment market in the Philippines.   

On May 18, the Philippines Securities and Exchange Commission issued an alert concerning the firm Hyper Program International and its affiliates, warning investors to stay clear. But what are the reasons for the worries surrounding Hyper Program International (HPI)?

It helps to know some background information about the company. The firm began in Quezon City in 2014 as a direct marketing operation selling collagen-based cosmetic products. This includes face masks that claim to revitalize the skin, collagen soap, a drug called Gluta Colla-C and Collagen Coffee.

Its founding statement promised investors that HPI would be “creating business to build people and change life and to provide infinite growth and possibilities to its members.” HPI claims to use a common direct marketing strategy to sell its products. Using social media networks on sites such as Facebook, HPI recruits investors to join its Rewards System and then claims to pay them a bonus due to their customer loyalty.

According to the SEC, this had entailed promising returns of between 35 and 40 percent within 40-45 days. As the SEC also reports, investors in HPI are paid their bonus if they then recruit other investors. Investors are also rewarded, in theory, if they recruit customers to purchase the collagen products marketed by HPI.

However, the Commission warns investors that HPI has not been issued with a securities license, making any investment potentially illegal. The SEC warning notes that the firm may be in breach of Sections 8(8.1) and 12 of the Securities Regulation Code. The penalty for participating in an unlicensed securities operation can be between P50,000 and P5,000,000 – and a 7 year prison term can also result from prosecution.

Unregulated securities scams can result in investors losing all of their capital, which is why the SEC attempt to issue licenses to officially approved firms. Because HPI has been refused a license, anyone thinking about making an investment in the firm would be advised to think twice. It seems likely that the company has an unsound business model that seeks to exploit online investors.

Direct marketing is a common source of employment in the Philippines, with around 4 million people involved in the sector across the archipelago. However, there is sometimes a small difference between a genuine marketing network where all sellers are rewarded for their work, and a pyramid scheme which only enriches a few criminals at the head of the organization.

The SEC clearly suspects that HPI has been acting as a pyramid scheme, where investors are rewarded solely for recruiting others (who pay for the privilege), instead of for their sales activity. That’s why the Philippines SEC issued its strongly worded warning to anyone thinking about making an investment in HPI which, on the surface claims to be a forward-thinking, dynamic sales operation. Anyone still considering investing or offering investment opportunities with this companies has been warned and may face prosecution if they take part.

You can view the warning of the SEC at their website or click HERE