The Next Chapter: Why Your Investment Benchmarks Must Go Global
Last Saturday, I felt a mix of nostalgia and forward-looking energy at the Discovery Primea. It was our annual IFE Investment Briefing—a special face-to-face treat for our clients and friends.
As I stood before everyone to give the welcome remarks, I found myself thinking back to my growing-up years. I shared with them that back then, I only compared myself with those who were around me physically— my siblings, classmates, neighbors, and other people I occasionally mingled with. “Online” (the way it is used now) wasn’t even a word! Life was simpler, easier, and at the same time, it was also limiting. My bases of comparison were those around me, my benchmarks were local, so my perspective was narrow.
It was the same thing for my investments. I was perfectly happy with the fixed income returns I got. Well, who would complain with double your money in five years? Do you remember those? Then I also benefited from the bull run in the Philippine stock market, when we got our first investment grade rating during PNoy’s time.
But times have changed and we can no longer afford to just be content with the local market. Capital flows globally. Innovation happens everywhere. Risks are interconnected. Opportunities are borderless.
If we only invest in the local market because that’s what’s familiar and comfortable, we miss the bigger picture and the bigger opportunities. And that is why the topic of the briefing was very relevant: The Next Chapter: Investing with a Global Perspective.
The first speaker was Enrique Fausto, the Chief Financial Architect and the main man of IFE Wealth, a spin-off from IFE Management and Advisers, Inc. while the second one was Michael “Mikko” Vergara, the head of Equities and Global Funds at Sun Life Investment Management and Trust Corporation (SLIMTC). Incidentally, Mikko was a neighbor during my growing up years that I recalled in my welcome remarks. But he’s significantly younger than me. His father was one of the pillars of Far East Bank & Trust Co., where Marvin and I first worked and met, then later on became the President of EquitablePCI Bank. He’s also our wedding godfather.
Is the AI Craze a Bubble?
It was interesting how Enrique Fausto tackled the question in everyone’s mind: Is this AI craze just another bubble about to burst?
Enrique’s take is that we are currently moving from the “Enabling Layer” to the “Application Layer.” Think of it this way: For a while, everyone was focused on the companies building the actual AI tools and hardware (the enablers). But the next chapter of value we should focus on is in how businesses—from healthcare and energy to finance—actually use those AI tools to become more productive.
He pointed out that, unlike the dotcom bubble of the 90s, today’s AI spending is mostly financed by company cash flows from earnings, not mountain-high debt. While prices are high, they aren’t at those scary “peak bubble” levels yet. His advice for us? Don’t be afraid to keep global stocks in your portfolio to capture this productivity, but it’s time to look beyond just the big US names. This year looks like a period where leadership broadens out to include Emerging Markets and Europe as their earnings start to accelerate.
The Shift to Borderless Opportunities
Next, we heard from Mikko Vergara. He brought some eye-opening data to the table. He explained that the current economic environment is still very supportive of interest rate cuts by the US Federal Reserve. When rate cuts happen because the economy is normalizing—rather than because of a scary recession—it usually opens the door for Emerging Markets to shine.
He showed us a “Return Quilt” (I love that name!) that proved his point: in 2025, European and Emerging Market equities actually outperformed the US market. It was a powerful reminder that in an interconnected world, we need to benefit from global research and “best practices” to make sure our portfolios are positioned wisely.
After the presentations, we had a Q&A session. Our guests had thoughtful questions—ranging from the specifics of AI risks to how to balance existing local investments with global ones. It was wonderful to see everyone engaged and eager to open their minds to these new horizons.
Opportunities Still Abound
As we wrapped up, Marvin Fausto, also a director here at IFE Wealth, left us with a beautiful closing message: Opportunities abound. Yes, the global stage can feel complex and a little intimidating, but that’s exactly why we’re here. His message was simple: Let IFE help you navigate these global waters so you can stay focused on what you do best—your own career, your passions, and your family.
At the end of the day, money is a tool to help us fulfill our core values. By widening our lens and expanding our benchmarks, we aren’t just looking for higher numbers; we’re making sure our hard-earned money is working as hard as we do.
Are you ready to start your own “Next Chapter”?
ANNOUCEMENT
- As we transition into a borderless financial world driven by AI and emerging markets, it is crucial to ensure your personal finances are built on a solid foundation. Take the FQ Test today to measure your financial intelligence and see if you’re truly prepared to start your “Next Chapter” in global investing.
- Empower your financial future by moving beyond local borders and mastering the global shift toward AI and emerging markets. Take control of your “Next Chapter” with High FQ by Design: Shape Your Environment for a Financially Healthy You, and start shaping an environment built for lasting international wealth.
This article is also published in Philstar.com
