For the second half of 2025 in the Philippines, the investment strategy will continue to favor liquid and quality stock names, as the economy shows improving yet still fragile characteristics. Given the current macroeconomic backdrop of sustained domestic demand and easing inflation, the Bangko Sentral ng Pilipinas is expected to continue its accommodative stance. This should further support economic activity.

From a stock-picking standpoint, companies with exposure to resilient consumer segments are particularly favored—with an increased allocation to consumer retail, and real estate being the top pick due to positive market fundamentals and attractive valuations. Banks have maintained their overweight position from the last rebalancing. Utilities and telecommunications remain underweight. The broad category of construction and infrastructure-related firms is not a specific focus. The overall approach emphasizes earnings visibility and strong cash flow generation to navigate any lingering inflation or interest-rate volatility, ensuring resilience in a dynamic market.