Sun Life to investors: Stay the course

MANILA, Philippines - Even with the local stock market experiencing net foreign selling, foreign funds shifting their focus on developed markets, and despite the news of a weak market, Sun Life of Canada (Philippines) Inc. advises investors to stay the course and continue investing at this time.

According to Sun Life chief investments officer Michael Enriquez, the Philippine economy continues to be strong, with the GDP projected to grew between 6.5 percent and 7.5 percent this year based on the 2014 GDP forecast guidance from the National Economic and Development Authority.

The country is even expected to outperform its regional peers. “As such, we advise our investors to stay the course and take advantage of equity market sell-offs as an opportunity to increase investment exposure – especially for those who have no exposure in our equity markets yet,” Enriquez said.

“We expect the second half of the year to be better for the market as we see better guidance on company earnings and GDP growth.”

The second half of 2014, he added, is looking especially promising, and there are plenty of reasons why. “Rehabilitation efforts in areas affected by Typhoon Yolanda will begin to reflect improvement on economic activity; more government infrastructure projects will start construction activities; a new casino is expected to bring more jobs and tourists when it opens in the third quarter; and  long awaited investments of companies will be completed and will contribute to earning expansion,” Enriquez said.

Enriquez added that the Philippines is expected to remain resilient in the medium to long term, due to the continuous infrastructure boom and the healthy balance sheet that the government is managing.

“On top of those, we also have a growing young middle class that can sustain domestic consumption,” he explained. “Plus, the expansion of BPOs nationwide and the resurgence of the manufacturing sector can provide a steady and broader job supply.”

The Sun Life executive recommends pooled funds which are actually managed funds such a mutual funds and UITFs for those who are keen to continue investing, saying it’s the most efficient way to participate in the equity markets since it offers professional fund management as well as diversification.

Meanwhile, those who can take the additional equity risk are recommended to accumulate in tranches to even out the volatility in the market, rather than investing heavily at one time.

Sun Life offers products that investors may consider to give them an opportunity to earn from the equities market, such as the equity and balanced funds under the Sun Life Prosperity Funds offered by Sun Life Asset Management Company Inc. (SLAMCI). The balanced fund invests in a mix of high-quality and equity securities, and works well for investors who are moderately aggressive. As of December 2013, the balanced fund posted an average five-year return of 15.98 percent.

The equity fund, on the other hand, invests mainly in high-quality equity securities that can be attractive to those with a higher-risk appetite. It yielded an average five-year return of 23.55 percent as of year end 2013.

Sun Life also offers insurance products combined with investment funds, such as the Sun MaxiLink One with allocation in Opportunity Fund.

For inquiries, contact Sun Life’s Customer Center at 8498888 or through email address: www.sunlife.com.ph.