Sun Life creates new fund tracking PSEi movement

GLOBAL insurance giant Sun Life of Canada has launched a new fund that tracks the Philippines’ main stock barometer, giving investors the opportunity to invest in local equities at attractive valuations given bright prospects for the market.

The new offering of Sun Life of Canada (Philippines Inc.), called Index Fund, is a variable unit-linked (VUL) fund that invests in a basket of stocks tracking the Philippine Stock Exchange index, targeting aggressive clients with high-risk tolerance and long-term financial protection goals.

VUL is a unit-linked protection plan wherein benefits are linked to the returns of one’s chosen investment fund, which in turn is dependent on prevailing market conditions.

“With Index Fund, clients would be able to invest in the country’s largest corporations all in just one fund, thus allowing them to ride the wave of our country’s bright prospects. It is handled by a team of professional fund managers who will ensure that they can maximize returns,” Sun Life chief marketing officer Mylene Lopa said.

Sun Life chief investments officer Michael Enriquez added: “Investing now allows one to buy the Philippine equity market represented by the index at a very low price, relative to the economy’s potential for growth moving forward.”

Since peaking at over the 8,100 levels in April 2015, the main index has retreated by about 18 percent as of Friday’s close. But given the strong earnings growth of Philippine corporations against a rosy macroeconomic backdrop, this pullback was seen as an opportunity to buy stocks at cheaper prices.

“The country’s growth is expected to accelerate even more this year because it is an election year, and increased government spending will further boost it,” Enriquez said.

In a press statement, Sun Life said the Philippines’ economic resilience had allowed the country to consistently be a bright investment spot in Asia, despite the challenges that the global environment has been facing. “The growth potential of the country’s stock market remains strong, thus making it a perfect time to invest and grow one’s money,” the company said.

Available as a fund option to Sun Life policies including Sun MaxiLink Bright, Sun MaxiLink Prime, Sun FlexiLink, Sun FlexiLink 1 and Sun FlexiLink Assist, Index Fund also offers a basic life insurance policy.

“With its insurance and investment features, Index Fund is definitely a great tool to help clients secure their future,” Lopa said. “Moreover, by showing confidence in our very own stock market, they are also able to support the Philippines’ economic progress—paving the way for a brighter Philippines.”