Monday, December 9, 2019
Sun Life Money Market Funds
Sun Life recently held an open forum where they shared data about how 2019 has been for them. Amongst the many things they mentioned, the one thing that truly caught my attention was about Money Market Funds.
Money Market Fund is designed to ensure capital protection and provide adequate liquidity while maximizing yields on short-term placements. Affordable access to special savings accounts with low risk. Money market funds are usually regarded as temporary cash parking facilities and are very liquid by nature.
Since I'm not a risk-taker by nature, this one piqued my interest. After all, the Sun Life Prosperity Money Market Fund presents the least risk amongst all funds, however, with the lowest possible returns. In retrospect, this Fund provides higher annual returns than your bank savings account and doesn’t impose any sales load on you.
I already got my insurance from Sun Life so I feel comfortable dealing with them. Since I'm always on the lookout on how I can further grow my money, this seems to be a nice fit.
The Sun Life Prosperity Money Market Fund is for you if:
1. You want to have a very low risk in your investment but potentially earn better than regular current, savings, or time deposits.
2. Don’t want to look too far into the horizon? Money Market Funds are beneficial as early as one year from the date of investment.
3. You're considering time deposits or opening a new savings account but are wondering if there are better options.
This is definitely something that I would love to add to my savings portfolio. It may be small for now but I know that as time goes by, it can and will get bigger. It's easy to start one too.
Through the My Sun Life Client Portal and Sun Life PH Mobile App, you can invest and manage your account anytime, anywhere. You just need to fill out the registration form and take a selfie. And to make it affordable, you can invest in money market for as low as P100.
ONE HUNDRED PESOS + A SELFIE!
Sun Life Asset Management Company, Inc. (SLAMCI) sees a brighter 2020 for the Philippine economy. According to Sun Life Chief Investments Officer Michael Enriquez, the economy is set to significantly improve and the challenges that will come our way are tolerable and may be balanced out by the positive developments.
The factors that are expected to boost the country's economy are lower prices and accelerated government spending. In October 2019, inflation fell to a low of 0.80% but we expect prices to slowly rise as we foresee an inflation rate of 2.40% in 2020. This rate is significantly lower compared to 5.21% in 2018.
In terms of Gross Domestic Product, a higher GDP is to be expected. Enriquez shared that Sun Life looks forward to a 5.80% GDP for 2019 and a stronger 7% in 2020. This is due to a combination of base-effects, the recovery of consumer spending, and a stronger government spending. Sun Life expects the government to go all out on capital outlays considering that the present administration has only two years left in its mandate.
For the currency, a peso-dollar exchange rate of PhP50.70 to PhP52.50 is possible. The 2019 USD-PhP forecast is at PhP51.00 and a slightly higher PhP52.50 for 2020.
Sun Life expects the Philippine Stock Exchange Index to end at 8,600 on a best case scenario. While the 2019 remains to be volatile for the stock market, the PSEi target for 2020 is at 9,460 with a price-earnings multiple of 18.2 times.
Taking into consideration the external factors beyond our control, the United States is set to experience recession especially towards the later months of 2020 due to the upcoming presidential election. The US-China Trade War has also created an impact in global growth. The Federal Reserve is also on a passive quantitative easing mode. The US Dollar 10-year bond may re-test the recent low of 1.5%-1.7%.
With these scenarios, SLAMCI highly encourages investors to stay the course. "It is only with a long term vision and a solid commitment to their investing journey that they can benefit from a better and faster Philippine economy in 2020.
To know more about Money Market Funds, watch this.
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