MANILA, Philippines - Sun Life Grepa Financial Inc. (SLGFI) is launching its newest mutual fund called SLG Growth PLUS.
SLGFI is a bancassurance joint venture company between the Rizal Commercial and Banking Corp. (RCBC) and Sunlife Financial (Philippines) Inc.
SLG Growth PLUS Fund is a peso-denominated equity fund, characterized by a feature that can also limit downside risk relative to typical equity funds.
The new fund invests in a diverse portfolio of high dividend-paying equity instruments issued by top-tier and financially-stable companies listed in the Philippine Stock Exchange (PSE). These companies were selected based on operational performance, valuation and, market sentiment.
The dividend earnings are automatically reinvested to contribute to the price appreciation of the fund, as well as to soften the impact of a drop in stock prices during a market downturn.
Likewise, the new mutual fund also adopts an active portfolio management strategy, which allows for swift reallocation equity assets as needed, within its investment mandate.
SLGFI president Richard Lim said the Philippines remains one of the fastest-growing markets in Asia despite recent weakness in the equity market performance. The country’s economic fundamentals remain intact and fund managers believe that the long-term growth story of the Philippines is still solid.
“These market lows actually present a golden opportunity for clients to enter the market at cheaper levels,” Lim added.
The fund is suited for investors with longer investment horizons and greater tolerance for risk. Investors are more likely to accept short-term volatility for the opportunity to optimize earning potentials over the medium-to-long term period.
SLG Growth PLUS Fund is a fund option available to both existing and prospective clients of Sun Grepa Power Builder 1, Sun Grepa Power Builder 5, and Sun Grepa Power Builder 10 variable life insurance products. Along with their investment-oriented design features, these products also provide insurance protection until age 88.
Earlier, SLGFI launched Sun Grepa Power Builder Dollar 1, a US dollar-denominated equivalent of its single-pay investment-linked life insurance product.
It is designed to maximize the earning potential of dollar funds by investing them in high-yielding global funds that best matches both investment and financial protection objectives.
The Power Builder Dollar 1 is suited for dollar fund investors seeking wealth accumulation instruments with a medium to long-term investment outlook, and financial protection through life insurance
Sun Life believes that the dollar will strengthen or remain strong as a result of the continued recovery of the US economy. This, in turn, presents a tremendous investment opportunity for dollar fund investors looking for an investment alternative.
“The product’s life insurance protection feature provides a life protection coverage that is equivalent to at least 125-percent of the premium less any withdrawals made up to age 88. As the value of their dollar investments grow, policy owners are also able to secure the financial protection needs of their loved ones.” Lim added.
Unlike some of the other investment-linked life insurance products in the market, the application for Sun Grepa Power Builder Dollar 1 is very easy because it includes a built-in guaranteed insurability offer and thus no medical examinations are required except for certain limitations set by the company.
“We want to make sure that the product would be beneficial to a wider age group. As it is, older people often feel intimidated or discouraged from applying because of the additional requirements, even though the need becomes greater as one matures.