Sun Life Philippines recently held an online Market Outlook where they shared fact-based inputs on the PH economy and how people can take this chance to grow their money through mutual funds.
Sun Life Asset Management’s digital channels were also highlighted as a brighter way to invest. Even before the pandemic, Sun Life clients already had ways to invest digitally. To make things even easier, SLAMCI launched the Sun RISE Portal. A brighter, more convenient way to invest in Sun Life Prosperity funds through salary deduction for only Php 300/month.
Sun Life also continues its advocacy on financial literacy by hosting educational webinars on mutual fund investing such as the Bright Talks series.
Here are some of the fact-based market updates from Sun Life Philippines, as presented by their Chief Investments Officer, Michael Enriquez.
Globally, major economies are starting to reopen but not yet a full capacity. COVID-19 impact to world economy may not yet been fully priced-in by the market. However, there are positive developments in several experimental drugs for COVID-19.
Aside from flattening the curve of coronavirus victims, there’s also a concern on flattening the curve of the victims of the economic slowdown.
Locally, the economy is expected to contract and follow a U-shaped recovery. According to Sun Life, U-shaped recoveries tend to last 1-2 years from the bottom to reach the previous peak.
The Philippine Stock Exchange Index (PSEi) bounced as much as 28% from this year’s low of 4,623. Next resistance is seen closer to the psychological 6,000 then 6,268, while support rests closer to 5,300 then 4,623. The year-end target is 6,800 on a base case scenario given an earnings contraction of 10%.
Sun Life also highlighted the bright positives from near term drivers:
- Lifting of MECQ in Metro Manila and restarting of the economy
- Lower new positive COVID-19 cases
- Equities continue to be undervalued compared to bonds.
For the ordinary mutual fund investor like myself, these are all “bright” and optimistic updates that we can anchor our financial choices on. When things are uncertain, it’s good practice to rely only on fact-based updates from the experts.
While mutual fund values dipped because of coronavirus, they too will ride the curve to recovery as we see the end of this crisis. It is also a good opportunity to enter or add to existing mutual fund investments if your financial position allows you to do so. Take a closer look at some of my favorite screenshots from the presentation that I shared on this blog post.
Disclaimer: These updates are from SLAMCI, I am not a registered financial advisor. Please visit https://www.sunlife.com.ph/ for more information and to be matched with the best financial advisor for you.
