Sun Life Forecasts New Challenges for Second Half 2019

It has been a heck of year for the country in the first half which led to monumental changes in the country. The most recent one is the midterm elections where 12 senators and party lists were voted by the people.  It is not only changed the political landscape but also the economy as well.

With these changes, Sun Life Asset Management Company, Inc. (SLAMCI) is passionate by studying the network that also affects their business, their clients, and also the whole country itself. As part of the biggest insurance companies in the country

We have previously discussed it on the last Market Outlook months ago which also shows the predictions in terms of equity goals and investment trends that 2019 will have. Now that we are halfway through the year, it is time to look back and make another comparison with the goals set and actual figures that will help make adjustments with the forecast for the whole year.


The presscon started with SLAMCI President Valerie Pama who also introduced the  Sun Life Prosperity Card which now comes in a lower denomination of only P1,000. This stored gift card is a great present for those who wants to promote investing to friends and family at a very affordable amount. It also comes in P5000 denomination and can be activated with at any Sun Life Client Service Center nationwide.

The Sun Life Prosperity Card is a lasting and precious gift option ideal for special occasions such as birthdays, baptisms, graduations, and weddings," said SLAMCI President Valerie Pama. "It enables the recipient to have his own starter mutual fund with a value that potentially appreciates over time.

Further current market drivers was discussed by Michael Enriquez -Chief Investments Officer, Sun Life Financial Philippines. He discussed the major points of the mid year report citing the positives and negatives as seen below:

POSITIVES:

• The Fed had a surprise dovish shift. They see virtually see no hikes for 2019
• S&P upgrades our rating to BBB+ with a stable outlook. A surprise for markets
• Sentiment on domestic trades have now shifted: from a hawkish view in 4Q GDP to the current rate cut expectation.
• BSP is now clearly on the easing mode.
• They expect 2019 earnings to be at 11% vs consensus at 15.5%
• Despite the weak 1Q GDP, they didn't expect it for the balance of the year. Also consumption bounce - over and above election year impact.

NEGATIVES

• US Treasury yeild curve tenors (10y vs 3m) has inverted but was short-lived and is now back to a positive spread. Historically this tenor spread is a good indicator of recession 12m later. But any recession will likely be shallow and short.
• Peso looks to be on the weak side as the new BSP governor "expressed" a range of 53-55 for the Peso where the BSP shall intervene.
• Worsening US-China trade relation.

He shared that ther has been a lot of factors with the forecast for the rest of the year, but one big surprise was the credit upgrade given to the country by S&P. The new rating of BBB+ is already great news as it boosts investor confidence and also generally for the country as well. But there is still the challenge for the global market that will affect us due to the economic wars by China and the US.

With these two superpowers flexing their policies to show strength in trade wars, it will definitely have a ripple effect on countries linked to either of both of them. And since the Philippines is one of them, it will have some effect in the coming weeks unless these issues are not resolved. Though with high tensions between these countries, the Philippine market remains consistent, yet it is still seen as a conservative growth.

However this is still the perfect time for investments which has grown dramatically in the previous years which also led to the growth of Sun Life in the Philippines. Now that investing is becoming more accessible to the masses, the aim now it to grow more jobs and other incomes that will help them create an investment account. Also with affordable options like the Sun Life Prosperity Card, people are now learning to become investors.

Since the elections is now over, the second half now depends on the road to Christmas which has the biggest jump due to consumer spending. The challenge now is to continue with the work needed beyond elections. The country remains on the right track for growth, the future remains bright despite some bumps along the way. We should now move on and move forward with our financial management and investments while economical ratings are high and is the perfect moment for investment options.

To know more about the Sun Life Prosperity Card and the Sun Life Prosperity Funds, consult a Sun Life financial advisor, visit sunlifefunds.com, or call 849-9888

About Sun Life Asset Management Company, Inc. (SLAMCI)

Sun Life Asset Management Company, Inc.(SLAMCI) is the mutual fund arm of Sun Life of Canada (Philippines), Inc. SLAMCI is one of the leading asset management companies in the country with almost Php55 billion in Assets Under Management (AUM) as of December 31, 2018.it currently manages 15 mutual funds collectively called the "Sun Life Prosperity Funds." For more information, visit www.sunlifefunds.com.