Press releases

July 23, 2009

SLAMC's little push for long-term

 

There are two widely heeded tenets in the world of finance that doesn’t seem to sit well with many Filipinos.

First, that investing is a long-term engagement, and second, that investments tend to grow more surely when done on a regular basis – weekly, every payday, every quarter or even bi-annually.

So maybe we’re not too guilty about investing regularly as we are at investing over the long term. After all, many of us subscribe to salary deduction savings schemes, participate in cooperatives, or at the very least, maintain our own "paluwagan" circles.

But why has it been difficult for us to keep our hands off of our investments before they even turn a year old? Perhaps because we see investments as equals and alternatives to savings when they are not.

According to SLAMC (Sun Life Asset Management Company), savings or deposit accounts are primarily meant to provide liquidity in case of emergencies or for the proverbial ‘rainy day’. This is why such accounts don’t turn up huge profits – banks aren’t able to do much with the money knowing we may need it any time.

Ideally, a person should have a savings account sizeable enough to tide him over emergencies. With this covered, he can then begin building his wealth via investments. That is, when an emergency hits, the investor should turn to his savings and not to his investments.

"Investments are meant to be grown. And, growth is most surely achieved with the commitment to hold investments over a long period, with the intention to regularly add to that pot," explained Ben Thomas Pañares, SLAMC Chief Operating Officer.

Our commitment to invest our money over 3, 5, 10 or even 20 years, will give our investment managers more room to maneuver and grow our investments. In the end, this will mean for us potentially bigger earnings!

Our commitment to stay invested long term will temper our emotions in the face of market volatility. It is common for many of us to panic when the market starts to dip. We redeem most if not all of our investments, often trading them for much less than the price we bought them for.

"We had an investor who bought his mutual funds at Php1.50 per share. When share prices went down to P1.25, he came to us wanting to withdraw his money. We told him that if he doesn’t have any need for the money and he can’t put it in a better earning instrument, that he might as well leave it alone and wait for the market to recover. Now with share prices inching up to P2.00, that investor wouldn’t even entertain the prospect of selling," Pañares related.

It’s time for a longer time

To get majority of our population into the habit of investing regularly and over a long period of time, SLAMC and its parent company Sun Life Financial-Philippines recently launched a financial advocacy called, "It’s time!"

Bam Aquino

No less than Paolo Benigno "Bam" Aquino IV endorses the lessons for wealth accumulation, while Pia Arroyo-Magalona speaks for the continuing relevance of life insurance.

In billboards to be found in the metro, in Cebu and in Davao, Bam shares how making a habit of investing a little each time, every time can be one’s simple secret to securing the future.

"Still, we realize that many Filipinos might need a little more push, a little more encouragement before they choose to take a long-term perspective of their investments," Pañares admitted, "that’s why over a limited period of time, we’re throwing in compelling incentives."

SLAMC recently launched the Fun with Prosperity Funds promo, under which qualified investors who commit to stay invested over the next 3 years, automatically gets to bring home a prize of their choice.

Fun with Prosperity Funds will run until September 15, 2009. Prizes at stake includes LCD television sets, Apple Macbook Air, Sony Vaio, iRest Massage Chairs, refrigerators, MP3 players, and of course, the crowd drawing, all-season entertainment piece, the Magic Sing.

"SLAMC has bravely taken on the position of Investor Advocate. From now on, we will intensify our efforts to uphold the interest of every investor. For starters, we’re giving out wonderful and exciting prizes to reward them for investing long term," said Riza Mantaring, Deputy President of Sun Life Financial – Philippines.

Fun with Prosperity Funds Promo Mechanics

 

 

1.Promo Period: June 15, 2009 to September 15, 2009.

 

2.Qualification:

 

a. All Filipinos or established residents of the Philippines, including institutional accounts, who will: 

 

i. Invest for the first time in any of the six (6) participating Sun Life Prosperity Funds (“6 Prosperity Funds”), listed in 2 (b) below; 

 

ii. Make additional investments to their existing accounts in any of the 6 Prosperity Funds, subject to the restriction in 2 (d) and (e) below; or 

 

iii. Transfer existing investments in the Money Market Fund to any of the 6 Prosperity Funds.

 

b. The six (6) participating Prosperity Funds are:

 

i. GS Fund                                           iv.         Philippine Equity Fund

ii. Bond Fund                                        v.         Dollar Advantage Fund

iii. Balanced Fund                                 vi.         Dollar Abundance Fund

 

 

New investments in the following Prosperity Funds are NOT included in the promo:

 

i. Money Market Fund

 

ii. Funds subscribed under the SIMPLE program

 

c. Minimum investments to qualify: PhP1,000,000 (for the PhP-denominated Funds) or US$20,000 (for the US$-denominated Funds). Accumulation of investments to reach the minimum or higher levels is allowed only for same-day transactions, subject to 2 (e) below.  

 

Investments may be paid via deposits in designated SLAMC bank accounts, cash, money transfer or cheque.

 

d. Investors, their immediate family members (up to the second civil degree of consanguinity or   affinity) and related accounts are not allowed to redeem from any of their existing accounts in the 6 Prosperity Funds listed above so that such could be pooled together in one (1) or more new account/s or added to an existing account/s during the Promo Period.  Only new investments would qualify under the Promo. 

 

e. Investors having existing accounts with different co-investors or under different names are allowed to redeem prizes on the cumulative value of their joint and individual investments only once. Co-investors who meet the minimum investment requirement should designate one (1) recipient of the prize. 

 

f. All documents and requirements should be submitted and all investments should be cleared and processed by September 15, 2009.

 

3. Mechanics:

 

a. All new and subsequent investments in any of the 6 Prosperity Funds that meet the above qualifications shall be entitled to zero loads and gift items as shown in the table below:

 

FPF Table

 

Should the gift item above be unavailable due to lack of supply and without the fault of Sun Life, the qualified recipient may choose to wait until supplies are replenished or accept a substitute of equivalent price and quality.

 

b. Investors who have joined the Promo agree that they shall not make any redemption until after three (3) calendar years from date of investment ("Holding Period").  However, participating investors agree that any redemption made before the end of the Holding Period shall be subject to early redemption charges as shown below:

 

Early Redemption Period                                              Early Redemption Charges

 

Within 1st Year                                                                                    7.5%

Within 2nd Year                                                                                   5.0%

Within 3rd Year                                                                                    2.5%

 

c. Investors who do not wish to join the Promo will be subject to the regular Sales Load Options and exempt from any Holding Period. 

 

4. Claiming Rewards

 

a. In order for the gift item to be processed, qualified investors must indicate in the Fun with Prosperity Funds Enrollment Form (“Form”), his/her:

 

i. Complete name.  Institutional investors must designate their authorized recipient in Form;

ii. Chosen gift item; and 

iii. Exact delivery address. Changes in address will not be allowed after Form is submitted.

 

b. For areas within Greater Metro Manila, items will be delivered within 10 days from date of submission of the Enrollment Form. For areas outside of Greater Metro Manila, items will be delivered within 15 days from date of submission of the Enrollment Form.

 

c. Investors and representatives who will receive the gift item must present the following: 

 

i. For investors: Valid photo-bearing government or company issued ID;

ii. For representatives:

 

- Authorization letter from the investor 

- Valid photo-bearing government or company issued ID of the investor and representative

 

d. Any tax on the gift item shall be for the investor’s account.

 

e. Products covered by applicable warranty will contain their warranty cards. Please keep these for your protection.

 

 

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