Money market funds are designed to provide current income at competitive yields with minimal risk to your principal investment. Compared to other existing mutual funds, money market funds are at the top of the heap when it comes to low risk.

Money market funds are comparatively low risk mainly because of the securities in their portfolio. These types of funds only invest in securities that are “short-term,” meaning those with a term of one year or less. As a general rule, short-term securities are less riskier than longer-tenor securities.

That said, you should know that the Sun Life Prosperity Money Market Fund is, at the time of launch, the only money market fund in the Philippines. Compared to other mutual funds at this time therefore, it is one of the most conservative mutual funds in the country, perfect for somebody who wants to “try out” investing in mutual funds.

In countries such as the United States and Canada where the mutual fund industry is well-established, individuals as well as institutions frequently invest in money market funds, which are multibillion dollar funds, even hitting the trillion mark. As of December 30, 2004, for example, total US money market fund assets stood at US$ 1.951 Trillion¹.

One of the reasons money market funds are an attractive alternative is that they are very liquid, meaning they can be withdrawn on any business day. It is because of this that money market funds become temporary parking places for cash and ideal facilities for short-term investing.

For example, you may want to park your cash in a money market fund while you wait for the time you are comfortable with investing in stocks, as the money market fund can provide a safe haven during volatile periods. The fund is especially useful for institutional investors who have large amounts of cash that they would like to see earn interest while still not being used. At the same time, individual investors like the freedom of knowing that they would be able to withdraw their money from the money market fund if needed.

The Prosperity Money Market Fund is the first absolutely no load fund in the Philippines. There are no fees to pay upon investing. This means that your Php 10,000 initial placement is invested wholly into the fund, thereby maximizing its earning potential. Subsequent investments can also be made for as low as Php 5,000.

In addition, the Prosperity Money Market Fund provides immediately access to your investments after seven (7) calendar days. This means you can withdraw your investments after seven (7) days without incurring any exit fees. Other mutual funds may not have any initial sales loads when you invest, but will require you to have at least a two year holding period otherwise your redemption shall be subjected to exit fee. But with the Prosperity Money Market Fund, you do not have to worry this.

Unlike bank products that provide tax breaks on your interest earnings only when you stay with them until your money “matures”, your mutual fund proceeds are not subject to the usual 20% withholding tax.²

This tax-free feature of Philippine mutual funds, combined with the liquidity, zero load, and no holding period attributes of the Prosperity Money Market Fund, make it a good alternative to time deposits. That dilemma of not being able to pull out your money because you’ll be “taxed” is no longer a problem with this Fund.

By far the most important attribute of the Prosperity Money Market Fund is that is managed by Sun Life Asset Management Company, Inc., a member of the Sun Life Financial group of companies. Our investment team adhere to strict investment policies. The Prosperity Money Market Fund may only be invested in fixed-income instruments issued by the Philippine government, prime corporate credits (investment grade issues), as well as other short term instruments such as deposit placements with credit ratings of AAA or AA. And these only after careful research consistent with prudent management of the Fund.

The Sun Life Prosperity Money Market Fund gives you affordable access to high caliber investment management that is usually reserved for corporations, institutions and the very wealthy. Successful investing takes knowledge and careful research. With international operations, subsidiaries and joint ventures serving millions of people in Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Indonesia, India, and China, Sun Life Financial is a global force in financial services.

¹  Source: Investment Company Institute, at    http://www.ici.org/stats/mf/mm_12_30_04.html#TopOfPage
²  Dividends declared by the Fund may be subject to tax.