Sun Flexi Link Balanced Fund Yields 50.42%
The Balanced Fund of Sun Life Financial Philippines’ (SLFP) VUL (variable universal life) product, Sun FlexiLink, generated a net yield of 50.42% year-on-year as of February 28, 2007, surpassing the blended return of the PSEi (Philippine Stock Exchange Index) and the 91-day T-bill rate.
Despite the recent drop in the PSEi by 7.9% due to the meltdown in China stocks, FlexiLink’s Balanced Fund managed to keep its drop in NAVPS significantly less than the market's.
“We had not been aggressively buying stocks recently as we believed that valuations were overextended. However, we still continue to be on the lookout to buy select stocks,” says Mike Manuel, SLFP Chief Investment Officer.
“The FlexiLink’s Balanced Fund employs an active asset allocation strategy so that the fund managers aim for the optimum amount of equities and fixed income securities in the portfolio at any given time. In fact, our balanced fund had a significant portion of the portfolio in cash when the stock market declined. We have always packaged our funds as a return and risk management portfolio,” added Manuel.
“As an investment option under Sun FlexiLink, the Balanced Fund continues to attract investors because it allows them to enjoy the best of both worlds, maximizing their potential to earn while cushioning the impact of market fluctuations by investing in a combination of equities and fixed income securities,” says SLFP President and CEO Henry Herrera.
Herrera adds, “We are glad that Filipinos are now recognizing the global expertise of SLFP in managing investment funds even for VUL products such as Sun FlexiLink. Sun FlexiLink allows clients to enjoy both life insurance protection and investment earnings potential.
Other FlexiLink funds yielded equally attractive Y-O-Y returns for the same period, as follows: 52.54% for the FlexiLink Equity Fund, 13.17% for the FlexiLink Bond Fund and 9.56% for the FlexiLink Dollar Bond Fund.