Monday, June 30, 2008

Historical NAVPS of Sun Life Prosperity Funds as of June 2008

The Sun Life Prosperity Funds is a family of mutual funds managed by Sun Life Asset Management Corporation (SLAMC), which consists of equity, balanced, bond and money market mutual funds. I have graphed here the historical net asset value per share (NAVPS) of the funds from their inception up to June 2008.

The graph shows significant decline in equity and balanced funds as their stock investment holdings are suffering from some bearish attacks. Ditto with the bond markets. However, the impact on bonds is not that huge. The level of risk is still manageable, since the Philippines is not much affected by the subprime mess.

Meanwhile, it seems that to me that the money market fund has a very good prospect in this time of crisis. As shown in the graph, the fund is poised to pick up. Although, the past several months we have seen failed auctions in Treasury bills (T-bills) brought about by favorable economic conditions, especially in the last couple of years. But with this year's runaway inflation and declining stock market, we could anticipate some activities in the money market sector. Moreover, short-term bonds and credit instruments, such as retail treasury bonds (RTB) and 91-day T-bills, could also be very good bets!

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