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Money Matters | U Shaped Recovery for the Philippines as per Sun Life


Sun Life Philippines is expecting the Philippine economy to have a U-shaped type of recovery and  a return to trend line growth in the next two years. 

This is according to Sun Life Chief Investments Officer Mike Enriquez who recently presented his  market outlook for the year 2021.  

“Based on latest GDP forecasts, we are anticipating a 4% to 5% growth for 2021. The full year  2020 GDP is projected at -.8%, which implies an estimated -5.7% in the fourth quarter of 2020,”  he said. “The year 2021 has potential to be a strong recovery year, but only if a fiscal stimulus is  passed early and it impacts households.”  

As for BSP policy rates, Enriquez sees one more cut of 25 basis points for the coming year to  further provide liquidity in the system. 

Volatility to continue  

While major economies have started to re-open, financial markets rebounding from their recent  lows and sentiment changing from fear to fear-of-missing-out, Enriquez sees volatility persisting  in the coming year.  

“Although the Philippine Stock Exchange index (PSEi) rallied and trimmed its losses after vaccine  news, the index remains at overbought levels and a correction is possible in the near-term,” he  explained. “We expect the PSEi to reach 8000 next year with an EPS growth of 45%, driven by the expected recovery of the consumer discretionary, real estate, and industrial players in the  stock market.”  

Given these developments, Enriquez advises investors to stay committed to their financial goals.  “The economy is not where we want it to be just yet, but a recovery is in the horizon as it always  is after a period of recession,” he said. “By riding the wave of volatility, investors can reap the  rewards later on.” 

Choosing the best fund  

An important step to take is knowing one’s risk profile and tolerance, as this will determine where  he should invest his money in. Sun Life Asset Management Company, Inc. (SLAMCI) offers a wide  range of funds that could match various risk profiles.

For instance, those who can tolerate market fluctuations in exchange of potential high returns  may opt to invest in the Sun Life Prosperity Equity Fund. Meanwhile, those who are keen to have  a steady ride throughout his investing journey can opt to invest in the Sun Life Prosperity Money  Market Fund or the Sun Life Prosperity Bond Fund. 

“No matter what direction an investor takes, what is important is that he commits to his financial  goals and invests regularly and consistently,” Enriquez said. “Time in the market will pay off in the  long run, so it is always best to stay the course.”  

Those who wish invest in the Sun Life Prosperity Funds may visit or talk to  a Sun Life financial advisor today.  

DISCLAIMER: Sun Life of Canada (Philippines), Inc. (SLOCPI) and Sun Life Asset Management Company, Inc. (SLAMCI) make  no representation as to the accuracy or completeness of the information contained herein. The information contained in  this presentation is for information purposes only. It is not intended to provide professional, investment or any other type  of advice or recommendation in relation to purchases or sales of securities whether or not they are related to SLOCPI and  SLAMCI; it does not constitute any guarantee of performance; and neither does it take into account the particular  investment objectives, financial situation or needs of individual recipients. Any opinions or estimates herein reflect our  judgment as at the date of this presentation and are subject to change at any time without notice. 


Sun Life Asset Management Company, Inc. (SLAMCI) is a member of the Sun Life Financial group of companies, a leading  international financial services organization providing a diverse range of protection and wealth products and services to  individuals and corporate clients. Sun Life Financial and its partners have operations in key markets worldwide, including  Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China,  Australia, Singapore, Vietnam, Malaysia and Bermuda. SLAMCI is the fund manager and distributor of the Sun Life Prosperity  Funds with Php119 B in Assets Under Management as of November 30, 2020. For more information, please visit