Sun Life hosts ‘A Brighter Path Towards Portfolio Building and Business Succession,’ highlights importance of building a strong portfolio
High net worth individuals (HNWIs) are increasingly focused on building and preserving their financial legacies, as highlighted in a series of exclusive events hosted by Sun Life for its elite clients. The gatherings, titled "A Brighter Path Towards Portfolio Building & Business Succession," took place on July 24, 2024, at Richmonde Hotel in Iloilo; July 25, 2024 at Seda Ayala Center in Cebu City, and July 26, 2024 at the Seda Davao. The events featured insights from prominent figures in the financial industry.
Mikko Vergara, the Head of Equities and Global Funds at Sun Life Investment Management and Trust Corporation
Mikko Vergara, Head of Equities and Global Funds at Sun Life Investment Management and Trust Corporation (SLIMTC), shared his perspectives on the local market. He emphasized the current investment landscape, stating, “We’re not expecting a recessionary condition within the US, which presents an opportunity to add into growth assets such as equities and high-quality bonds.” His insights aim to equip investors with strategies to adapt their portfolios amid changing market conditions.
Ritchie Teo, Chief Investments Officer at SLIMTC
Ritchie Teo, Chief Investments Officer at SLIMTC, shared invaluable insights during the discussion on investment opportunities. He provided actionable tips on how investors can strategically adapt their portfolios to the evolving financial landscape. By analyzing current market trends and identifying emerging sectors, Teo emphasized the importance of flexibility and proactive management in navigating the complexities of today’s economy. He encouraged attendees to stay informed about global economic shifts and to continuously reassess their investment strategies to seize new opportunities for growth.
Terena Kuo, Vice President of BlackRock Singapore
Terena Kuo, Vice President of BlackRock Singapore, underscored the importance of global diversification in enhancing investment returns while managing risks. “Diversification is crucial; by broadening your scope and adding global exposure, you can enhance your returns while reducing risk,” she explained. Kuo's comments reflect the growing trend among HNWIs to look beyond domestic investments for opportunities.
JJ Book, Head of New Market Development at Sun Life of Canada (Philippines)
JJ Book, Head of New Market Development at Sun Life of Canada (Philippines), Inc., addressed the significance of financial planning for both wealth accumulation and preservation. He highlighted findings in a Sun Life commissioned study done by SatisFIND in January 2023, which revealed that HNWIs prioritize the financial stability of their families and advocacy efforts as central to their legacies. “Many HNWIs aspire not only to accumulate wealth but also to ensure its preservation for future generations,” Book noted.
The event emphasized the importance of building a robust financial portfolio to navigate unforeseen challenges, including medical emergencies and market downturns. Book shared a personal story about how a family health crisis disrupted long-term financial plans, stressing the need for proactive preparation in financial planning.
HNWIs often structure their investment strategies around four key elements: purpose, profit, period, and preservation. Book elaborated on the need for matching investment goals with time horizons and risk tolerance, stating, “There’s no such thing as a no-risk high-return instrument.” This comprehensive approach is designed to create more resilient financial plans.
Business owners face unique challenges in ensuring continuity despite the potential loss of key personnel. Insurance solutions like key man insurance and buy-sell agreements are essential tools for safeguarding
businesses from disruptions. Life insurance offers advantages for wealth transfer across generations, allowing families to avoid substantial estate taxes. “Life insurance is one of the most effective financial instruments that allow efficient wealth transfer across generations without the need to pay estate tax,” Book explained.
During the discussion, Book emphasized that wealth creation should not overshadow the importance of wealth preservation. He introduced the "borrowed life approach," where grandparents hold life insurance policies that benefit future generations. This strategy allows the insured, usually assigned to the adult child, to become the next policy owner and enjoy the living benefits after the grandparent has passed. The grandchild is assigned as the insurance beneficiary who becomes the third person to benefit from the policy in the event of death of the insured.
The importance of buy-sell agreements was also highlighted, as these arrangements ensure ownership remains within original partners upon a partner's death, preventing potential disruptions to the business.
The event concluded with a call to action for HNWIs to explore innovative insurance solutions and wealth transfer strategies. Book urged attendees to seek professional guidance in navigating the complexities of financial planning, stating, “Choose a reliable partner.”
As wealth management continues to evolve, HNWIs are encouraged to adopt comprehensive strategies that balance wealth accumulation with sustainable legacy planning, ensuring their financial legacies endure for generations to come.
Find a branch in Visayas near you by visiting sunlife.co/WhereToFindUs or connect with a Sun Life advisor via sunlife.co/TalkToAnAdvisor. (SPONSORED CONTENT)