Sun Life Philippines, a global leader in financial services and life insurance, held a four-day client forum from July 23 to 26, 2024, across Manila, Iloilo, Cebu, and Davao.
The forum aimed to expand Sun Life’s high-net-worth (HNW) market and promote larger case sizes in the country. It focused on attracting affluent clients by highlighting Sun Life’s role in efficient wealth transfer and business succession.
The forum was attended by clients, business owners, and prospective investors, providing them with valuable insights to create and build their financial portfolios for long-term success and to assist asset owners and their families in reducing worries and avoiding potential conflicts that often arise during inheritance proceedings.
According to JJ Book, Head of New Market Development at Sun Life of Canada (Philippines), Inc., and one of the keynote speakers, a study conducted in January 2023 with high-net-worth individuals (HNWIs) revealed that they view a lasting legacy as ensuring their families and advocacies will continue to thrive in the future.
“Building a robust financial portfolio and having a reliable partner to manage it are crucial for achieving financial goals. Unforeseen events can always disrupt financial plans,” Book added.
Book highlighted that combining different asset classes can help manage risk and volatility, making one's financial journey smoother and more rewarding. Additionally, there are insurance solutions available to help business owners ensure that their business continues to thrive, even in the event of the loss of a key person or co-owner.
He also highlighted the benefits of using life insurance products to protect key persons in a company or as a financial instrument to execute buy-and-sell agreements. It is expected to reduce business losses and avoid conflicts among co-owners in the event of an untimely passing of a key person.
Life insurance is an effective financial tool for efficient wealth transfer across generations, which also allows individuals to address their concerns on estate tax.
The forum also covered the latest market updates and investment strategies. It emphasized the benefits of global investments for better returns and stability, as well as the challenges of assessing high-priced stocks, which can be justified by strong earnings growth.
Terena Kuo, Vice President of BlackRock Singapore, noted that while most investors aim to buy low and sell high, emotions and news often lead to the opposite result. She explained that global investments can provide better returns and lower volatility due to companies’ global customer bases, larger earnings, and greater scale compared to local markets.
“We advocate for allocating more funds to global investments. It’s also important for clients to explore local opportunities while gaining access to global markets to enhance their investment potential,” Kuo added.
Ritchie Teo, Chief Investment Officer of Sun Life Investment Management and Trust Corporation (SLIMTC), emphasized that investing in stocks with high prices can be intimidating, as it may feel like it’s too late to invest. He noted that when choosing stocks, investors must weigh the decision between more expensive and cheaper options. Expensive stocks are often supported by strong earnings growth, which can lead to higher future prices, whereas cheaper stocks might be undervalued due to poor performance or limited growth potential.
“The key is to evaluate if the high-priced stocks' earnings growth justifies their cost. As long as earnings remain strong, high-priced stocks can still be a good investment,” Teo added.
Sun Life positions itself as a valuable partner of business owners. This is why many high-net-worth individuals include their products in their financial portfolios, as it helps secure the legacy they wish to leave for their families and businesses. AJA