Manila - Manulife Philippines recently reported that its variable life Peso and U.S. Dollar Bond funds generated very competitive 12-month returns as of end of May 2009.*
As of May 29, 2009, the company’s Peso Bond Fund and U.S. Dollar Bond Fund, which are the most common funds selected for the Affluence variable life insurance product line, yielded 12-month returns of 13.08% and 3.49%, respectively. These highly competitive yields are the result of astute financial and risk management efforts by Manulife Philippines’ award-winning1 investment team.
“We are pleased to report that as of May 29, 2009, the 12-month return of our Peso bond fund reached 13.08%. Our U.S. Dollar bond fund also did very well at 3.49% despite the very challenging market environment over the last twelve months,” said Carl Gustini, Manulife Philippines President and Chief Executive Officer. “This again validates the point that our Affluence product line gives our clients an attractive investment option especially if they are looking for a way to diversify their current portfolio over the medium-to-long term period.”
Aira Gaspar, Manulife Philippines Vice President and Chief Investment Officer, attributed the funds’ competitive performance to the investment team’s in-depth market knowledge and strong conviction in its investment decisions. The investment team is part of a global network of interconnected financial professionals under MFC Global Investment Management, the asset management arm of Manulife Financial.
“Our investment team is willing to take contrarian positions that are expected to generate long-term value for our policyholders. We actively look for windows of investment opportunities, particularly during periods of elevated risk aversion. This strategy has allowed our Bond Funds to benefit from trades that were dealt at attractive valuations amid heightened market volatility,” Gaspar said. “We continue to hold a positive view on the market over the medium term. In the near term, we expect the emerging prospects of fiscal slippage past the government target to mitigate the downward pressure of lower inflation outlook and stimulative monetary stance on bond yields.”
The Peso Bond Fundseeks to achieve stable and long-term growth by investing in Philippine Peso-denominated government securities, high-quality corporate debt securities and/or in pooled fund/s that invest in these securities and other liquid fixed income instruments, while the U.S. Dollar Bond Fund seeks to achieve stable and long-term growth by investing in U.S. Dollar-denominated sovereign and corporate debt securities and/or in pooled fund/s that invest in these securities and other liquid fixed income instruments.
“The yields on our variable unit-linked Bond Funds are extremely competitive – be it against those of other life insurance companies and even more so against those of other financial institutions,” said Gustini. “Furthermore, our variable life product line offers a definite value-added proposition compared to other financial products since they also give life insurance protection on top of investment yields.”
The Manufacturers Life Insurance Company opened its doors for business in the Philippines in 1907. Since then, Manulife’s Philippine Branch and later The Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines) has grown to become one of the leading life insurance companies in the country. Manulife Philippines is a wholly-owned domestic subsidiary of Manulife Financial Corporation, the world's fourth largest and North America's largest life insurance company by market capitalization (as of April 30, 2009).
Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$405 billion (US$322 billion) as at March 31, 2009.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com. For information about MFC Global Investment Management, the asset management division of Manulife Financial, please visit www.mfcglobal.com.
*As of May 29, 2009.
1Manulife Philippines’ fixed income fund managers were named Most Astute Investors in Local Currency Bonds for 2008 by The Asset Benchmark Research.
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The Investment Funds ("Funds") mentioned in this document are specific to variable life insurance contracts and are not considered mutual funds.
This document was produced by and the opinions expressed are those of The Manufacturers Life Insurance Co. (Phils.), Inc. ("Manulife Philippines") as of the date of writing and are subject to change. The information and/or analysis contained in this material have been compiled or arrived at from sources believed to be reliable but Manulife Philippines does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof. The information in this document may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations, and is only as current as of the date indicated. There is no assurance that such events will occur, and may be significantly different than that shown here. The information in this document including statements concerning financial market trends, are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. This material was prepared solely for informational purposes and does not constitute an offer or an invitation by or on behalf of Manulife Philippines to any person to buy or sell any security. This material should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any investment products or to adopt any investment strategy. Nothing in this material constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you.
The return on the investment in the Funds mentioned in this document depend on many factors that include interest and foreign exchange rate levels, both of which may fluctuate. There are also other factors that may cause a change in the value of the securities such as changes in the credit standing of the issuers, which cannot be guaranteed. Investment in the Funds is subject to risk and possible loss of principal. All investment risks, gains and losses, if any, shall be for the account of the variable life policyholder.
Past performance of the Funds is not necessarily indicative of future performance. Yields on investment in the Funds are not guaranteed.