2007 Annual Report - Sun Life Financial

Capital Risk Management
The Companies manage its capital to ensure that the Companies will be able to continue as a going
concern while maximizing the return to stakeholders through the optimization of the mix of highquality
debt and equity securities from domestic issuers. The Companies are guided by its Investment
Policies and Legal Limitations. All the proceeds from the sale of shares, including the original
subscription payments at the time of incorporation constituting the paid in capital, is held by the
pertinent custodian banks.
The Companies are governed by the following fundamental investment policies:
1. It does not issue senior securities.
2. It does not intend to incur any debt or borrowing. In the event that borrowing is necessary,
it can do so only if at the time of its incurrence or immediately thereafter there is an asset
coverage of at least 300% for all its borrowings.
3. It does not participate in any underwriting or selling group in connection with the public
distribution of securities, except for its own capital stock.
4. It generally maintains a diversified portfolio. Industry concentrations may vary at any time
depending on the investment manager’s view on the prospects.
5. It does not invest directly in real estate properties and developments.
6. It does not purchase or sell commodity futures contracts.
7. It does not engage in lending operations to other interested persons such as the members of
the Board of Directors, officers of the Companies and any affiliates, or affiliated corporations
of the Companies.
8. The asset mix in each type of security is determined from time to time, as warranted by
economic and investment conditions.
9. It does not change its investment objectives without the prior approval of a majority of its
shareholders.
7. ACCRUED INtERESt RECEIVABLE
Bond Fund Balanced Fund Phil. Equity Fund
2007 2006 2007 2006 2007 2006
Philippine Peso Philippine Peso Philippine Peso Philippine Peso Philippine Peso Philippine Peso
Treasury Notes P26,656,743 P61,622,086 P23,992,214 P5,129,419 P421,590 P421,590
Corporate Loans 24,415,388 23,004,525 616,078 835,939 - -
Dollar Denominated Bonds - - - - - -
Special Savings Accounts 92,108 855,308 2,825,708 1,047,204 224,147 198,293
P51,164,239 P85,481,919 P27,434,000 P7,012,562 P645,737 P619,883
Dollar Advantage Fund Money Market Fund
2007 2006 2007 2006
US Dollar US Dollar Philippine Peso Philippine Peso
Treasury Notes $688,493 $522,019 P1,137,500 P2,929,808
Corporate Loans - - - -
Dollar Denominated Bonds - - - -
Special Savings Accounts 3,614 1,841 374,734 119,431
$692,107 $523,860 P1,512,234 P3,049,239
2007 Annual Report 41