Pru Life UK launches investment-linked insurance fund hedged in peso

PRU LIFE UK introduced a new investment-linked life insurance fund on Tuesday that promises a potential payout of up to 6% annually and is hedged in peso to minimize losses from foreign exchange volatility.

The new fund called PRULink Cash Flow Fund Plus offers a payout target of up to 6% annually or 1.5% quarterly and is managed by Eastspring Investments (Singapore), Ltd., which has been managing PRULink Funds since 2002, the insurer said in a statement on Tuesday.

It is available from Dec. 13-31 to customers “with moderate to aggressive risk appetite and medium-to-long-term financial goals,” it said.

New customers and existing policy owners of Pru Life UK can invest in the product by getting a new peso-denominated PRUMillionaire or PRULink Investor Account Plus.

“The Fund seeks to provide regular payouts by investing in a diversified portfolio consisting of US high-yield bonds, Asian bonds, global equities, and other dividend-yielding assets. It is also hedged in [peso] to minimize foreign exchange volatility,” a brochure on the product said.

About 25-65% of the fund will be invested in global bonds and up to 20% will be placed in global stocks.

“Our mission is to help Filipinos achieve financial security through our innovative and customer-centric products ranging from life to health protection and investments,” Pru Life UK President and CEO Eng Teng Wong was quoted as saying.

“[We] are launching the PRULink Cash Flow Fund Plus as their new fund option — most specially for those looking for capital growth and potential regular source of cash, amid these volatile times,” Pru Life UK Vice-President for Investment Marketing Mark Anthony Valino said. — A.M.C. Sy