Prudential Assurance Malaysia Berhad (Prudential) has launched three, diverse investment-linked funds for its investment-linked protection plans to appeal to both moderate and aggressive investors. An investment-linked plan combines the protection element of insurance with the benefit of investment.
It allows policyholders to invest in a wide variety of investment-linked funds based on their risk appetite while insuring their health and/or life.
PRULink Equity Plus Fund is designed for investors with an aggressive risk profile and wish to invest in both local and global equities. Alternatively, they may opt to invest purely in global equities through the PRULink Global Strategic Fund (with Hedging).
The hedging strategy is applied to global equity investments to manage the currency risk for these three new funds. PRULink Managed Plus Fund on the other hand, offers a balanced risk profile by investing in high quality Malaysian and Foreign bonds besides local and global equities.
As global market dynamics continue to evolve rapidly, particularly as a result of the current Covid-19 pandemic, a geographically diversified portfolio will help sustain investments in a VUCA (Volatile, Uncertain, Complex, Ambiguous) environment.
Prudential’s newly introduced funds will enable its customers to better position themselves against market uncertainty by leveraging global investment opportunities.
In 2019, investors in Malaysia held the majority, or around 76 percent, of their investments in Malaysia-based assets even though such a portfolio may be subject to country-specific risks.
In the same year, the return on the MSCI AC World Equity Index was 26.6; in contrast, the FBM KLCI Index lost 6.02 percent. Global investment diversification allows investors to tap investment opportunities in various markets and economic cycles to enhance potential returns over the long run.
“Prudential was the first insurer in Malaysia to introduce investment-linked plans in 1997. We have evolved from providing pure protection to helping our customers get the most out of life by protecting their wealth and growing their assets. Continuing this spirit of innovation, we have introduced these new investment-linked funds to create more value for our customers. These funds managed by professional fund managers will allocate your investment over wider markets to enhance potential returns and diversify investment risks. By tapping these investment opportunities, our customers can position their portfolios for long-term growth,” said Esther Ong, Chief Investment Officer of PAMB.
She added, “As a corporate citizen in Malaysia for more than 96 years, we believe in responsible investing; that means, adopting sustainable investing strategies for local equity investments where ESG insights are taken into consideration in the investment decision making process.”
Sustainable investing recognises companies that adopt sustainable business practices through minimising their impact on the environment, treating employees, customers, and workers in their supply chains fairly and with respect, and acting responsibly within their communities and toward their shareholders. These factors are commonly grouped as ESG – environmental, social and governance – factors.
An initial offering period (“IOP”) campaign is offered for these new investment-linked funds from Oct 17 – Nov 30, where the fund price is fixed at RM0.50 per unit during the IOP. Customers who sign up for a new investment-linked plan can choose to invest in any of the above funds while existing customers have the option to switch from their existing funds into these new one.
Any creation and cancellation of units will be based on the fixed price of RM0.50 during the IOP. These new funds will commence trading on Dec 1, i.e. investment activities and valuation of funds will commence the next business day.