Following the success of the PruLink Asian Local Bond Fund launched in 2012, the country’s lone British insurer and investment-linked life insurance pioneer, Pru Life UK once again rides high on the strength of Asian economies through its latest offering, the PruLink Asia Pacific Equity Fund (PAPEF).
Structured as a feeder fund, PAPEF is a US dollar-denominated fund that invests in the Eastspring Investments-Asia Pacific Equity Fund (EI-APEF) which invests primarily in equity and equity-related securities of companies which are incorporated, listed in or have their area of primary activity in the Asia Pacific Region (excluding Japan).
“The PAPEF allows policyholders to diversify their unit-linked investments both on and offshore to deeper equity markets around Asia. This would mitigate single country risk and provide more liquidity for our policyholders,”said Pru Life UK President and CEO Antonio G. De Rosas.
The strength of the PAPEF lies mainly on its strong investment team. Eastspring Investments (Singapore) Limited is Pru Life UK’s fund management company, and has been named the largest Retail Fund Manager in Asia (ex-Japan, Australia and New Zealand) [“region”] in the annual Asia Asset Management Fund Manager Survey 2012, with US$42.5 billion of retail assets sourced in the region as of June 30, 2012. Also part of the global Prudential Group, Eastspring Investments has been managing Pru Life UK’s underlying funds for its unit-linked or investment-linked product portfolio since the company pioneered the PruLink product line in 2002.
The PAPEF may also invest in depository receipts including the American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), debt securities convertible into common shares, preference shares and warrants.
“Asia is a growth story so now is the appropriate time to invest in the region. With the contraction of credit markets in Europe and fiscal deficits driving US earnings and markets, it only makes sense to leverage on Asia,”said Mr. De Rosas.
“Furthermore, global bond yields are expected to remain low, hence, against this backdrop, Asian equities could offer more reasonable returns on a risk adjusted basis,” he added.
PAPEF is initially available via the US dollar-denominated PruMillionaire and PruLink Investor Account (PIA) Plus products, Pru Life UK’s single-pay investment-linked policies. Unit-linked or investment-linked policies are two-in-one protection and investment products.
Unit-linked policyholders have the freedom to choose where to invest a portion of their premium payment from Pru Life UK’s fund portfolio - PruLink Equity Fund (invests in shares of stock in the local stock market); PruLink Growth Fund (predominantly invests in shares of stocks with a minimum investment in fixed income securities and money market instruments); PruLink ProActive Fund (highlights dynamic allocation by fund managers through investment in fixed income securities, money market instruments and shares of stocks); PruLink Managed Fund (invests predominantly in fixed income with minimum investment in shares of stocks); PruLink Peso Bond Fund (invests in local bonds and money market instruments); PruLink Dollar Bond Fund (invests in US dollar fixed income securities issued by the Philippine government, Filipino corporates and international entities); PruLink Money Market Fund (invests in bank deposits and money market instruments); PruLink Asian Local Bond Fund, (feeder fund that invests offshore in the Eastspring Investments - Asian Local Bond Fund); and now, the PruLink Asia Pacific Equity Fund.
Press release from Pru Life UK