Pru Life UK’s asset management and trust corporation, Pru Life UK Investments, today announced the launch of its two latest funds - PRUInvest PHP Intermediate Term Bond Fund and PRUInvest PHP Balanced Allocation Fund. This is in line with the company’s goal to provide quality investment options for Filipinos to help build their savings and financial portfolios.
“The pandemic has taught us that diversifying our financial resources is key to overcoming financial setbacks. We are pleased to see that a growing number of Filipinos are taking an active step in securing their future, whether it’s through health insurance[1] or pure investments[2]. The increasing demand for more investment options is what encourages us to provide more funds for existing and potential customers, in line with our ‘We DO Wealth’ commitment,” says Pru Life UK Investments CEO Lee Longa.
The two new funds cater to varying investment objectives and risk appetite of investors.
Moderate investors looking to achieve capital preservation and income generation can opt for the PRUInvest PHP Intermediate Term Bond Fund. With the fund's allocation to government bonds and high quality corporate fixed income securities, it can potentially safeguard one’s portfolio during market downturns and at the same time provide moderate and consistent growth.
Meanwhile, aggressive investors looking to achieve capital appreciation may invest in the PRUInvest PHP Balanced Allocation Fund. It allows investors to maximize the benefits of the fixed income and equity assets classes through its 50-50 portfolio mix. It is strategically and moderately invested in both asset classes by Pru Life UK Investments’ fund managers based on current market opportunities, providing growth and stability.
The new funds offer a range of benefits for investors. They are pure investment products supervised by some of the country’s top fund managers. They are diversified and invested in a wide array of securities, so risks are reduced, and returns are more attractive. The funds also offer easy access to cash as they can be redeemed after 30 business days[3].
Current market outlook for investments in the Philippines
The Gross Domestic Product (GDP) of the Philippines for Q2 2021 is expected to rise due to a combination of looser restrictions and base effect, according to Pru Life UK Investments AVP and Head of Equities Charles Wong. He also foresees that heightened government spending in 2021 as well as the State’s vaccination program will provide a sentiment boost to equities.
“The vaccination push-through and the government’s restrictions lifting measures will enable people to get back to work. This may help restore the businesses in the supply sector and hopefully taper inflation in this year and 2022,” shared Wong.
Building on Wong’s optimism, Pru Life UK Investments AVP and Head of Fixed Income Ricky Maddatu believes that the reopening of the economy may take place faster than expected and further improve the outlook. Maddatu also recognizes the challenges and opportunities in this financial environment, especially for fixed income investments.
“While the environment would most likely be challenging in the short to medium term for fixed income, we see the correction as an opportunity to reposition our portfolios to take advantage of higher interest rates and enter trading positions,” advised Maddatu. “Any risks that we are looking at the medium term can be an opportunity in the long term.”
Pru Life UK Investments VP and Head of Multi-Asset and Investment Solutions Princess Balingit also regarded risk management as part of the benefits of the new funds. She reiterated that the funds are handled by trusted fund managers who not only manage the risks but also help the clients diversify and strategize their asset allocation.
“Investing can provoke strong emotions. In the face of market turmoil, some investors may find themselves making impulsive decisions, becoming unable to strategize their portfolios. The fund managers of Pru Life UK Investments are here to do the investing for our investors. We employ investment principles that we think are important to long-term investment success,” said Balingit.
For more information about Pru Life UK Investments and its product and service offerings, visit prulifeukinvestments.com.ph/.
References
[1] https://www.prulifeuk.com.ph/en/explore-pulse/health-financial-wellness/study-on-the-impact-of-the-covid-19-pandemic-on-health-insurance-riders/
[2] https://news.abs-cbn.com/business/01/14/21/more-pinoys-seen-investing-in-stocks-amid-pandemic-3-ipos-eyed-this-year#:~:text=MANILA%20%2D%20More%20Filipinos%20are%20investing,Stock%20Exchange%20said%20on%20Thursday.&text=%22Net%20foreign%20selling%20for%202020,the%20volumes%20in%20our%20markets.
