Pr Life UK’s new PruLink Cash Flow Fund offers up to 4% target payout amidst a volatile market

13 NOVEMBER 2014/MANILA - Opening opportunities to invest funds in alternative tools in the face of uncertain market conditions, Philippine investment-linked life insurance pioneer Pru Life UK launched today the first US dollar-denominated payout-based fund that aims to provide regular quarterly payouts of up to 4% annually* to policyholders – the PruLink Cash Flow Fund (“PCFF” or “Fund”).

PCFF seeks to provide investors with regular payouts by investing in a diversified portfolio of assets managed by Singapore-based investment arm Eastspring Investments (Singapore) Limited. Structured as a feeder fund, PCFF invests mainly in the Sub-Funds of the Luxembourg-domiciled Eastspring Investments funds: US High Yield Bond Fund and the Asian Bond Fund. The Fund may also invest in the Sub-Funds of Eastspring Investments: World Value Equity Fund, North American Value Fund and Asian Equity Income Fund. This allows better diversification of risk across markets in Asia and the United States.

Pru Life UK President and CEO Antonio Manuel De Rosas said, “We are pleased to introduce the PCFF, an investment option that the Philippine market has been looking forward to for quite some time. With its dynamic allocation strategy, the PCFF provides access to diverse credit and equities markets that provide a potentially less risky portfolio compared to a 100% equity fund in the current uncertain macro climate. Also, because of its diversified investment allocation, the PCFF potentially offers a better risk-reward profile compared to other funds, which focus on a single market or asset class.”

De Rosas added, “By accepting more risk, investors could possibly enhance their returns as the PCFF potentially provides higher payouts than bank time deposit instruments, with current dollar investments available locally giving less than one percent annual yield compared to the PCFF’s maximum payout rate of 4% yearly.”

The PCFF is initially available to those availing of US dollar-denominated PruMillionaire policies, Pru Life UK’s elite single-pay investment-linked product. It is also initially available for fund switching for existing PruMillionaire Dollar policies. Unit-linked or investment-linked policies are two-in-one protection and investment products which Pru Life UK pioneered in the Philippines in 2002.

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 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 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 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); PruLink Asia Pacific Equity Fund (feeder fund that invests offshore in the Eastspring Investments – Asia Pacific Equity Fund); PruLink Global Emerging Markets Dynamic Fund (feeder fund that invests offshore in the Eastspring Investments – Global Emerging Markets Dynamic Fund); and now, the PCFF.

Pru Life UK’s PruLink fund portfolio is managed by sister company Eastspring Investments (Singapore) Limited, part of Eastspring Investments, the asset management arm of British financial services company Prudential plc in Asia. Eastspring Singapore has been managing the underlying funds of Pru Life UK’s unit-linked or investment-linked life insurance since these products were pioneered in the Philippines in 2002.

In 2014, Eastspring Investments was ranked as the largest retail asset manager in Asia Asset Management’s annual survey of retail fund managers in Asia** for the third straight year. Eastspring was likewise recognized as the Best Asset Management Company of the Year in Southeast Asia by The Asset Triple A Investor and Fund Management Awards 2013.

*Payout shall be at the discretion of Eastspring Investments (Singapore) Limited (the Fund Manager) and Pru Life UK. This may be made out of any of the following: (a) income, (b) net capital gains, (c) capital of the Fund, or a combination of (a) and/or (b) and/or (c). The payout is based on the percentage of the fund value held by the Policyholder as declared by the Fund Manager and Pru Life UK, subject to a maximum payout rate of four percent (4.00%) per year. Subject to market conditions, the PCFF also does not guarantee that any distribution will be made, nor does it guarantee the amount of payouts as set in the sales illustrations, presentations, and/or related reports and documents.

**This annual survey ranks participating fund managers in Asia (ex-Japan, Australia and New Zealand) based on assets sourced in the region, as of 30 June 2014.


About Pru Life UK

Established in 1996, Pru Life UK is a subsidiary of British financial services company Prudential plc. Pru Life UK is the pioneer and current market leader of unit-linked or investment-linked life insurance products, and is one of the first life insurance companies approved to market US dollar-denominated unit-linked policies in the country. Pru Life UK is a life insurance company and is not engaged in the business of selling pre-need plans.

Prudential plc is a United Kingdom-registered company. Its regional headquarters, Prudential Corporation Asia, is based in Hong Kong.

Pru Life UK and Prudential plc are not affiliated with Prudential Financial, Inc. (a US-registered company), Philippine Prudential Life Insurance Company, Prudentialife Plans, Inc. or Prudential Guarantee and Assurance, Inc. (all Philippine-registered companies).

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