PRUlink cff - PhP hedged share class product page

Fund highlights

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Fund features

What is the PRUlink cash flow fund – PhP hedged share class?

The PRUlink cash flow fund – PhP hedged share class (Peso CFF) was designed for investors with moderate risk appetites and with a desire to have a reliable stream of income.

The Fund seeks to provide investors with regular payouts* of up to 1% per quarter or 4% per annum by investing in a diversified portfolio of US dollar-denominated high-yield assets and hedging against foreign exchange fluctuations.

The Peso CFF primarily invests in the Eastspring Investments’ Asian Bond Fund and US High Yield Bond Fund.

At the discretion of Eastspring Investments (Singapore) Limited, Pru Life UK’s award-winning fund manager, the Peso CFF may, in addition, invest up to 20% of its assets in the following Luxembourg-domiciled Eastspring Investments funds: (i) World Value Equity Fund; (ii) North American Value Fund; (iii) Asian Equity Income Fund; and (iv) iShares Select Dividend Exchange Traded Fund (ETF).

What does ‘PhP hedged share class’ mean?

The Peso CFF is a hedged share class, meaning it issues shares that are priced in a currency different than the fund’s base currency. In our case, the existing USD dollar-denominated PRUlink cash flow fund is the base fund, while the share class will be issued in Philippine peso. Hence the term – PhP hedged share class.

The hedging mechanism is an investment strategy that aims to reduce risks caused by volatile price movement of an asset such as currencies. Because of the Peso CFF’s hedging mechanism, the foreign exchange risks of the policyowners’ invested peso are minimized.

Why invest in Peso CFF?

The Peso CFF builds on the successful track record of the PRUlink USD cash flow fund, its US dollar-denominated counterpart launched by Pru Life UK in 2014, and is primarily invested in the same assets as the PRUlink USD cash flow fund – therefore allowing Peso CFF policyowners to enjoy the same potential payouts but in Philippine peso.

Additionally, the foreign exchange risks of the policyowners’ invested peso are minimized because of the Peso CFF’s hedging mechanism. Moreover, the Peso CFF’s diversified investments in high-yield bonds and dividend-yielding equities make the fund less volatile, allowing policyowners to receive payout as an additional steady source of income. A payout-based fund is an attractive investment option in a volatile market environment.

Combined with comprehensive insurance coverage offered by our insuravest solutions to policyowners until the age of 99 – the Peso CFF provides customers with the opportunity to expand their wealth and meet their financial goals by maximizing the power of their peso.

Furthermore, the Peso CFF – together with the rest of Pru Life UK’s fund portfolio – is managed by the Asian asset management business of Prudential plc. Eastspring Investments was named Asia’s Fund House of the Year at the AsianInvestor Awards for the third time in four years (2018, 2017 and 2015) – recognizing its continued strong growth, unrivalled footprint in Asia, profitable results and consistent Investment performance.

How much are the payouts and how are they distributed?

Payouts will be based on a percentage of the fund value held by the policyowner as of the relevant Declaration Date, subject to a maximum payout rate of 4% per annum (or maximum of 1% per quarter). They will be payable to policyowners within 20 days from the Declaration Date as determined by Pru Life UK, provided that the policyowner is qualified to the payout.

A policyowner is qualified or entitled to the payout if he/she has invested in the Fund before the declaration date and as long as he/she remains invested in and has units credited and held in his/her account on the payout date. Pru Life UK reserves the right to change the payout date.

There is no guarantee that any distribution will be made or that the frequency and amount of distributions as illustrated in the sales materials will be met. The Fund Manager and Pru Life UK may vary the amount of the payouts made during the duration of the Policy and there may be periods without any payouts.

If payouts are made, such payouts are not in any way a forecast, indication or projection of the future or likely performance or distribution of the Fund. The making of any payout shall not be taken to imply that further payouts will be made.

How do I avail of the Peso CFF?

The Peso CFF is available in new and existing peso-denominated PRUmillionaire and PRUlink investor account plus, Pru Life UK’s single-pay insuravest solutions.

Existing Pru Life UK policyowners of the Peso PIA plus and PRUmillionaire policies may request for a fund switch to the Peso CFF.

Contact us today to learn more on how to avail of the fund.

Note:

*Payout is not guaranteed. Payout shall be at the discretion of Eastspring Investments (Singapore) Limited and Pru Life U.K. This may be made out of any of the following: (a) income; or (b) net capital gains; or (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. The amount of payout may vary over time and there may be period/s when there is/are no declaration/s of distribution.

Contact us

Inquire about the PRUlink cash flow fund – Php hedged share class for PRUlink investor account plus or PRUmillionaire by sending us a message below.

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