The PruLink Cash Flow Fund (PCFF) is the first US dollar-denominated payout-based fund that seeks to provide investors with regular payouts of up to 4 percent by investing in a diversified portfolio of assets.
Pru Life UK president and chief executive Antonio Manuel de Rosas said because the fund is “diversified, liquid and offers good yields,” it provides less risks compared to other investment tools.
“The PCFF provides access to diverse credit and equities markets that provide a potentially less risky portfolio compared to a 100 percent 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 said.
The payouts, which are not guaranteed, are sourced from income, net capital gains, or capital of the fund.
The payouts will be at the discretion of the Singapore-based fund manager Eastspring Investments (Singapore) Ltd. and Pru Life UK.
The PCFF is invested in US high yield bonds, Asian bonds and Asian equities managed by Eastspring Investments.
The fund is initially available to those availing of Pru Life UK’s PruMillionaire policies, a US dollar-denominated single-pay investment-linked product.
“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 percent yearly,” said de Rosas.
De Rosas said in a few months, the fund will be added to its other investment products.
source: www.abs-cbnnews.com
