Pru Life UK launches tech feeder fund

PRU Life Insurance Corp. of UK Philippines (Pru Life UK) has launched an investment fund powered by ATRAM Trust Corp. that aims to take advantage of the growth of global technology companies.

The PRULink Global Tech Navigator Fund lets investors access the ATRAM Global Technology Feeder Fund, which targets Fidelity International’s Fidelity Funds-Global Technology Fund.

The company wants to have P30 million in assets under management (AUM) for the fund within the first year of its launch, Pru Life UK Chief Product Officer Garen U. Dee said at a media roundtable on Wednesday.

The Fidelity Funds-Global Technology Fund is one of the largest in the world with $23.9 billion in assets as of July. Meanwhile, the ATRAM Feeder Fund has P7 billion AUMs.

The PRULink Global Tech Navigator Fund invests in tech-driven companies such as Alphabet, Inc., Amazon.com, Apple, Inc., Microsoft Corp., Samsung Electronics Co. Ltd., and Taiwan Semiconductor Manufacturing Ltd.

“Aside from the growth in the tech sector, since the fund invests in dollar-denominated stocks, we’re able to invest in it using our peso. There are additional potential returns coming from the foreign exchange market. Of course, take note that while there’s a potential return, there is also a potential loss, depending on the performance of the peso,” Ms. Dee added.

The fund mostly invests in stocks, but up to 10% may also go to non-equity assets such as time deposits or any central bank-issued securities.

It is benchmarked to the Morgan Stanley Capital International, the All Country World Index, and the Information Technology Index.

ATRAM Chief Marketing Officer Andrew P. Caw said that while the ATRAM Feeder Fund cannot guarantee specific returns, it has performed strongly over the past five years, with an annualized return of 23.18% and a cumulative performance of 183.59%. In 2023, the fund had a return of 40.79%.

“We can’t put a return for that but based on the forecast, in the sense of the possibilities of the market, one can really say that definitely, one should have tech in their portfolio,” he said.

The fund is suitable for investors with aggressive appetites, or those who want long-term capital appreciation but can deal with high investment volatility, he added.

Mr. Caw said investors also benefit from the fund being actively managed, which protects them from the sector’s current volatility.

“How we manage the product through Fidelity is more of a contrarian approach to what the market wants. We’re kind of avoiding the hype stocks… because we think there are some stocks that are very expensive and don’t really hold any value,” he said.

“Fluctuations happen. Volatility happens. Whenever there’s volatility, those are the opportunities for us to actually get in,” Mr. Caw added.

Interested clients can access the funds as an option by buying specific Pru Life UK variable life insurance products, namely PRULink Assurance Account Plus, PRULink Elite Protector Series, PRULink Exact Protector, PRULink Investor Account Plus, PRUHealth Prime, PRULife Your Term with Variable Rider, and PRUMillionaire.

ATRAM has P360 billion in AUMs as of June 2024.

Meanwhile, Pru Life UK has over 170 branches and general agency offices in the Philippines, with a life insurance agency force of more than 38,000 licensed agents.

It booked a premium income of P46.19 billion and a net income of P4.36 billion in 2023, data from the Insurance Commission showed. — Aaron Michael C. Sy