PRU LIFE UK has reported that it is on track to launch its asset management company before the end of this year, in line with providing its clients more diversified options for their fund investments.
During a news conference on Monday at the Marriott Grand Ballroom in Pasay City, Pru Life UK President and CEO Antonio G. de Rosas told reporters that it will be launching its own asset management company in the fourth quarter of this year.
“We are on track to open an asset management company before the year ends, and by that time we’ll offer bigger solutions in terms of fund [diversification],” de Rosas said.
He explained that Pru Life UK has already secured the necessary approvals from the regulators, like the Bangko Sentral ng Pilipinas (BSP), among others, and that it is only finalizing its own internal governance requirements before launching the asset company.
“We…announced that we have a license from the BSP already and we also have approval for several products right now; it’s more of getting ourselves ready in time for our target launch which is before the end of the year. So there’s a lot of things that we still need to be doing in terms of processes, to satisfy the requirements not only of the regulators, but also our own internal governance requirements before we can launch. We want to do this right and we want to protect our investors also. But we are, so far, on track in launching before the end of this year,” he added.
De Rosas pointed out that the bond funds to be offered under the asset management company will also include offerings from Eastspring Investments (Eastspring), the asset management partner of Pru Life UK.
“For the asset management company, there will be no life insurance cover, just pure funds, so we are flexible in the kind of products we will offer…. But our distinct advantage compared to other companies is that we already have a big menu of funds offered by Eastspring which are offshore funds which we can feed into…” he said.
“It’s just our continuing efforts to continue to diversify our portfolio so that our clients will have more access to the different types of investments out there or which are available out there. Unfortunately, the local markets are too shallow, not offering enough diversification, so we look offshore…. And that’s just our strategy in providing more diversification for our clients…. There are many structural reforms needed… before we can deepen our capital markets. First we have to increase investor base; two, increase liquidity and reliance on the banking system,” he added.
On the same day, Pru Life UK also revealed that it is set to launch its PruLink Global Market Navigator fund, a peso-denominated multi-asset fund offering higher return potential by investing funds in a diversified mix of equities, bonds as well as alternative assets from different regions.
Pru Life UK also introduced its Future Safe Rider product, which is a supplementary benefit that can be attached to the policies of clients, increasing their respective original coverage amount by 5 percent compounded annually until it reaches 50 percent.
In January, Pru Life UK said it is eyeing to open its own asset and trust company this year, to cater to the different financial needs of its clients.
Pru Life UK Senior Vice President and Chief Marketing Officer Allan M. Tumbaga told reporters that the British life insurer is looking to build its own asset and trust company in the Philippines this year. It is only awaiting the go-ahead of the BSP.
He said the company will be named Pru Life UK Asset Management and Trust Co., headed by Pru Life UK Vice President and Chief Investment Officer Antonio L. Garces II. Tumbaga said the trust company will offer Unit Investment Trust Funds. Pru Life UK is affiliated with Eastspring, the fund manager of Prudential Plc.