AXA Life Insurance Corp. (AXA PHL) announced the inclusion of its Global Real Estate Investment Trust (REIT) and Property Income Fund (GREIT-PIF) to its portfolio of income-paying funds (IPFs).
According to AXA Philippines Chief Marketing Officer Fernando Villar, the firm’s new product gives high-net-worth investors “substantial returns” as they stand to gain monthly cash payouts of up to 5 percent per annum “while providing potential gains in capital appreciation according to market conditions.”
The GREIT-PIF also allows them to tap into diverse global real estate sectors, including residential, hotel and resorts, retail, communication infrastructures, data centers, industrial, and healthcare spaces, “which is a good way to diversify one’s portfolio,” Villar added.
What’s more, they are given at least 125-percent protection for their legacy while ensured of a seamless wealth transfer to their heirs, according to AXA PHL.
“Because the fund is linked to an insurance product, one has guaranteed life insurance coverage for as long as he or she maintains the policy,” Villar said.
According to the insurer, the move would give Filipinos a chance to bet on REIT funds, which continuously have become in-demand due to the funds’ growth potential. It added that the market capitalization of REITs increased to $1.9 trillion, representing an estimated 17 percent growth annually.
Ownership of such prime investments in the world puts investors at the forefront of profitable property opportunities and passive income-generating assets, according to AXA PHL.
Capitalizing on the GREIT PIF has more benefits to investors, as per Dexter Agcaoili, product category head for unit-linked funds.
“Investing in REITs is a smart move for investors looking to generate passive income without the burdens of direct ownership. REITs offer a unique opportunity to diversify portfolios and invest in real estate without worrying about illiquidity, property management, and upfront costs,” Agcaoili said.
In a brief, Maybank Investment Banking Group Philippines noted that the local property and REIT sectors posted 37 percent and 13 percent year-on-year (YoY) profit growth in the nine months of the year and came in-line with MIBG’s fiscal year (FY) 2023 estimates at 78 percent and 76 percent, respectively.
The MIBG said it maintains its positive outlook “given our projected 16 percent/18 percent YoY and 13 percent/15 percent FY 2024 estimated revenue/net income growth for property and reits, respectively.”
AXA PHL has been offering IPFs such as the “Global Assets Income Paying,” or “Gain,” Fund to support customers in building a diverse global investment portfolio and maximizing wealth growth.
The firm said its GREIT PIF further enriches the insurer’s IPF portfolio by offering customers a specialized real estate investment option, granting exposure to a promising global market.
“We are happy to offer top holdings consisting of the largest global REITs to Filipino investors. These include prominent industrial REITs serving clients like Amazon and Walmart, as well as data center REITs catering to major technology giants such as Google and Apple, among others,” Agcaoili said.