Manulife launches new investment fund

The local unit of global insurer Manulife has launched a new foreign currency-denominated investment fund as a sweetener to those who will buy its premium insurance products.

The new instrument—US Dollar Global Target Income Fund—will be invested in a diversified portfolio that includes global equities and bonds.

Based on a statement on Tuesday, Manulife said this fund aims to “deliver a higher US dollar payout rate per annum than the usual US dollar time deposits” and is designed to “weather market seasonality to achieve the most favorable balance of income and capital growth.” Such goal is envisioned to be achieved through “dynamic asset allocation across a diverse range of asset classes and geographies.”

This fund is available to customers who will avail themselves of Manulife’s insurance products “Affluence Gold” and “Affluence Gold Max”—for a minimum investment of $2,500 and $12,500, respectively.

The death benefit for Affluence Gold and Affluence Gold Max varies according to the premium invested. The death benefit is either the face amount or the account value, whichever is higher at the time of death.

Account value is the value of the investment, while the face amount is 125 percent of the single premium paid.

For example, if the single premium paid was P100,000 (which means the face amount is P125,000 or 125 percent of the single premium paid) and by the time the person died, the account value is P110,000, the person will receive P125,000 as death benefit.

Manulife Philippines said this investment fund would give customers the opportunity to optimize the potential returns of their foreign currency insurance investments. Doris Dumlao-Abadilla