AXA Philippines expands its Asset Master fund options for wealth growth and legacy protection
In a recently conducted market review, improved economic outlook has been observed with the prospect of central bank rate cuts aiding global bonds to perform well and driving demand for riskier assets like stocks. While the timing of the rate cuts may vary between the US and Europe, the Philippines is seeing a substantial 36% rise in investments already as approved by the Board of Investments (BOI) in the first half of 2024 compared to the same timeframe the previous year.
Investors’ confidence lies on the performance of the market with each having a preferred investment vehicle to grow wealth and live comfortably even after retirement. However, the world of investment is always in motion with the market indexes experiencing daily gains and losses. In long-term investing, it is important to look ahead and prioritize not just wealth growth but wealth protection strategies to secure one’s future whatever happens in today’s market movements.
Investing in Efficient Wealth Management
Investors may have different risk profiles and appetites, but the ultimate goal for all should not end in growing wealth. It is the ability to preserve that wealth and keep the legacy for many generations to come. This is where the crucial role of estate planning comes in. All too often, inheriting wealth is far from the fairy tale most think it to be. Filipino heirs often face a multitude of challenges, including estate taxes, frozen assets, and even astronomical medical bills left by the deceased.
The estate tax rate in the Philippines further complicates matters. The current tax code imposes a 6% tax of the value of net estate. This can significantly eat into any inheritance, and in cases of untimely death, heirs may even require time to put together the necessary funds to settle the estate tax or even secure a loan for the purpose. This is because when an individual dies, their assets are automatically frozen until their heirs can settle the taxes.
The bottom line is that simply leaving wealth behind isn’t enough to guarantee your loved ones’ financial security. Some go to great lengths to ensure a smooth wealth transfer to their heirs. This might involve hiring specialized succession planners to craft comprehensive roadmaps, which require a certain amount of trust and expertise. Another strategy is transferring assets while the individual is still alive and able to make decisions on distribution; however, this does not guarantee optimized returns.
Estate planning offers a more secure solution to these challenges. The most effective estate planning vehicle that can help cover immediate liquidity needs is inheritance via life insurance. It ensures a seamless transition of wealth, minimizing delays and maximizing benefits for your heirs. Most importantly, proceeds from life insurance plans are typically transferred immediately and are 100% tax-free for irrevocable beneficiaries, providing a lifeline to them.
Putting Your Legacy in Expert Hands
AXA Asset Master is an insurance and investment plan that provides investors with a simplified and seamless estate planning solution. It can help preserve their wealth for its eventual transfer with its guaranteed life coverage of 125% of the one-time premium, or the plan’s account value, whichever is higher.
Customers can grow their Asset Master’s account value through a suite of investment funds. The newest addition to AXA’s lineup of global equity funds, AXA Global Edge Equity Fund, allows customers to invest in expertly selected high-potential companies, positioned to benefit from the transformative trends of the global economy.
The AXA Global Edge Equity Fund via Asset Master aims to provide long-term capital growth by investing in both established and emerging companies with sustainable competitive advantages and solid financials. It is also an actively managed fund that undergoes regular asset reviews to achieve sustained growth over time.
“As Filipinos’ partner in their financial wellness journey, we want to ensure they have all the means to safeguard and grow their wealth with peace of mind. We have been in the business of protecting what matters for 25 years in the country, and so it is our priority to secure their legacy for all the succeeding years to come,” said Abel Vergara, Chief Proposition and Products Officer at AXA Philippines. “As proof point to this commitment, the AXA Global Edge Equity Fund uses a strategy that has a proven track record of investing early in companies positioned for growth, with some investments growing as much as 60x from the initial year. This alone provides promising longevity or sustained success over time.”
Examples of notable investments include global giants like Microsoft, Nestle, Alphabet, and Tesla. This strategy has also demonstrated resilience during market fluctuations, consistently outperforming benchmarks.
Aside from AXA Global Edge Equity fund, customers may also choose from other investment funds of Asset Master that match their goals, namely the Global REIT (Real Estate Investment Trust) and Property Income Fund, which invests in prime real estate in a broad range of sectors; Global Assets Income Paying Fund (GAIN), which provides dividends and diversified exposure to both global bonds and equities; and Global Advantage Funds, which specifically cover the 100 largest and most active non-financial stocks in the US.
To learn what Asset Master can do to help you grow your wealth and protect your legacy, go to: https://www.axa.com.ph/savings-investment/asset-master.
ADVT.
This article is brought to you by AXA Philippines through Geiser Maclang.
