How many of us have ever done funds switching in an Investment-linked insurance policy or Investment-linked Insurance Plan (ILP)?
The most likely answers are “No, never,” or “Hardly.”
At Unicorn, we are concerned with all aspects of our clients’ Finances, which include Wealth Protection (where ILPs are our focus today), Wealth Accumulation, Wealth Management, and Wealth Distribution.
As our Investment Committee looks into many countries, sectors, as well as instruments in order to recommend the next best thing to invest, funds in our clients’ ILPs have not been forgotten.
This is our current Unicorn Investment Portfolio Allocation:
After our recent profit-taking exercise in the U.S., we believe in the potential values of each of these sectors in the future.
Funds in our clients’ ILPs will also be switched to reflect this belief to assist our clients in accumulating more wealth or cash values in their ILPs; and these funds will be invested mainly into China and Asia.
We have included examples below in the selection of our ILP funds so that our clients are informed, and we shall also regularly review our clients' ILP allocation to keep our recommendation broadly in line with our model portfolio, which are all part of the real care clients can expect from Unicorn.
For AXA:
China Region
AXA China Growth Fund is 100% into equities. It has not performed as well as compared to other China funds even though it has achieved a return of 8.82% over the last 1 year1.
Asia Region
It is proposed to maintain investments with AXA Pacific Equity and AXA Asian Growth Fund as these Asian funds help us maintain exposure to China as AXA China Growth Fund is the only China fund. For example, AXA PaciHic Equity has 26.2% of exposure into China2.
For HSBC:
China Region
HSBC Link China Balanced Fund is recommended as the fund is primarily 70% invested into DWS China Equity which is one of our recommended funds for China and 30% into DWS Lion Bond Fund3. We also recommend HSBC Link China Balanced Fund as the other China fund, the HSBC Link China Equity Fund, has been performing consistently below the benchmark4.
Asia Region
It is also recommended to maintain HSBC Link Pacific Equity as our Asia fund as it has been generally performing better than the benchmark fund5.
1AXA China Growth Fund factsheet (December 2013):
http://www.axalife.com.sg/assets/pdf/funds/AXA007-factsheet.pdf
2AXA PaciHic Equity Fund Factsheet (December 2013):
http://www.axalife.com.sg/assets/pdf/funds/AXA004-factsheet.pdf
3HSBC Insurance China Balanced Fund Factsheet (December 2013):
4HSBC Link China Equity Fund Factsheet (December 2013):
5HSBC Insurance PaciHic Equity Fund Factsheet (December 2013):
For Manulife:
China Region
Golden Regional China Fund, a sub-fund, invests all or substantially all its assets into DWS China Equity Fund (“Underlying Fund”)6 which is a fund that is in alignment with our Unicorn Investment Portfolio Allocation.
Asia Region
Manulife Pacific Equity Fund is a sub-fund that feeds into Aberdeen Pacific Equity Fund (“Underlying Fund”)7 which is also a fund in alignment with the Unicorn Investment Portfolio Allocation. Instead of only allocating only into the Manulife Pacific Equity Fund, we also included another Asia Fund, Golden Asia Growth Fund, for diversification. This latter fund has also been performing comparably well to the benchmark fund over the past 1 year8.
6Manulife Financial Golden Regional China Fund Factsheet (December 2013):
https://www.manulife.com.sg/pdfs/FP_ILP_Golden_Regional_China_Fund.pdf
7Manulife Financial Manulife PaciHic Equity Fund Factsheet (December 2013):
http://www.manulife.com.sg/pdfs/FP_ILP_Manulife_PaciHic_Equity_Fund.pdf
8Manulife Financial Golden Asia Growth Fund Factsheet (December 2013):
http://www.manulife.com.sg/pdfs/FP_ILP_Golden_Asia_Growth_Fund.pdf
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