Pru Life launches global equity fund

MANILA, Philippines — Insurance giant Pru Life UK has launched an equity fund invested mostly in the US stock market.

Pru Life UK vice president for investment marketing Mark Valino said yesterday the life insurer would start offering PRULink Global Equity Navigator Fund to its policyholders on Monday.

Structured as a feeder fund, it invests in capital markets worldwide through a mix of equity portfolios like exchange-traded funds, direct equity investments, index futures and derivatives.

According to Valino, at least 56 percent of the fund is invested in US stocks as of June. Likewise, the firm allocated portions of the fund to equities in Japan, South Korea, UK, Canada, Brazil, France, Switzerland, Germany and Australia, with the goal of gaining from their recovery from the pandemic.

Valino said information technology took up the largest share of the fund among all sectors at 17 percent. Further, investments were funneled into financials, consumer staples, materials, consumer discretionary, health care, communication services, industrials, energy, utilities and real estate.

Valino said the fund includes equities in technology powerhouses like Microsoft Corp., Apple Inc. and Amazon.com.

He said the firm employs a multi-factor approach in growing the fund contrary to similar programs where investments are made only in blue chips.

In particular, Valino said the insurance firm gauges the momentum, size, quality, value and volatility of a stock to make sure it widens the fund’s growth prospects in the long term and cuts its risk exposure to market adjustments.