There is a demand for an investment-linked fund that pays regular income distribution, said Etiqa chief bancassurance officer Siti Nita Zuhra Mohd Nazri.
ETIQA Life Insurance Bhd has launched the Premier Asian Equity Dividend Fund, at a time when Asian companies are expected to rebound strongly alongside a strong inoculation drive in the region.
It is Etiqa’s first open-ended investment-linked fund with income distribution to policy owners.
The fund is targeted at individuals who prefer a continuous income stream and those who have an appetite for a higher risk investment strategy.
This is achieved through exposure to Asia Pacific equity, with the possibility of attractive dividend yields and steady capital growth over the medium to long term.
Etiqa chief bancassurance officer Siti Nita Zuhra Mohd Nazri said they were excited to offer customers the Premier Asian Equity Dividend Fund – Etiqa’s first open-ended investment-linked fund that pays income distribution to policy owners of its insurance product, Dynamic Invest.
“The fund’s launch is timely, as earnings for Asian companies are expected to recover strongly as Covid-19 vaccinations become more widely available, coupled with the low interest rate environment which will drive appetite for dividend income,” she said.
“Dividend funds tend to experience lower volatility while providing potential income and an opportunity to participate in potential capital appreciation.
“Dividend yields in the Asian region tend to be higher than other regions, thus making the fund an even more attractive option,” she added.
The fund aims to pay dividends on a semi-annual basis, generated from any potential dividend paid by the underlying companies invested by the target fund.
The Premier Asian Equity Dividend Fund has been designed to deliver income and capital growth by investing in equities of Asia Pacific – with the exception of Japan – over a medium to long term investment horizon.
The vibrant Asia Pacific ex Japan market is packed with attractive dividend paying listed companies, which tends to be more resilient across various market conditions based on historical track record.
At least 95% of the funds will be invested in an approved Asia Pacific ex Japan equity fund and the remainder in cash and fixed deposits.
The panel of target funds – namely the Asia Equity Dividend Fund and the Asian Equity Yield Fund – are managed by award-winning fund managers JP Morgan Asset Management and Schroder Investment Management respectively.
Siti Nita said there is a demand for an investment-linked fund that pays regular income distribution.
“We have identified a suitable fund solution that satisfies our criteria to meet the demand,” she said.
Access to Premier Asian Equity Dividend Fund is through Dynamic Invest, which provides insurance coverage up to age 100.
The plan pays up to 125% of the initial single premium amount in the event of death and total and permanent disability.
Policy owners are able to mix and match their investment portfolio from a selection of 11 funds to suit financial needs and risk appetite.
They also have the flexibility to switch funds, top-up or make partial withdrawal at any time.
There is also a guaranteed acceptance up to RM1mil to ensure quicker insurance coverage while investing.
Another feature of the fund is the guaranteed creditor proof, which provides peace of mind to family members as the life insurance benefits payable to the nominees are protected against creditors.
The Premier Asian Equity Dividend Fund is underwritten by Etiqa and is exclusively distributed by Maybank.
Dynamic Invest is available through Maybank. For more information, call 1300 88 6688 or visit www.maybank2u.com.my.
