Centennial Max Plan is Great Eastern’s latest Investment-linked plan, and it’s the first plan that offers 100% Capital Protection. The investment period is 5 years.
What this means is that if you invest RM 50,000, it would still at least be RM 50,000 five years later when the fund matures.
The fund manager for this fund is BNP Paribas, which adopts the BNP Paribas Spectrum Long/Short Style strategy. Generally, the strategy is to buy expected outperformers and to sell expected underperformers simultaneously. Hence, one can expect the Portfolio Turnover Ratio to be quite high.
The potential return in 5 years, generated using historical data ranging from January 1999 to April 2008 is projected at 57.56% (excluding potential currency returns) or 74.21% (including potential currency returns).
The minimum investment is RM 20,000 and maximum is RM 1 million per account. Included in this investment-linked plan is Death and Total Permanent Disability, without any insurance charges. Other than no insurance charges, there are also no fund management and policy charge. The initial service charge of 5% applies.
Centennial Max Plan is open for investment between 27th May 2008 till 26th June 2008. So hurry up!
Via Business Times…
GREAT Eastern Life (Malaysia) Bhd expects RM100 million in sales for its latest single premium investment-linked product.
The new plan, Centennial Max, invests in a close-ended capital protected investment-linked fund and matures at the end of five years.
It can see an average return of 74.2 per cent or a high of 160.7 per cent over five years, based on backtesting results.
“The plan will provide capital protection and generate high returns in a time of market volatility as it invests in structured products,” chief executive officer Koh Yaw Hui said at the product launch in Kuala Lumpur yesterday.
The structured products include two components which are ringgit-denominated financial instruments, such as money market instruments, and a euro-denominated option on a portfolio of indices and defensive assets such as a zero coupon bond.
The latter component refers to the BNP Paribas SPECTRUM Long/Short Style Excess Return Index.
“We chose this index because amidst market uncertainty driven by high crude oil prices and rising food prices, it employs a ‘market neutral’ strategy,” said Alan Tan, vice- president for equity investment.
This strategy captures returns and capitalises on up and down markets.
It also provides diversification as it invests in a basket of eight indices comprising of four American and four European indices.
Tan said the life insurer will be adopting a cautious investment strategy for now as local market uncertainty continues due to inflation pressure and the local political climate.
The Centennial Max plan, which targets the financially mature market, sees a minimum investment of RM20,000.
The plan includes insurance coverage on death and total permanent disability during investment period.
It offers protection up to 125 per cent of the capital.
Offer period is till June 26.
The Star Online…
KUALA LUMPUR: Great Eastern Life Assurance (M) Bhd plans to unveil at least two more products this year following the launch yesterday of its Centennial Max Plan, said chief executive officer Koh Yaw Hui.
The insurer would be ??xploring an annuity plan and also enhance our already very strong medical plan,?? he told reporters after the launch.
Koh said Great Eastern was targeting new business premium growth of 10% to 15% this year.
As at end-2007, total premiums were slightly over RM800mil.
The Centennial Max Plan is a single premium investment-linked product that is close-ended and capital protected.
The product has a maturity of five years and provides life as well as total permanent disability coverage up to 125% of the initial investment.
Based on historical back testing, the plan aims to give an average return of 74.2% upon maturity, but could potentially hit a maximum of 160.74% return over five years.
The minimum achieved in back testing was a return of 26.47% over five years.
Koh said Great Eastern was confident of hitting its sales target of RM100mil for the new plan.
The minimum investment for the plan is RM20,000. The offer period is one month.
On whether there would be other similar single-premium products from Great Eastern, Koh said this depended on market response.
The plan is open to anyone aged from one year up to 70 years on their next birthday.
The investment-linked product employs an active ??arket neutral?? strategy in investing to capture returns in both bull and bear markets, with the reference index being the BNP Paribas – SPECTRUM Long/Short Style Excess Return Index.