THE INSULAR Life Assurance Co. Ltd. (InLife) has launched a variable unit-linked (VUL) fund with potential monthly income payouts through exposure to the Nasdaq-100 and a covered call options strategy.
The Global Equity Premium Income Fund (GEPI), which provides monthly income by selling call options to generate option premiums, is designed to become more valuable and improve the income of the fund during periods of market volatility.
GEPI invests through a feeder fund into JPMorgan’s Nasdaq Equity Premium Income ETF (JEPQ), which provides exposure to companies similar to those represented in the Nasdaq-100 Index.
The Nasdaq-100 tracks 100 of the largest nonfinancial companies listed on the Nasdaq stock market, including the world’s largest technology players.
The fund is intended for investors seeking a smoother Nasdaq-100 investing experience while achieving regular monthly income payouts. It may also complement existing income investor portfolios by providing higher yields.
“Filipino investors are increasingly seeking global growth opportunities, particularly in innovation and technology, but often hesitate due to market volatility. With GEPI, we are bridging this gap by combining exposure to world-leading tech innovators with an active covered call strategy. This allows our policyholders to avoid the common trap of exiting their investments during heightened market volatility, helping them navigate different market environments with greater confidence,” InLife Chief Product and Innovation Officer Jose Eduardo O. Ang said in a press release on Thursday.
The product will be available for new applications and eligible existing InLife VUL policies for fund switches and top-ups, including Wealth Assure Plus and Solid Fund Builder, subject to applicable eligibility requirements.
InLife’s net income stood at P1.079 billion as of end-June. It had total assets of P178.263 billion, while its total premium income was at P16.48 billion. — Aaron Michael C. Sy