When investment-linked insurance becomes part of a sound investment portfolio

Generali Vietnam has last week launched its VITA – Live Prosperously Vita, an unit-linked insurance product with investment funds managed by fund management firms VinaCapital and Dragon Capital’s subsidiary VietFund Management (VFM). These firms now collectively hold some $7 billion in assets under management and have a track record of some 11-17 per cent annual returns on bond and stock investments.

While real estate, stock, gold, FX and bond have emerged as some of the popular investment channels in recent years among local investors, investment-linked plan is rather new but it is considered as a 2-in-1 solution that not only protects, but also help the policyholders invest in a wide variety funds with different level of risk appetites.

“VITA – Live Prosperously key competitive differentiator in the Vietnam life insurance market is the fact that it helps customers optimise returns when the four investment-linked funds are managed by VinaCaptial and VietFund Management – the top two fund management companies in Vietnam,” said Tina Nguyen, CEO of Generali Vietnam.

“In addition, customers can customise their investment options with flexible selection of funds to better suit their personal risk appetite and expected returns. Generali’s customers can also change up their investment plan among these four funds throughout the year.”

According to the Italian-backed insurance company, customers can choose among four investment funds that best suit their profitability expectation and risk acceptance level. They include the low-risk and stable-return VND-denominated bond investment funds and high-risk and optimised-return VND-denominated stock investment funds initiated by VinaCapital and VFM.

Both VinaCapital and VFM have pledged to leverage their unique strength and expertise to help maximise profitability for customers.

“Our responsibility is to provide Generali customers the highest possible return and the best risk management in both the bond and stock funds,” said Andy Ho, managing director and chief investment officer of VinaCapital, at the launching of the insurance product in Hanoi at the weekend.

VinaCapital’s investment strategies, as Ho noted, always take into account the targeted companies’ financial performance, compliance, business environment and corporate governance before making any investment decisions to ensure safe, sound and optimal returns for their clients.

VinaCapital’s portfolio now includes Vietjet Air, Hoa Phat Group, Phu Nhuan Jewelry and others.

On the protection side of the product, Generali customers are comprehensively protected and assured with the total sum assured and policy account value in the event of death or permanent disability.

In addition, customers are also protected against other events such as critical illnesses and hospitalisation.