Life insurer Allianz Ayudhya Assurance has teamed up with its global and domestic partners to launch sustainable mutual funds as an option for its unit-linked customers to access global companies under a sustainability theme.
The initiative, which targets customers seeking life protection alongside investment opportunities, will become the focus of the insurer as it attempts to grow its unit-linked premiums by 40% as projected, said chief agency officer Virong Patanakumjorn.
Managed by Allianz Global Investors, a global asset and investment management firm under the Allianz Group, Allianz Dynamic Multi Asset Strategy SRI (DMAS SRI) 75 and DMAS SRI 50 are the two new mutual funds, described as having enhanced returns with acceptable risks.
“Unit-linked products have been gaining in popularity, especially among customers interested in personal finance and investments,” he said.
These products offer flexibility in coverage, premium payment options, and investment returns corresponding to the policyholder’s risk appetite, presenting opportunities for long-term gains, said Mr Virong.
Allianz Ayudhya has developed products and selected diverse mutual funds, ranging from money market funds and bond funds to equity funds, recently introducing funds with multi-asset investment strategies, providing customers with options for risk diversification.
DMAS SRI funds are fed through Krungsri Global Dynamic Mutual Funds, managed by Krungsri Asset Management Co Ltd.
Krungsri Global Dynamic Mutual Funds are offered with two options catering to different risk profiles. Krungsri Global Dynamic Aggressive Allocation SRI-Institutional Investors (KFGDA-I) invests in equities ranging from 0% to 125%, with target volatility of 10-16%. Krungsri Global Dynamic Balanced Allocation SRI-Institutional Investors (KFGDB-I) invests in equities ranging from 0% to 100%, with target volatility of 6-12%.
Both funds follow the dynamic multi-asset strategy, diversifying investments across various global asset classes to generate stable long-term returns. The asset allocation is regularly adjusted in response to global economic conditions, according to Mr Virong.
“The funds prioritise socially responsible investing (SRI), focusing on companies with superior environmental, social and governance (ESG) scores compared with their industry peers,” he said. “Underperforming securities are excluded from the portfolio to ensure the highest standards of sustainable investments are met.”
Allianz Global Investors has more than €555 billion in assets under management and a presence in more than 20 countries.