Russian state-owned bank Sberbank is offering its clients new strategies for investment life insurance (ILI).
Image: Sberbank head office in Moscow. Photo: Courtesy of mos.ru/Wikipedia.org
Sberbank modified its ILI product line for premium clients. Three new strategies for classic ILI were developed for different market scenarios.
Coupon ILI now has updated asset baskets and coupon payment conditions. The updated ILI programs are available to premium and VIP clients of the bank through the Sberbank Premier and Sberbank First channels.
Classic ILI now features the New Technology 3.0, Global Bond Fund 3.0 and Index of Economic Cycles strategies.
Global Bond Fund 3.0 will consist of sovereign bonds of over 50 countries, including the US, Germany and other countries of the EU, along with bonds from some of the largest global companies such as Goldman Sachs, Citigroup, Delta Air Lines, Amazon, eBay and others.
A majority of these bonds have high credit quality, which is claimed to increase the strategy’s reliability. The diversification of securities also allows clients to participate in profit making from bonds of different sectors of the economy.
New Technology 3.0 will include stocks from 30 international companies that specialise in creating new products in different areas. These technology companies include Canon, Microsoft, Oracle, Motorola Solutions, Harris Corp, Fujifilm Holdings and others.
This strategy is expected to bring clients the opportunity to invest in fast growing sector of the economy with international diversification.
The Index of Economic Cycles fund will offer clients an opportunity to invest in stocks and bonds whose proportion will change constantly, depending on the stage of the economic cycle and inflation pressure level that corresponds to it.
This fund is expected to differ because of its flexibility to change as per the current market conditions.
The new asset basket of the coupon ILI for the Sberbank Premier channel will include stocks of Mitsubishi, Hyundai, Infosys, Baidu, and Bank of China. 13% is the maximum coupon rate for rouble policies and 7% is the maximum coupon rate for US dollar policies.
The new asset basket of the coupon ILI for Sberbank First will consist of stocks of American companies including General Electric, Lockheed Martin, Verizon, and Broadcom. The maximum investment coupon rate is 12% for rouble policies and 6.5% for US dollar policies.
Sberbank senior vice president and wealth management block head Natalya Alymova said: “The new strategies for investment life insurance programmes were developed based on the research on clients’ requests via the Sberbank First and Sberbank Premier channels. The updated programmes take into account the current needs and risk profiles of clients and are aimed at different market scenarios.
“The fund with tech company stocks is aimed at development growth, the bond fund – at handling market instability, and profit from coupon ILI is less dependent on the implementation of one or another market scenario.”