News Flash, January 18, 2012
Commonwealth Life Unit Linked Yields Based on Stock Still Bright
After reaching the golden age in 2010, yields on unit linked products in 2011 fell, primarily unit linked based on stock. In fact, the year 2010, the unit linked stock gives benefits between 30% -40%. Unit linked stock performance fell because of capital market conditions that are also not good and that the shares eroded due to the effect of the European crisis.
Unit linked holders do not need to worry because there are bright prospects for unit linked stock in 2012. The reason is because Indonesia has being included on the investment grade countries and will encourage investors to invest in Indonesia, both real sector and the stock market.
Of the 10 insurance companies, as many as three life insurance companies have negative returns. Meanwhile, seven other companies only have a small yield. As seen on the table, Commonwealth Life recorded the highest yields growth that is equal to 4%.
*Source: Kontan daily, 3 January 2012
News Flash,September 27,2011
FSII Market Review
Recently, along with the collapse of global stock index, investors may begin to weigh whether they should do the cut loss for fear of the index will go down deeper. In general, investors who feel most anxious and thinking about doing cut loss are those who have invested in stocks or mutual fund shares, in which fairly significant decline in investment value. We will try to explain the reasons and implications of the cut loss action, hoping to help the process of investment decision.
The implications of the cut loss actions are the realization of losses that may not be small. Some investors who have or who will take this option generally feel uncomfortable, both to the losses suffered and to the conditions and prospects of the market ahead. Investors will then consider how the funds that exist today can go back to their original values before the loss occur (turnover). For that, investors need to consider where the fund of the sale result will be placed.
Cut loss may be executed by the investor if the risk profile is not suitable to invest in stocks. However, certainly with the decision of investors must be willing to accept the consequence that the yield obtained from the substitutes investment instrument for which might not be big as expected.
BNP Paribas Market Review
September 27, 2011
1. U.S. stock decline is driven by the signal that the U.S. should be cautious over the potential effects of the economic collapse problems in Europe. In addition, Moody's has also downgraded the banks rating in America.
2. The Fed has announced Operation Twist or simultaneously programs selling short tenor bonds (1-3 years) and long-term bond purchases tenor (60-30 years) which aims to reduce long-term interest rates. Therefore, the short tenor bond yields will drop (due to price rises) along with the strengthening of the USD.
3. The biggest selling pressure comes from global investors who have exposure to the Indonesia’s stock exchanges. For example is the ETF Market Vectors Indonesia (IDX U.S.).
4. In terms of currency, the Rupiah weakened to the level of 9200-9300 against the USD compared to the 8400-8500 level in early August. One of the triggering factors is the high demand for USD. Uncertain situation in Europe caused the Americans lenders more cautious in lending USD to their counterparty in Europe. As a result, the managers of European finance glance at their portfolio in Asia to meet the needs of their USD.
5. Indonesia Stock Exchange is one of the best performing stock exchanges in Asia; it's time for them to do the profit taking. Added by the precaution attitude in case of redemption requests from their customers, the demand for USD was eventually becomes high. The impact is the demand or the bidding for Non-Deliverable Forwards (NDF) which aims to hedging (hedging) any currency risk is high.
6. Seeing this background, Indonesia's capital markets and Rupiah expected to have negatively effect, but more to the short term. Fundamentally, Indonesia is still attractive for the buying investors. ADB (Asian Development Bank) increase Indonesia's PDB growth projection by 6.6% this year, and 6.8% for the year 2012 based on the investment for next year.
7. The factors that supporting Indonesia's PDB growth in the middle global recession scenario is:
1. Export ratio is lower than Indonesia's PDB today is 21% compared to the year 2008 by 30%.
2. Naturally, inflation is relatively low (estimated in the range of 5% this year and next year) make room for the BI and the government to lower the interest rates and execute the fiscal stimulus (pro-growth policy)
3. The remaining APBN budget amounted to Rp 235 trillion if it spends in infrastructure development can also lift up the PDB growth up to 4-5.
News Flash, September 23, 2011
Schroders Market Review
Regarding of the latest news about economic crisis that is predicted will hit Europe, the issue will affecting the market condition in Indonesia as well as the international market. Below are the Schroders evaluations towards the current market condition:
- The collapse of composite stock price index and rupiah is more to the technical factor and sentiment; it is triggered by the decay of the Europe condition. The fundamental Indonesian market and economic relatively do not change.
- Currently the composite stock price index valuation is more attractive compared to the regional
- Index fluctuation range and rupiah will getting wider due to the Europe and USA market volatility
- Stay focus on long term investment, “buy on fundamentals”, and do not affected by sharp volatility in the next 1 – 2 this month
- If you want to keep investing, do the “rupiah averaging” with more often subscription frequency but with the smaller volume, by the purpose to maximize the unit number on the valuation that is more attractive.
News Flash, August 26, 2011
CBA Group Has a Very Successful Year and Continues to Expanding in Asian Market
CBA (Commonwealth Bank of Australia) announced cash net profit after tax of $6,835 million, up 12% on the prior financial year. All CBA Group’s business units contributed strongly to this good overall result. IFS (International Financial Services) have again performed strongly, growing the NPAT (Net Profit After Tax) by 18% (in AUD terms) on the prior financial year. This result is even more impressive when it is realised that it equates to a profit uplift of 36%.
CBA China businesses’ financial result was very impressive, improving on last year’s profit. The levels of investment made into the development of the three county banks and the building up of BoCommLife.
In Indonesia, Commonwealth Life once again lifted its profit result over prior year and continues to be one of the CBA Group’s stellar businesses from an ROE (Return on Equity) perspective. Commonwealth Bank returned an adverse result compared to FY10 (Financial Year 2010) but their financial performance was solid when you take into account the level of reinvestment into the business, and the fantastic levels of growth in areas such as the SME and emerging affluent businesses, that took place.
The Ho Chi Minh City Branch an increase of 63% in customer numbers and strong loan and deposit growth. Mumbai is in the early stages of its development but it too significantly outperformed both its budget financials and its business case deliverables.
This resulted in the net interest income, insurance income and proprietary customer numbers increasing by 29%, 18% and 27% respectively on the prior financial year. Additionally, our network across Asia grew by 16% with new branches in two countries and three new County Banks in China. All in all, it is another very successful year with outcomes.
News Flash, June 30, 2011
Mutual Funds Fixed Income Remain Bright
Growth in fixed income mutual funds experienced significant growth compared to the other mutual funds in the first 5 months of this year. Fixed income mutual fund grows by 4.25% in the period as of December 31, 2010 until May 31, 2011, and mix mutual fund grows by 2.42%.
Equity funds and mix mutual funds gives the return lower than the fixed-income mutual fund investments. That is because the movement of stocks that tend to weaken compared with the closure in 2010.
Performance of fixed-income mutual funds was recorded grows by 4.25%, while the performance of the composite share price index (CSPI) 3.6%. As for the performances of mixed mutual funds under CSPI just 2.42%, while the performance of mutual fund shares are 1%.
*Taken from Bisnis Indonesia, 22 June 2011
News Flash, April 26, 2011
Commonwealth Life Financial Performance in the Year 2010
Throughout the year 2010, Commonwealth Life financial performance is getting stronger. Company's total gross premium income amounted to Rp 1.21 trillion, increase by 74% from the year 2009, while total net premium income was Rp 1.18 trillion, grows by 76%. The increase is supported by the higher unit-linked sales that were increased by 103% compared to the year 2009.
Company’s Total asset is amounted to Rp 3.4 trillion, increase by 30% from the previous year. While total claims and benefits is amounted to Rp 498 billion that was been paid to more than 3,000 individual and group customers. This proves that Commonwealth Life has paid 95% of all incoming claims.
The company's net profit reached Rp 148.1 billion, grows by 28% compared to the year 2009. Company’s RBC or the level of capital adequacy was 609% of the required by the government which is 120%. This means that the company's ability to perform the risks protection that may arise is 5x larger than required.
News Flash, 14 March 2011
Get Profits from Unit Link Investment
If you have an intention to invest on unit link product, there are several tips that need to be considered in choosing unit link product. Before buying the unit link product, you should choose the type of unit link that is suit with your personality profile. Conservative customer should not choose the equity unit link, because the stock index always fluctuate so it may affect the ups and down of the investment fund, on the other way aggressive customer should not choose the fixed income type.
Unit link product divided into several types. First is cash fund that is placed the investment portfolio on the money market instrument such as time deposits, SBI and short term obligation. For customer that does not want high risk may choose that type of unit link.
The second type is fixed income unit link. The composition of investment fund of customer fund will be focused minimum 80% on the obligation instrument. This type is for the customer that wants profit on the optimum interest rate but also prioritizing the stable and consistent income.
The third type is managed unit link that generally placed minimum 80% of the customer fund on stock. For the customer that want maximum investment profit and bold to take the high risk then customer may choose that investment.
Once already knowing the types of unit link product, customer suggested buying unit link product from a well, big, and trusted insurance company. Also look on whether the claim process in that insurance company was difficult or easy. Then learn the product illustration that was offered and at last look after the result of return investment.
*Taken from kontan.co.id, 11 February 2011
News Flash, 11 February 2011
Bright Prospect to Invest on Multi Fund
High credit growth, increasing infrastructure spending, and commodity prices could trigger a positive surprise on earnings results issuers during 2011.
According to the projections of the Asian Development Bank, Indonesia's economic growth can still rise to 6.5% in 2011, and likely to grow an average of 7% during 2012-2014, as there are many positive factors that are very supportive.
First, Indonesia is still in early stages of the credit cycle in which the credit is still growing. Since the global crisis in 2008, new bank credit growth starts to increase from 10% in 2009 to 22% in 2010. With a healthy balance sheet and liquidity position, high credit growth cycle still can survive for the next few years. The central bank said credit growth of 20-23% so far can be achieved in 2011.
In addition, our country has the strength of a strong domestic economy supported by the rapid consumption growth. And also note that domestic consumption contributed two-thirds of the national GDP, while investment and net exports contributed amounted to 23% and 11%.
* Taken from BNP Paribas News Flash
News Flash, 17 January 2011
Stock Market Optimism in 2011
In 2010, capital market and bonds in Indonesia shows great performances. And in 2011, if its suit with the expectations and corporate earnings grows amounted to 18% by this year, then the market PE will grow and adjust with the new index level. It is predicted there will be raise in short period.
Foreign investment will enter and gives significant fund injection to the Indonesian economic. With the entry of foreign investment and infrastructure building as promised by the government, Indonesian economic in 2011 will grow. The entry of will raise the employment and people income.
Event though the market fluctuates due to the foreign investment taking profits, therefore the effects would not last. The strength of Indonesian economic eventually will be seen and investor will notice that our capital market was able to survive after the crisis in Asia. But on the other side, the discharge risk of foreign investor who want to take profits from the stock market and bonds that had ran for a couple of years will still exist.
If the GDP for 2011 reaches above USD 3.000 therefore the consumption level will rise. But the negative effects are the rise of the debt portion and the level of Home Loan penetration in Indonesia that is above the average. But that only shows the beginning of good economic cycle.
* Taken from FSII News Flash
News Flash, 28 December 2010
In 2011, Indonesian Economic Growth Shall Going Faster
In 2011, Indonesian economic will grow faster compared to 2010 economic growth that have the average growth of 6%. Indonesia’s buying power is quite strong, the government expense is also quite good and deficit is well maintained.
Indonesia believed by several parties has become the world economy strength by being at the 13th position and will be at the 9th in 2015 and later on it is expected to be ranked at the 5th in 2030. There are several sectors that will incredibly grow which are automotive, media, financial services, retail and health.
There are several risks that need to be wary for next year, which are the capital inflow pressure that is expected to be greater, the high price of grocery, the world raw oil price, inflation stability level and BI Rate.
The economic growth affects the growth of national insurance industry projection. In 2011, national insurance industry will continue grow positively, the projection of insurance industry growth on insurance industry may reach 40%. Regulator is preparing some incentives in form of regulation that will enhance insurance industry growth in 2011.
* Taken from Bisnis Indonesia, 30 November & 1 December 2010
News Flash, September 16, 2010
Investra and CommLink Daily Unit Price on Bloomberg
Now, to provide convenience to the Commonwealth Life investor (customer, sales force, employee, and business partners) in observing the Investra and CommLink daily unit price, besides through company website www.commlife.co.id, Bisnis Indonesia and Investor Daily newspaper, you will also be able to access www.bloomberg.com.
Below are the steps on how to access the web:
- Visit www.bloomberg.com
- Fill the Search Quotes and News at the top right with the searched of the fund type code – the code contains 7 character
- See each of the fund codes below:
| Investra: |
Code |
| Commonwealth Life Investra Balanced Target Fund |
CLBALTG:IJ |
| Commonwealth Life Investra Bond Fund |
CLBOND1:IJ |
| Commonwealth Life Investra Balanced Progressive Fund |
CLBLPRO:IJ |
| Commonwealth Life Investra Equity Syariah Fund |
CLEQSYA:IJ |
| Commonwealth Life Investra Money Market Plus Fund |
CLMOMAP:IJ |
| Commonwealth Life Investra Balanced Fund |
CLBLAN1:IJ |
| Commonwealth Life Investra Equity Fund |
CLEQUT1:IJ |
| Commonwealth Life Investra Equity Income Fund |
CLEQINC:IJ |
| Commonwealth Life Investra Equity Infrastructure Fund |
CLEQINF:IJ |
| Commonwealth Life Investra Equity Dynamic Fund |
CLEQDYN:IJ |
| Commonwealth Life Investra Balanced Syariah Fund |
CLBLSYA:IJ |
| |
|
| CommLink |
Code |
| CommLink Aggressive |
CLKAGGR:IJ |
| CommLink Moderate |
CLMODRT:IJ |
| CommLink Conservative |
CLCONSV:IJ |
- For example, to find the fund type of Commonwealth Life Investra Balanced Target Fund, just type CLBALTG:IJ. IJ on the behind of the code is the country code for Indonesia - do not forget the : sign.
- Press Enter
- On the screen will appear the ticker of the fund type intended including the snapshot of previous year performance.
- And so further to see the other types of fund.
News Flash, September 1, 2010
National Customer’s Day
National Customer’s Day is the day that every company could contemplate sincerely regarding its customer and the day that especially dedicated to the customer throughout Indonesia as an honored from the company to its loyal customer. The purpose of National’s Customer Day is to renew company’s commitment to the establishment of the corporate culture to make the customer as the central of the company activities. The National’s Customer Day was proclaimed on September 4, 2010 that is proclaimed by Megawati Soekarno Putri which is the former President of Indonesia.
For Commonwealth Life, the honored for its loyal customer’s not only dedicated in one day. Commonwealth Life never stops to realize to be Indonesia's Best Life Insurance Services Provider through Excelling in Customer Services. Those never ending commitments are also awarded to several awards that had been achieved by Commonwealth Life throughout 2010 such as Call Centre Award 2010 for Service Excellence, Investor Award and Infobank Award for the “Very Good” predicate.
* Taken from www.haripelanggan.com
News Flash, 23 August 2010
Choosing Professional Agent
The importance of insurance that covers old day fund, children education, income protection and health insurance started to be widely recognized by the society. By that, the society confronted into wide selections of companies, product variation, added by many agent selections. There are several things that need to be considered in choosing the insurance. First, choose trusted insurance company with good credibility. Second, decide the type of insurance product that is suit with the needs and the purpose. Last, choose the professional insurance agent to get best advices.
Next, in choosing professional agents there are several characteristic needs to be considered. First, the agents need to have high integrity and always positioned themselves as a trusted financial planner. Second, they should have high commitment to always prioritize customer’s needs and give the best services. The last, agents need to constantly updating themselves by continuously to add knowledge, insight, and skill for self development so they will be able to give the best and up to date suggestion.
* Taken from Investor Magazine, August 2010
News Flash, 14 June 2010
Commonwealth Life Presented COMM CI 50 Plus
With a concern for healthy life, Commonwealth Life releases a new additional insurance product called COMM CI 50 Plus. This product is designed to provide financial protection to customers who diagnosed with critical illness.
COMM CI 50 Plus provides protection against 53 critical illnesses of which are 10 major critical illnesses such as cancer, heart attack, stroke, coronary artery disease requiring surgery, kidney failure, major organ transplant, paralysis, blindness, heart valve surgery, Aorta and vessels operating.
This product delivers a wide range of benefits to provide customer’s peace of mind in facing the critical illness that usually comes suddenly and surprisingly. One of benefit of this product is a 100% money coverage that can be used as treatment and care if the customer has suffered from one of 53 critical illnesses, without compromising the basic insurance benefits. Not only that, an additional benefit of 50% of the sum insured is given if customer diagnosed one of the 10 major critical illnesses. COMM CI 50 Plus also gives additional benefits in a form of compensation for grief in USD 10 million if the customer dies. Last, customer will also get a choice of medical evacuation as the additional services, 24 hours - 7 days a week.
Photo caption: (from left to the right) Agus Setiawan (CFO and Technical Director), Tony Cook (Operational Director), David Ng (Agency Sales Director), Simon Bennett (President Director)
News Flash, 4 May 2010
Bumiputera Takes an Effort to Postpone the Finance Minister Regulation
Asuransi Jiwa Bersama Bumiputera 1912 (AJB Bumiputera 1912) takes an effort to postpone Finance Minister Regulation (KMK – Ketentuan Menteri Keuangan) No. 504/2004 about the financial health for insurance companies formed in law Institution yet unlimited company (Kesehatan Keuangan bagi Perusahaan Asuransi yang Berbentuk Badan Hukum Bukan Perseroan Terbatas).
Based on this regulation, each company has a duty to reach the balancing level of wealth as much as 70% in 2004, 75% in the end of 2005, 80% in the end of 2006 and at least as big as 100% for this year. And until now they already reach as much as 80%.
President Director of Bumiputera, Dirman Pardosi said that they will ask KMK to cancel their regulation for 5 years from now. The company has submitted the twelve accelerations of work programs as their commitment for its improvement. The twelve programs are about marketing, investment, human resources, information technology and corporate governance; and it will be executed in 2010.
He also said that company will improve the investment sector that appropriates with the regulator suggestion. The regulator will prosecute the company in order to manage the professionalism of investment with their manager or might be working together with the competent fund manager.
* Taken from Bisnis Indonesia 6 Mei 2010
News Flash, April 22, 2010
The Government of Indonesia Creates Underwriting Agency Policy
The regulator plans to create underwriting agency policy to protect insurance products. The Capital Market and Financial Institution Supervisor Agency, (Bapepam-LK) Fuad Ahmad Rahmany said that formation of this institution has the same function as deposit guarantee institution (Lembaga Penjaminan Simpanan - LPS) which guarantees customer deposit in banks.
Underwriting Agency Policy serves to assure funds of policyholders as a whole against the risk that would be happened. The objective is to avoid any acts of fraud conducted by unscrupulous companies, especially for insurance products that promising high yield.
Based on Government Regulation (PP) No. 81/2008 as the third revision of Government Regulation No.73/1992 on the management of insurance business as a whole, the company needs a minimum capital of Rp 40 billion in 2010 and Rp 100 billion in 2010.
* Taken from Bisnis Indonesia, 22 April 2010
News Flash, March 8 2010
Customers are Required to Take a Complete Test
To anticipate money laundry and terrorism, every potential customer of insurance, pension fund and financial institutions that contains risks must go through a complete test (due diligence). To support that plan, the Minister of Finance, Sri Mulyani Indrawati issued a Regulation of the Minister of Finance No.30/PMK.010/2010 about the Principal to Know the Customers for non-banking institutions. This regulation has been published in February 18, 2010. The government issued this regulation to fulfill the principle of ‘know your customer’.
Every non-banking institutions must have a special unit who serves to do a research and to check the identity of their potential customer. The special unit also responsible to make sure that the fund is not for money laundering or terrorism financing fund. In addition to interview and ask the customers documents, the non-banking institutions must also cross-check all information that given by customer. Customer’s document identification and verification should be increased to a more stringent due diligence for the high-risk customer.
* Taken from Kompas; Februari 19, 2010
News Flash, January 25 2010
In the beginning of 2010, activities in insurance business – especially in life insurance – are interested to be followed. Based on Insurance Media Research Institute data per December 2009, there are 26 life insurance companies – both domestic and joint venture – who offer unit linked product. Those 26 companies offer more over 250 kinds of unit linked products, including unit linked sharia product, which is even offered by life insurance joint venture companies*.
With the increasing number of new life insurance companies and variety of unit linked product that they offer, the competition in life insurance industry is tougher. Each life insurance company is competing to provide the best service to their Customer.
One was Commonwealth Life. Giving the best service to Customers is company’s commitment that will never change. Entering the year 2010, Commonwealth Life opened two new agency offices in Jakarta, placed in Setiabudi Building 2 and Graha Atrium. Commonwealth Life has also officially opened one new agency office in Bandung placed in Graha International Building, at Asia Afrika Street. With three new agency offices, Commonwealth Life hopes that the company can stand closer to their Customer and give the best service to them.
* Taken from Media Asuransi Magazine January 2010 Edition
News Flash, September 16 2009
Commonwealth Bank of Australia Do Care for Tasikmalaya
Tasikmalaya 7.5 magnitude earthquake which also rocked Jakarta on early September 2009 not only giving a scary and traumatic experience, but also causes hundreds of people died and injured, and thousands houses and public facilities damaged and shattered. Therefore, Commonwealth Bank of Australia (CBA Group) through its subsidiaries in Indonesia (Commonwealth Life, Commonwealth Bank and First State Investment Indonesia) is touched to donate AUD$100.000 through Kompas Humanitarian Fund for the victims in Tasikmalaya. Simon Bennett (Commonwealth Life President Director) and Nursing (Commonwealth Bank President Director) give the donation and directly received by Rikard Bagun (Kompas Chief Editor). The donation will be used for the post-disaster rehabilitation especially for houses and schools.
News Flash, July 27 2009
Inflation Link: Safeguard the Value of Your Sum Insured
Indonesia is one of countries with quite large inflation number compare to other countries. Based on Statistics Indonesia, inflation is the key indicator that shows price movement in goods and services consumed by customers. The movement will straightly impact the buying power and also people’s living cost and may impact the change of asset value, obligation, contract value, and business transaction.
As an illustration, Indonesian inflation rate in October 2006 reached 6,29%, 2007 reached 6,88%, and 11.77% in 2008. This year, Bank Indonesia predicts that inflation rate might be below 5%. This information is based on Statistics Indonesia announcement in June 2009 (mtm) of 0,11% and inflation year calendar January-June 2009 as much as 0.21%.
Looking at the unpredictable inflation rate, Commonwealth Life presents a new solution to protect the value of customers money from inflation through Inflation Link. Inflation Link is an additional feature from Investra Premier product so that the annual value of premium and Sum Insured will be adjusted to annual percentage of Consumer Price Index (CPI), which was calculated based on CPI monthly data and inflation rate in Indonesia periodically issued by Statistics Indonesia.
The new Inflation Link feature is offered to both Commonwealth Life customers and prospects. Customer may choose either 50% or 100% from CPI percentage to protect their investment and protection value.
Through this new facility, customers do not have to worry that their protection value will decrease from inflation. For more information, please visit the nearest Commonwealth Life Sales Office or contact Customer Service Center CommCenter (021) 2550 1234 (local access) or 0804 150 1234 (national access).
News Flash, July 10, 2009
Economic Condition Will Not Effect Your Investment Value & Sum Insured
Bisnis Indonesia (10/7) quoted President Susilo Bambang Yudhoyono statement that Indonesia’s economic condition may reach to 4.3% in 2009, while inflation predicted to reach 4%.
Shall the economic condition affect your Investment Value and Sum Insured?
Investra, Commonwealth Life’s unit link product, is very aware of your needs to protect them in facing fluctuate economic condition.
We’ll provide the solution. Coming soon!
News Flash, July 2, 2009
School Holiday with Commonwealth Life in Bobo Fair Jakarta and Surabaya
Commonwealth Life has once again participating in Jakarta Bobo Fair (1-5 July 2009) in Jakarta Convention Center (JCC) and Surabaya (8-12 July 2009) in Gramedia Expo. Carrying “Technology and I” as the theme, Commonwealth Life provide Nintendo Wii console game for the children.
This year is the 7th year for Commonwealth Life in participating in Jakarta Bobo Fair and the 2nd year in Surabaya. People have given their positive response to Commonwealth Life and that through this event; Commonwealth Life hopes that people will be more aware in providing life protection for their family.
Visit Commonwealth Life’s stand in Jakarta Bobo Fair in Jakarta Convention Center, Jl. Jend. Gatot Subroto, Jakarta 10270, Assembly Hall – Stand No. 19 and Surabaya in Gramedia Expo, Jl. Basuki Rachmat 93-105, Surabaya 6027 – Stand No. S8. Get unique merchandise for your children by participating in our games at our booth.
News Flash, April 28, 2009
Commonwealth Life and Commonwealth Bank Present CommLink and CommLink Premier.
In collaboration with Commonwealth Bank, Commonwealth Life launched their new bancassurance products called CommLink and CommLink Premier on 28 April 2009. This product launch also followed by the official signing ceremony from both parties represented by Simon Bennett (President Director of Commonwealth Life) and Andriaan Laoh (Deputy CEO of Commonwealth Bank) on 7 May 2009 in Mercantile Athletic Club Jakarta.
In addition to the previous bancassurance products, CommCare and Life Privilege, CommLink and CommLink Premier are presented to the Commonwealth Bank customers to complete their needs of an innovative life insurance product.
CommLink is a program combining investment and life insurance flexibility. With a unit linked single premium, your investment will be invested fund on fund. Your premium will be managed by several fund managers who will give you an optimum investment result and a wider diversifying investment risk.
CommLink Premier is another interesting bancassurance product. It is a perfect combination of insurance and investment in a balance way. With an easy payment method, which is only debited from your saving account, you and family would be able to plan your financial goal wisely.
For more information, please kindly contact Commonwealth Bank Call Center at (021) 7917 6000 or visit the nearest branch.
News Flash, March 20, 2009
Commonwealth Bank of Australia (CBA) Listed in ‘World’s 50 Safest Banks 2009’
and ’20 Best Australian Brands’
Commonwealth Bank has been ranked 12th on the Global Finance magazine mid-year update of its ‘Safest Banks’ listing. The “World’s 50 Safest Banks 2009” were selected through a comparison of the long-term credit ratings and total assets of the 500 largest banks around the world.
Ratings from Moody’s, Standard & Poor’s and Fitch were used. Global Finance publisher Joseph D. Giarraputo said, “The rating agencies have determined these banks have demonstrated a more prudent and sustainable approach to risk than their peers.”
At the same week, Interbrand, the world’s leading brand consultancy announced the ’20 Best Australian Brands, with Telstra and Commonwealth Bank being named as having Australia’s highest brand values. According to Interbrand, the Group achieved its 2nd placing because of its consistency in cross-selling and delivering the types of products customers want across a range of categories. An important criterion of Interbrand’s evaluation was the successful strategies put in place by companies to ensure continued success in the downturn.
Both rewards prove that CBA is in a very well & strong condition and also commit to grow the business in financial in Industry throughout the world.
News Flash February 13, 2009
Indonesia’s Economic Condition After Global Economic Crisis
FSII Note
Approaching the global crisis, Indonesia economic condition is in a strong position since 1998 crisis. Indonesia’s export prices and income per capita was raised. By the beginning of 2008, Indonesia’s unemployment and poverty rates also decreased until the lowest level since last 3 years.
When crisis hit the world by the end of 2008, world’s market fell down and also influence Indonesia’s investment market. Export revenue dropped off as the world’s commodity prices was fell. As the impact, Indonesia’s economic growth is slowing down and effected the manufacture industry and the raise of unemployment number.
Along with the fall of world’s oil price and its effect to oil price in Indonesia at early 2009, inflation rate was also slowing down. Economic specialist projected that this such condition may influence the commodity price during 2009, which will benefiting the poorer households in Indonesia.
Indonesia was among the last into the downturn, but could be among the first to recover. Commodity prices should recover some of recent losses when global growth resumes late 2009 and will support Indonesia’s investment and economic growth. Indonesia is also less exposed to lower consumer demand in the US post-recovery, and therefore has less impact to the export market in regards to that.
Government and MoF have proactively anticipated and responded to the crisis faster than authorities in many neighboring economics. They have taken prevention step in financial sector by cutting interest rates, liquidity injection, time-deposit insurance, sustain infrastructure investment spending, and many more.
For what government has done, we do not have to worry to start investing the long term investment in Indonesia’s market. Global economic crisis hit our country at our strong economic condition so that government has take preventive action before it even happening.
Let’s put aside our uncertainty and start investing.
News Flash January 5, 2009
2008 Investment Performance Flashback and Investment Opportunity & Strategy in 2009 - FSII Note
Below is the 2008 investment performance flashback and investment strategy for 2009.
Question (Q): How is the investment condition during 2008?
Answer (A): During 2008, we have experience a global economic crisis that was started off by subprime mortgage in USA and directly impact the stock market and at the end the world economic is weakening. World’s stock market performance was fall by more than 30% and followed by the fall of commodity prices as the effect from low demand as the effect from world economic condition. The commodity price reduction has made the expectation for world’s inflation for 2008 and 2009 is lower. Therefore it gave chances to the world’s central bank to reduce the interest rate in order to maintain one country’s economic performance.
Q: How does it effect to Indonesia’s stock market and economic condition?
A: Stock market is the first sector that is impacted from the global economic crisis. Stock market, exchange rate, and obligation performance has reduced by 50%, 20%, and 10%, which was majority caused by the high selling pressure from foreign investors. Its impact to the economic was raised on the 4th quarter of 2008, which the export performance, especially export to USA, was reduced. Other sectors such as consumers, financial, and industry still give positive contribution as stated on emitent’s quarter report in Indonesia.
Q: What makes the drop of stock market performance in Indonesia?
A: As stated above, Indonesia’s emitent performance is not as bad as other countries’ (e.g USA). But their stock prices was drop quite significantly. Global economic crisis made the investors divert their high-risk investment to the low-risk investment such as US Dollar. In summary, the decreasing of stock market performance is not because our fundamental factors, but more on sentiment. In our opinion, current stock market condition is quite interesting for investors, especially for those who has a long term vision so you can buy investment asset on ”low” price.
Q: How about investment prospect in 2009?
A: Global economic condition will still move slowly in 2009 and effected to real sector performance in Indonesia although will not as bad as in USA. Several industries will earn some advantages from this condition, since the drop of commodity prices will also drop the global interest rate. Obligation market, emitent in low-class consumer, infrastructure, and financial institution will receive positive impact and become interesting investment medium in 2009.
Q: What strategy will you recommend in investment sector on 2009?
A: As an investor, moreover if you have a long-term vision, we will recommend you to have a financial planning before investing and also to set your investment objectives. After setting the objectives, you may choose investment asset that suit your objectives and risk profile. You may also need to diverse your investment to different type of asset to reduce the investment risk. The other way to minimize the investment risk is through “dollar cost averaging”.
Q: As an investor, what should we do to face this condition?
A: Price has fluctuated during 2008 and has influenced an investor’s value and portfolio composition. Therefore, we will recommend to review your investment portfolio whether it is suit your investment objectives:
- If your investment portion is still small, we will recommend to add your portion during this condition
- If the portion is enough, then we will recommend not adding it.
- If your investment portion is too big, we will recommend to consider your investment objectives.
Q: Is trading during this condition will be recommended?
A: In theory, trading gives high return in a short term. However, the risk is also high. If you are good as “market timer”, high-discipline, own the mediums, you may use the price volatile through trading. For investor who doesn’t have those criteria, we will recommend you to be a long term investor. Because trading might reduce investment return because there will be transaction cost and high risk nowadays.
Q: Is ”switching” on this condition is recommended?
A: It depends on investor’s need. Every product has its own feature and objectives. So, you should look back on your objectives before you switch your investment. Since investment objective is for long-term, we may not let this condition (which might be occur only in a short term) change your long-term objectives.
Q: How to reduce investment risk in this condition?
A: Actually, market condition should not affect investment risk. But what may influence is how you plan your financial condition, such as:
- Has a long term objectives. Double interest concept will help investor to reduce investment allocation. Also, having a long term timing will help investor to face fluctuated market risk.
- Investment diversification. Every class of asset has it owns characteristics. Therefore, to have different class of asset or diverse you investment may reduce the investment risk.
- Regular investment. Regular investment also known as “dollar cost averaging”. It will not only reduce the investment risk, since you buy it in different prices, you will also make yourself discipline in investing, even during hard times.
- Evaluate your investment performance regularly, but not too often. Because it may influence your investment objectives. Our recommendation is to evaluate it every 6 months or 1 year. Because investment objectives will not change every day or every month.
Q: What is the meaning of ”double interest” concept?
A: Double interest concept is actually very simple and rarely implemented on our daily lives. A simple formula to know your investment term and interest rate per year needed in order to double investor’s money is using ”72 Formula”. To calculate them, 72 divided by investment term or interest per year. The result is the interest per year or investment term needed to double investor’s money. Example: If the investment term is 10 years, we will need approximately 7.2% interest per year or if interest rate per year is 20%, then you will need 3.6 years of investment term.
News Flash November 26, 2008
Commonwealth Bank of Australia Performance
Commonwealth Bank of Australia (CBA) Performance as reported in last week’s Annual General Meeting in Melbourne, half year results for 2008/2009 will be adversely impacted by significantly higher first half provisions. These are driven primarily by exposures to ’Lehman Brothers’, ’Allco Finance Group Limited’ and ’ABC Learning Centres Limited’. There is no evidence of systemic credit issues, and overall credit quality in the Group’s consumer and commercial books remains sound.
Despite current challenging market conditions worldwide, the underlying business performance of the Commonwealth Bank of Australia (”the Group”) remains strong.
The Group:
- Continues to hold an AA international credit rating – one of only 20 banks worldwide to do so
- Holds a very healthy AUD $66 billion in liquid assets
- Holds a 30% market share in household deposits, more than double its next Australian competitor
- Has had the strongest deposit balance growth during the past 12 months of all the Australian banks at 34%
- Has continued to increase its home loan market share in 18 consecutive months
- Has a tier 1 capital ratio of 7.5% (FSA equivalent of 11%), the highest of our Australian competitors and of most European banks
The Group continues to maintain a cautious approach in the current environment, with emphasis on maintaining strong capital, funding and liquidity positions.
While the Australian economy has been relatively resilient, domestic economic activity is slowing, but despite the slowdown, CBA Chairman John Schubert has reassured the market that CBA is outperforming its major peers in financial performance and will continue to do so.
Commonwealth Life Corporate Update
Click on below file to see Commonwealth Life and Commonwealth Bank of Australia's strength and performance in facing the global economic condition.
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News Flash Oktober 13, 2008
Trading on Indonesia Stock Exhange (IDX) resumed today, 13 October 2008. Investra’s unit price for today, 13 October 2008, will be calculated on Tuesday, 14 October 2008 and will be published on Commonwealth Life’s website as well as in the media on Wednesday, 15 October 2008.
News Flash Oktober 9, 2008
Q&A IDX Trading Suspension and its effects to Commonwealth Life
- Why did Indonesia Stock Exchange (IDX) suspend its stock transactions?
On 8 October 2008, the IDX composite index fell more than 10%. Suspension of trading is allowed under IDX operational procedures in order to minimize stock price fallout in extreme situations. So basically, this intervention was positive for the current market.
- How long will this condition occur?
The suspension policy is subject to government decision. We will update you regularly regarding this condition which has occurred only once previously - when IDX was subject to terrorist attack in September 2000. Suspension is never expected to last for much more than a couple of days.
- As an Investra product owner, what should I do?
To know what you should do, please review your risk profile and investment goal. Because Investra is a long-term investment, it would be wise for you to consider maintaining your investment for the future.
- When trading has been suspended, can I still withdraw, redeem, switch, top up, redirect, or reinstate my policy?
When IDX has suspended trading, we are unable to process any of the above-mentioned requests. The simple reason for this is that there are no available unit prices. However, any such requests received will be processed as soon as trading resumes.
- If I buy Investra while trading is suspended, will I still be covered under the policy?
Your life cover will commence when your policy is issued, because basically your life cover and investment are separate matters.
- Under this condition, what should I do for my policy renewal?
Your policy renewal should not be affected by this situation because you need to renew your policy to keep your cover. The transactions involving unit prices will be processed after IDX has resumed trading.
Statement First State Investment 8 October 2008
Statement First State Investment 9 October 2008
Announcement Indonesia Stock Exchange
Insurance Business Competition in 2010