by Jet Villamor
Take a closer look at the first energy-centric investment fund which might just be able to help you in this changing financial environment.
Let us take a look at the current situation. What market opportunity is there for the picking?
The reality is, cheap oil resource is becoming scarce.
Oil is the world’s premiere source of energy and is fundamental to almost every important aspect of modern life. In the so many years man has been using this non-renewable energy source, experts say that we are currently in the Peak Oil phenomenon already.
What do we mean by Peak Oil? During the 1950’s, a man by the name of Marion King Hubbert, a geoscientist of Shell Oil, predicted that the US’s oil production would peak between 1965-1970. After this period, rate of production would terminally decline until the sources of oil are depleted. His prediction was generally correct when US’s production peaked in 1970/71. (You might just look for Peak Oil Phenomenon yourself in the internet for the graphs and other data).
The question now is: Is the Peak Oil phenomenon happening in the whole world? While US may have nearly exhausted their resource, what about the Middle East countries? According to researchers, since the mid-1980s, oil companies have been finding less oil than we have been consuming. Of the 65 largest oil producing countries in the world, up to 54 have passed their peak of production and are now in decline, (including the USA in 1970, Indonesia in 1997, the UK in 1999, Australia in 2000, Norway in 2001, and Mexico in 2004).
Clearly now, the source of oil is constantly declining, but demand for oil is not diminishing. With the diminishing sources of oil, the world’s population is constantly rising, this alone poses a threat to the supply and demand chain (because people use energy to cook food, they need light to do their daily activities, they ride cars, etc.), we can conclude that the need for oil moves in the opposite direction of decline.
As oil production dwindles, and economic dependency on oil remains, its price will continue to rise to balance the economic model of supply and demand.
And as the price increases, companies in this industry are expected to generate high income.
While the opportunity presented by the conventional source of energy is very potent, the potential growth of alternative energy is definitely inevitable. Interest in solar, wind and other energy sources is on the rise. While current research on these options are deemed expensive for some companies to pursue, persistent studies and discoveries will provide cheaper means of materializing the alternative energy sources in the future.
The entire world needs energy to mobilize its economies! Imagine how life will be without energy.
Having said that, I’ve laid down the reasons why seriously considering an investment in the energy sector is a good strategy today. Energize your dollar returns through allocating your funds strategically in global energy!
Insular Life provides you with the unique opportunity to increase your dollar assets through Insular Life I-Dollar Energy 5. I-Dollar Energy 5 is a single premium investment-linked insurance product which protects your principal investment while providing you the potential of attractive returns through the performance of a basket of global energy indices. As research progress and new opportunities emerge, today is an opportune time to invest in the stocks of these companies as they brace for the next industry innovation.
Consider the advantages of I-Dollar Energy 5:
Capital Protection
While you aim for greater gains, you are sure to get back your initial investment on maturity, 5 years after you’ve invested. The fund is invested in a Structured Note issued by a global investment-grade bank. This Structured Note is linked to the Republic of the Philippines (ROP) credit. As such, principal investment is protected in the absence of a credit event on the Issuer of the Note and the ROP.
Upside Potential, A Boost on Your Returns
The product is exposed to global energy indices represented by the Energy Select Sector and Powershares Wilderhill Clean Energy Portfolio. The performance of these indices will define the rate of return to be paid on your principal at maturity date. To boost your returns, embedded in the product is the “best of look back” feature which excludes the lowest four quarterly performances in computing your yields.
Life Insurance Protection
True to our calling of providing thorough risk management, this product provides added financial security when your family needs it the most. I-Dollar Energy 5 comes with life insurance coverage equal to 125% of the single premium or the fund value, whichever is higher.
This product is available for a limited period only. Insular Life is offering this product only from October 18, 2010 up to November 8, 2010.
Opportunities like these do not come all the time. Take part and invest in the first-ever energy-based investment asset to be offered in the country!
(for questions, comments, suggestions and reactions email @ jvvillamor@insular.com.ph)
