If you have bought Life insurance policies, which participate in the performance of the Life Participating Funds in the form of bonuses, it will be interesting to note the performances of these funds by three big Life insurers, namely Great Eastern Life (GE), NTUC Income and Prudential.
The investment returns for Prudential’s, Great Eastern Life’s, NTUC Income’s funds were 7.2%, 6.58% and 5.9% respectively. Last year (2010) was a return to somewhat stable environment compared to 2009 when the investing community was recovering from the global financial crisis. The 2010 returns were indicative of normal time.
The market value of total assets for NTUC Income was $21.3 billion and for Great Eastern Life was $17.7 billion. The market size of Regular Premium Life Sub-Fund of Prudential was $7.9 billion.
The asset mix for the funds was:
Assets NTUC Income GE Life Prudential
Equity 29% 26% 30%
Bonds 56% 46% 53%
Loans 4% 10% – –
The insurance companies were mandated to grow the Life Participating Funds with minimum risk-taking. In this regard, the investment returns were conservative at 7.2%, 6.58% and 5.9%. Even with professionals investing on behalf of the funds, the return could not have gone above single-digit investment return. Therefore it is even harder for small time investors to achieve double-digit investment return. That is the investment environment we are in.
Copyright © 2011, limkimtong for Living Investment
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