2015 was a difficult year for investments. Aviva’s performance was the worst when compared with the other insurers. The investment return was -0.53%. See table below for the comparisons.
Investment Returns (in %)
|Great Eastern Life||2.24||7.08||3.62||9.76||1.54||6.58|
|NTUC Income||1.79||5.45||1.63||8.56||– 0.88||5.90|
|Aviva +||– 0.53||5.42||0.19||9.35||1.30||6.63|
* Figures for Prudential Assurance are for Singapore dollar products. It also has US dollar product with investment return of -3.9% (2014: 8.2%).
+ Figures for Aviva are for Participating Sub-Fund 2.
The following table shows the asset mix of the Participating Funds.
|Asset Mix of Participating Fund|
|Asset Type||GEL||NTUC Income||Prudential||Aviva|
|Cash & Equivalent||5%||2%||Not available||11%|
There is no distinctive reason why one fund did better than another. One would have thought that equities are more volatile than fixed income instruments. This may explain the poor showing of Prudential when equities were hit in 2015. But Aviva was not in sync with the other insurers. NTUC Income was more conservative with more allocation into fixed income than the rest. Its return on investment was in between Great Eastern Life and the rest. Great Eastern Life had the highest allocation into properties and perhaps this helped in the better performance compared to the rest. Aviva had 11% in cash, deposits and money market securities that was the highest amongst the insurers. This kind of allocation does not yield high returns but it is less risky.
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