Returns on Life Insurance Participating Fund 2015 (All Four, Aviva included)

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 %)

2015 2014 2013 2012 2011 2010
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
Prudential * 0.20 5.90 5.20 11.00 0.20 7.20
Aviva + – 0.53 5.42 0.19 9.35 1.30 6.63

Note:
* 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
Equities 26% 24% 33.3% 20%
Bonds/Fixed Income 53% 67% 50.5% 55%
Properties 12% 4% 7.5% 9%
Cash & Equivalent 5% 2% Not available 11%
Others 4% 3% 8.7% 5%
Investment Return 2.24% 1.79% 0.20% -0.53%

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.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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2 Responses to Returns on Life Insurance Participating Fund 2015 (All Four, Aviva included)

  1. Katrina Karim says:

    Warm greetings limkimtong. I was wondering if SingSaver.com.sg can contribute blog articles to your awesome site? Thank you so much, Kat.

    KATRINA KARIM
    VICE PRESIDENT, COMMUNICATIONS
    SingSaver.com.sg Ι Singapore’s #1 financial comparison platform
    A part of the CompareAsiaGroup Ι Asia’s #1 financial comparison platform
    Mobile +65 9844 6618 Ι Email katrina.karim@singsaver.com.sg Ι Skype katrinakarim1 Ι LinkedIn http://bit.ly/1nJ2Nxg

    • limkimtong says:

      Thank you Kat for your comment and question. Living Investment is a blog with no input, contributions or endorsements from others, and it wants to remain so.

      I thank you for your interest.

      Best Regards.

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