Returns on Life Insurance Participating Fund 2016

Investments in 2016 were better than 2015. All four insurers achieved positive investment returns. See table below for the comparisons.

Investment return for Prudential was the highest at 8.30% for its Singapore dollar fund. (US $ fund was 9.70%) Aviva moved from negative return to positive in 2016 (4.30%). NTUC Income had 4.49% investment return. Great Eastern Life had the lowest investment return among the four insurers at 3.81%.

Investment Returns (in %)

2016 2015 2014 2013 2012 2011
Great Eastern Life 3.81 2.24 7.08 3.62 9.76 1.54
NTUC Income 4.49 1.79 5.45 1.63 8.56 – 0.88
Prudential * 8.30 0.20 5.90 5.20 11.00 0.20
Aviva + 4.30 – 0.53 5.42 0.19 9.35 1.30

Note:
* Figures for Prudential Assurance are for Singapore dollar products. It also has US dollar product with investment return of 9.7% (2015: -3.9%).
+ 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 27% 25% 44.3% 23%
Bonds/Fixed Income 56% 66% 39.8% 63%
Properties 10% 4% 7.2% 8%
Cash & Equivalent 4% 2% Not available 6%
Others 3% 3% 8.7% 0%
Investment Return 3.81% 4.49% 8.30% 4.30%

In terms of asset mix for participating funds, Prudential had the highest allocation to equities (44.3%) as compared to the rest. With overseas equities performing well towards the end of 2016, Prudential with higher allocation in equities naturally did better than the more conservative other insurers (with more allocations to bonds and fixed income instruments).

The investment returns of 3.5% to 4.5% per year seem a reasonable performance in 2016.

Copyright © 2017, 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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