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It is the time of the year when insurance companies declare the results for their participating fund. Here is the report card for AIA Singapore.

Straight to the Point

All in all, all policies will receive bonus and dividend at the same scale as the previous year. In effect, the policyholders will receive S$527 million in participating fund bonuses. Once declared, the annual bonuses and dividends will be credited to the policy at the next policy anniversary.

Investment Performance

Global equities (as measured by MSCI World Index) plunged 11% because of correction in the equity markets. Additionally, the US-China trade dispute and US monetary tightening stirred up concern among investors. One of the commonly asked question was,

With the imposed tariff between US and China, how will it impact the global growth?

On the other hand, 10-year US Treasury ended the year with a positive yield at 2.69%. This result came despite high volatility in the bond yields.

The Forecast

Without a clear indication of any improvement in earnings revision, bonds and equities may continue to show a lustre performance. Let’s hope that the US-China trade deal could provide a stimulus to the global economy and lift the performance of the bonds and equities.

Share Your Thoughts 💭

1️⃣ Was the declared bonuses and dividends expected?

2️⃣ How was your portfolio’s performance in the past year?

3️⃣ What is your outlook on the market this year?

Reference for this article has been made with the following source:

AIA Participating Fund Update for 2018

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