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2012 INVESTMENT PERFORMANCE STUDY

 

ActuarialExponents, Inc. has come up with another survey that it intends to do on annual basis to provide clients with additional basis for comparison for actual returns on retirement funds as well as the mix of investments.

 

This year's study covers the years 2010 and 2011. In 2010, the study involved P 3.5 Billion in retirement funds under trust from 30 companies. In 2011, it covered P 4.0 Billion of retirement funds from 37 companies.

 

The survey shows that retirement fund assets were mostly invested in government bonds and other fixed income securities (77% in 2010 and 63% in 2011). In 2011, there was some shift towards short-term deposits (due to the high interest rate of special savings deposit compared to the short-term government bonds) and to equities and mutual funds (most probably due to the positive stock market outlook and the continuous decline in the yield of government bonds). 

 

Large funds give higher allocation to equities while small funds stick to government securities and short-term deposits.

 

The overall average estimated rates of return on retirement funds, net of trusteeship / investment management fee, are 10.8% in 2010 and 8.7% in 2011. These rates are based on market valuation of fund assets. 

 

The survey shows comprehensive statistics on asset allocation and actual rate of return (based on simple and weighted averaging) as well as benchmark rates.

 

Soft copies of the survey will soon be released to clients and participants. Hard copy of the survey will be included in the actuarial valuation reports provided by ActuarialExponents.