Under the Insurance Act 1996, which governs all those doing insurance businesses in the country, there is a schedule that spells out how the funds are to be invested.
|1||Low risk asset||20%||No||No limit for Cash and Deposits|
|2||Share||No||30%||For each individual investment, max 5% of the investee company's equity|
|4||Equity and Property trusts||No||10%||For each individual investment, max 5% of the total issue of the trust fund.|
|5||Policy loan||No||20%||Usually charge to borrower (i.e. policyholders) at 7%-8%|
|6||Secured and unsecured facilities||No||40%||Max 5% for any one borrower or group of borrowers|
|7||Zero coupon bonds||No||No|
- For low-risk assets, the life insurance fund can invest in the aggregate a minimum of 20 per cent with no maximum limit, while for cash and deposits there is no limit.
- For shares there is a maximum limit of 30 per cent in the aggregate, and for each individual investment there is a maximum limit of five per cent of the investee company’s equity.
- For immovable properties, the maximum limit in the aggregate is 20 per cent, and for equity and property trusts 10 per cent in aggregate but for individual investment, it is five per cent of the total issue of the trust fund.
- For policy loans there is a maximum limit of 20 per cent in aggregate, and for secured and unsecured credit facilities, the limit is 40 per cent in aggregate and five per cent for any one borrower or group of borrowers. There is no limit for zero coupon bonds.
HLA's Par Fund performance 2012 ~ 2016