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Hi LionInvestor,
Need your advise on this. In 1997, I purchased a 15 years saving endowment from a finanical institution in Singapore. [from Canada] It is the CPF Enhanced Investment Scheme [EIF]. Few weeks ago, the policy matured and there is a shortfall of $25k i.e. $25k less than what was shown in the Benefits Illustration table in 1997. I fully understand there is a non-Guarantee component but to have a deviation of $25k seems fishy. I checked the company performance since 1997 and they have been doing well until 2010 which showed a hugh loss.
I have spoken to the company’s customer service last week and presently waiting for their reply. Do you think I should just forget it and let it go?
ReplyDear Kenneth,
I don’t think there is much you can do. The non-guaranteed components are all projections based on the performance of the underlying investments. You shouldn’t be checking the performance of the company, but the performance for the par funds that your endowment is vested in.
There should be a yearly bonus (which is declared every year) as well as a terminal bonus. If you track the yearly bonus and compare it to the projections, you should roughly know whether your endowment was on track to meet the projections.
ReplyKeep up with your blogging. I enjoyed reading them. So informational. Most importantly, my questions gets answered.
This is my favorite blog ๐
ReplyTime really flies Martin! Love readin your blog for the latest financial updates and it is very educating for me as well. Three cheers for you to keep it up!
ReplyShades of TR? I hope you didn’t get a nice letter from the Lion-head company asking you to change your website name. Some people are rather sensitive about their 100yr-old mascot.
For those curious why “lion” is so big deal to these companies:-
LGI used to be OCBC Asset Mgmt. The bank hived off its asset mgmt arm to the lion-head insurer in 2006, in which it also has majority share ownership and historical links. Hence the “lion” in LGI.
Just realised that TR have changed their name to TR Emeritus. ๐
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