Commercial mortgage investments held by life insurance companies returned 7.48 percent in 2012.
In a release dated
Income contributed 1.39 percent and price contributed 0.46 percent in fourth quarter. Price performance benefitted from tighter mortgage spreads that outweighed the negative effect of higher Treasury yields. Yields on 10-year Treasurys increased 13 basis points over the quarter to 1.78 percent, and yields on five-year maturities increased 10 basis points to 0.72 percent.
For the 12-month period, income contributed 5.64 percent and price added 1.84 percent with annual performance benefitting primarily from mortgage spread tightening, and to a lesser extent, lower Treasury yields. Treasury yields on both five-year and ten- year maturities fell 11 basis points over the year.
Of the four major property types, apartments performed best over 12 months with a total return of 7.94 percent compared to 7.48 percent for retail, 7.18 percent for office, and 6.87 percent for industrial.
Participating life insurers include
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