Higher risk profile of new bonus structure

Dear Mr. Tan

I attend the annual general meeting of Income. I am quite confused with the statments made by several people in the panel. They said that the bonus restructuring will allow Income to give a better return, compared to the old bonus structure. They also said Income can invest more in equity,but it will not increase the risk profile. How is this possible?

I looked at the table of the asset allocation of the life companies shown in your blog. It seems that companies with high capital adequacy ratios, such as AIA, show have low allocation to equities.

REPLY
I am also quite confused with the statements. The new bonus structure allows Income to invest in a higher proportion in equities to earn a higher yield. I am not sure if this is their intention. This will certainly increase the risk profile.