May 26, 2016

Central Provident Fund Investment Scheme-Included Funds Slid 3.26% in Q1 2016

Singapore – Thomson Reuters Lipper today announced its findings on the performance of all unit trusts and investment-linked insurance products (ILPs) that are included under the Central Provident Fund Investment Scheme (CPFIS) as of 31 March 2016.

In the first quarter of 2016, the overall performance of CPFIS-included funds posted negative returns of 3.26% on average, in which CPFIS-included unit trusts declined by 3.80% and CPFIS-included ILPs fell 2.90%. For all CPFIS-included funds, equities and mixed-asset posted negative returns of 5.02% and 1.89%, while bonds and money market funds posted positive returns of 2.53% and 0.22%. During the same period, MSCI AC Asia ex-Japan index slid 3.36%, while Citigroup WGBI soared 1.65%.

For the 1 year since March 2015, the overall performance of CPFIS-included funds declined 7.98% on average. CPFIS-included unit trusts slid 8.45% on the year and CPFIS-included ILPs fell 7.72% on average. Meanwhile, Citigroup WGBI TR rallied 3.99%, while key benchmark MSCI AC Asia ex Japan Index slid 13.21%. For the one-year period, bond offerings (+2.84% on average) outperformed equities (-11.61% on average), mixed-asset (-5.59% on average) and money market funds (+0.74% on average).

From March 2013 till March 2016, CPFIS-included funds reported a strong growth of 9.92% on average, accounted for by a gain of 10.59% on average from CPFIS-included unit trusts and 9.54% on average from CPFIS-included ILPs. During the same period, MSCI AC Asia ex-Japan Index soared 9.80% and Citigroup WGBI TR rose 10.15%. Equities were the lead gainer with growth of 11.43%, while money market portfolio posted 1.28% on average.

Performance of CPFIS-included unit trusts and ILPs during the 3-, 12- and 36- month periods ending March 2016:


Average of CPFIS-included unit trusts & ILPs

CPFIS-included unit trusts

CPFIS-included ILPs

3-month period ended March 2016




12-month period ended March 2016




36-month period ended March 2016




Source: Thomson Reuters Lipper

Xav Feng, Head of Asia Pacific Research, Thomson Reuters Lipper, commented, “2016 kicked off with a volatile start, with risk markets experiencing sharp drawdowns to mid February, followed by a strong rally. Market expectations of U.S. Federal Reserve’s monetary policy have became more sensitive due to speculation over faltering global growth and mixed U.S. economic data. China’s growth slowdown continues to impact global financial markets, as evidenced in falling imports and exports. Seesawing commodity prices, Bank of Japan’s negative interest monetary policy and whether European Central Bank’s quantitative easing has reached its limit of effectiveness all contribute to an uncertain economic outlook. In light of continued market volatility, investors are advised to remain cautious but opportunities may arise.”

The Investment Management Association of Singapore (IMAS) and Life Insurance Association of Singapore (LIAS) have appointed Lipper to monitor the performance of all unit trusts and investment-linked insurance products included under the Central Provident Fund Investment Scheme (CPFIS).

Notes to the Editor:

Information provided by Lipper has been obtained from or is based upon sources believed to be reliable but is not warranted to be accurate or complete. Lipper does not make any representation or warranty, express or implied, to investors or any member of the public regarding the advisability of investing in securities generally or in any product or mutual fund particularly. Past performance is not necessarily a guide to future performance and investors should remember that past performance is not a guarantee of future results. 

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