August 30, 2017

Central Provident Fund Investment Scheme-included funds delivered 3.40% on average in Q2 2017

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 30 June 2017.

In Q2 2017, the overall performance of CPFIS-included funds rose 3.40% on average. Specifically, CPFIS-included unit trusts increased 3.26% and CPFIS-included ILPs rose 3.47%. For all CPFIS-included funds, equities posted positive returns of 4.14%, mixed-asset 2.99%, bonds 1.18% and money market funds 0.15%. During the same period, MSCI AC Asia ex-Japan index rallied 6.81% and Citigroup WGBI rose 1.39%.

For the one year period since June 2016, the overall performance of CPFIS-included funds posted a positive return of 17.22% on average. CPFIS-included unit trusts rallied 19.21% on the year and CPFIS-included ILPs soared 16.01%. For the one-year period, equities (+22.77%) outperformed bonds (+0.99%), mixed-asset (+13.02%) and money market funds (+0.60%) on average. During the same period, MSCI AC Asia ex-Japan index soared 29.98% while Citigroup WGBI fell 1.93%.

In terms of the three-year returns, ended June 2017, CPFIS-included funds reported a strong growth of 16.91% on average, accounted for by a gain of 17.97% from CPFIS-included unit trusts and 16.39% from CPFIS-included ILPs. Equities were the lead gainer with growth of 20.04% while bond funds posted 8.91% on average for the period. MSCI AC Asia ex Japan Index rallied 29.02% and Citigroup WGBI TR rose 7.17%.

Xav Feng, Head of Asia Pacific Research, Thomson Reuters Lipper, commented, “CPFIS funds posted solid returns in the first half of 2017. Strong growth in Europe and robust export and consumption figures in Asia helped fuel positive investor sentiment. Investors should watch out for higher volatility resulting from the development of global geopolitical tensions.”

Performance of CPFIS-included unit trusts and ILPs during the 3, 12 and 36 month periods ending June 2017:

  Average of CPFIS-included unit trusts & ILPs CPFIS-included unit trusts CPFIS-included ILPs
3-month period ended June 2017 3.40% 3.26% 3.47%
12-month period ended June 2017 17.22% 19.21% 16.01%
36-month period ended June 2017 16.91% 17.97% 16.39%

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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