November 29, 2017

Central Provident Fund Investment Scheme Included Funds Delivered 2.70% On Average in Q3 2017

Singapore – Thomson Reuters Lipper 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 September 2017.

In Q3 2017, the overall performance of CPFIS-included funds rose 2.70% on average, a positive and encouraging development for investors. Specifically, CPFIS-included unit trusts increased 3.06% and CPFIS-included ILPs rose 2.49%. For all CPFIS-included funds, equities and mixed asset posted positive returns of 3.50% and 2.23%, while bonds and money market funds grew 0.33% and 0.15%. During the same period, MSCI AC Asia ex-Japan index rallied 5.28% and Citigroup WGBI TR rose 0.42%.

For the one-year period ended September 2017, the overall performance of CPFIS-included funds posted a positive return of 13.14% on average. CPFIS-included unit trusts rallied 14.76% on the year and CPFIS-included ILPs soared 12.19%. Meanwhile, benchmark MSCI AC Asia ex Japan Index soared 22.53% while Citigroup WGBI TR fell 3.08%. For the one-year period, on average, equities (+17.57%) outperformed bond offerings (+0.08%), mixed-asset (+10.13%) and money market funds (+0.57%).

For the three-year period ended September 2017, CPFIS-included funds soared 19.25% on average, accounted for by a gain of 19.90% from CPFIS-included unit trusts and 18.93% from CPFIS-included ILPs. During this period, MSCI AC Asia ex-Japan Index rallied 34.86% and Citigroup WGBI TR rose 9.32%. Equities were the lead gainer with growth of 23.30%, while bond portfolio posted 8.55% return on average.

Xav Feng, Head of Asia Pacific Research, Thomson Reuters Lipper, commented, “CPFIS funds experienced robust performance in the third quarter of 2017. Current volatility remains low but headwinds are expected by market participants around the world. In the U.S., Jerome Powell has been appointed as the Chairman of the Federal Reserve. Tax reform remains the center piece subject leading to investor optimism, but caution is still seen from large financial institutions. In China, after the 19th CPC National Congress, President Xi Jinping outlined his ‘China Dream’ of renewed national wealth and heralds a ‘new era’ of Chinese power. In light of these developments, investors are advised to stay on top of global geopolitical events and remain cautious.”

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

  Average of CPFIS-included
unit trusts & ILPs
CPFIS-included unit trusts CPFIS-included ILPs
3-month period ended September 2017 2.70% 3.06% 2.49%
12-month period ended September 2017 13.14% 14.76% 12.19%
36-month period ended September 2017 19.25% 19.90% 18.93%

Source: Thomson Reuters Lipper 

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. 

Thomson Reuters Lipper

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