Central Provident Fund Investment Scheme-Included Funds Delivered 5.10% on Average in Q1 2017

SINGAPORE, May 31, 2017 – 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 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 31 March 2017.

In Q1 2017, the overall performance of CPFIS-included funds rose 5.10% on average. Specifically, CPFIS-included unit trusts increased 5.20% and CPFIS-included ILPs rose 5.04%. For all CPFIS-included funds, equities posted positive returns of 6.44%, mixed-asset 4.10%, bonds 1.27% and money market funds 0.19%. During the same period, MSCI AC Asia ex-Japan index rallied 9.68% while Citigroup WGBI TR fell 1.78%.

For the one year since March 2016, the overall performance of CPFIS-included funds posted a positive return of 14.17% on average. CPFIS-included unit trusts rallied 15.80% on the year and CPFIS-included ILPs soared 13.16%. For the one-year period, equities (+18.55%) outperformed bonds (+1.16%), mixed-asset (+10.66%) and money market funds (+0.64%) on average. Meanwhile, MSCI AC Asia ex Japan Index soared 22.25%, whereas Citigroup WGBI TR fell 0.03%.

From March 2014 through to March 2017, CPFIS-included funds reported a strong growth of 17.11% on average, accounted for by a gain of 18.71% from CPFIS-included unit trusts and 16.27% from CPFIS-included ILPs. Equities were the lead gainer with growth of 20.11%, while the money market portfolio posted 1.52%. During this period, MSCI AC Asia ex-Japan Index rallied 28.49% and Citigroup WGBI TR rose 7.16%.

Xav Feng, Head of Asia Pacific Research, Thomson Reuters Lipper, commented, “CPFIS funds delivered strong returns in the first quarter of 2017. On a macro-level, reflation is a key global trend and growth expectations are gradually on the rise, while geopolitical tensions continue to impact financial markets. With the US becoming more of a driver of policy uncertainty than a stabilizer, China and emerging markets are gaining significant traction. Looking ahead, investors are advised to sift through copious amounts of data and news to identify solid investment opportunities and to maintain a diversified portfolio.”