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February 27, 2019

Central Provident Fund Investment Scheme-included funds achieved 11.94% growth on average for the three-year period

Singapore – Refinitiv’s 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 December 2018.

There were 85 unit trusts and 156 ILPs included under the CPFIS, for a total of 241 funds as of 31 December 2018. The overall performance of CPFIS-included funds posted negative returns of 7.45% on average in Q4 2018, given negative returns of 8.74% and 6.69% respectively among CPFIS-included unit trusts and CPFIS-included ILPs. By asset class, across all CPFIS-included funds, equity and mixed-asset funds posted negative return of 10.19% and 5.84% respectively, while bond and money market funds achieved positive returns of 1.43% and 0.35% respectively. During the same period, the key benchmark MSCI World TR USD and MSCI AC Asia ex Japan plunged 13.52% and 8.83%, respectively, while FTSE World Government Bond Index rose 1.5%.

For the one-year period, the overall performance of CPFIS-included funds posted a negative return of 7.91% on average, while CPFIS-included unit trusts and CPFIS-included ILPs slid 9.0% and 7.27% respectively on the year. During the same period, MSCI World TR USD plunged 6.38% and MSCI AC Asia ex Japan Index slid 12.41%, while the FTSE WGBI TR rose 1.13%. In 2018, money market (+1.14%) fund outperformed the bond (+0.27% on average), equity (-10.49% on average) and mixed-asset (-6.40% on average) fund offering.

For the three-year period, CPFIS-included funds achieved 11.94% growth on average, accounted for a gain of 12.39% on average from CPFIS-included unit trusts and 11.67% from CPFIS-included ILPs. During this period, MSCI World TR USD and MSCI AC Asia ex Japan Index rallied 17.40% and 23.99% respectively, while FTSE World Government Bond Index achieved 4.05%. Equities were the lead gainer with growth of 13.92%, while bonds posted 6.23% return on average for the period.

Xav Feng, Head of Asia Pacific Research, Lipper at Refinitiv, commented, “In the fourth quarter of 2018, market fluctuations continued, leading to a plunge in the majority of global equity markets, although the U.S Fed declared that economic activity has been rising at a solid pace. However the Fed was also ready to alter the current run-off of its balance sheet. Meanwhile, the U.S. and China are trying to suspend punitive tariffs and make promises on other issues before the trade war truce ends on 1 March, but no deal has been reached so far. Therefore investors should continue watching out for further progress and potential market volatility.”

Performance of CPFIS-included unit trusts and ILPs during the 3, 12 and 36 month periods ending December 2018:

  Average of CPFIS-included unit trusts & ILPs
CPFIS-included unit trusts
CPFIS-included ILPs
3-month period ended December 2018
-7.45%
-8.74%
-6.69%
12-month period ended December 2018
-7.91%
-9.0%
-7.27%
36-month period ended December 2018
11.94%
12.39%
11.67%

Source: 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.

About Lipper

Lipper is a global leader in supplying mutual fund information, analytical tools, and commentary. Lipper's benchmarking and classifications are widely recognized as the industry standard by asset managers, fund companies and financial intermediaries. Our reliable fund data, fund awards designations and ratings information provide valued insight to advisors, media and individual investors. For more information, visit http://lipperalpha.financial.thomsonreuters.com/

Refinitiv is the former Financial & Risk business of Thomson Reuters following the closing of the partnership deal between Thomson Reuters and private equity funds managed by Blackstone on 1 October 2018.

About Refinitiv

Refinitiv is one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in approximately 190 countries. It provides leading data and insights, trading platforms, and open data and technology platforms that connect a thriving global financial markets community - driving performance in trading, investment, wealth management, regulatory compliance, market data management, enterprise risk and fighting financial crime. 

Contacts

Silke Marsh
Director, Regional Communications, Asia Pacific
+61 404 763 797
silke.marsh@refinitiv.com

Boni Liu
Senior Business Communications Executive, Refinitiv
+852 9358 8779
Boni.liu@refinitiv.com