June 3, 2019
Central Provident Fund Investment Scheme-included funds posted positive returns of 7.82% on average in Q1 2019
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) for the three months ended March 31, 2019.
In Q1 2019, the overall performance of CPFIS-included funds increased 7.82% on average. Specifically, CPFIS-included unit trusts increased 8.48% and CPFIS-included ILPs rose 7.34%. By asset class, across all CPFIS-included funds, equity, mixed-asset funds, bond and money market funds posted positive return of 9.85%, 6.46%, 1.59% and 0.36% respectively. During the same period, MSCI World TR USD and MSCI AC Asia ex Japan rallied 11.94% and 10.75% respectively, while FTSE WGBI Index rose 1.11%.
For the one-year period, the overall performance of CPFIS-included funds posted a slightly positive return of 0.80% on average. CPFIS-included unit trusts rose 0.41% on the year and CPFIS-included ILPs soared 0.91%. Meanwhile, the key benchmark MSCI World TR USD climbed 8.05%, while MSCI AC Asia ex Japan Index fell 1.81%. For the same period, bond (+2.71%) fund outperformed the mixed-asset (+1.37%) and money market (+1.28%) fund offering.
For the three-year period, CPFIS-included funds achieved 25.06% growth on average, accounted for a gain of 26.86% from CPFIS-included unit trusts and 23.78% from CPFIS-included ILPs. During the same period, MSCI World TR USD and MSCI AC Asia ex Japan Index rallied 38.71% and 42.11% respectively. Equity type was the lead gainer with growth of 31.97% and bond portfolio also posted positive return of 5.13% on average.
Xav Feng, Head of Asia Pacific Research, Lipper at Refinitiv, commented, “CPFIS funds achieved encouraging returns given the US and global markets’ rebound in the first quarter of 2019. The US Federal Reserve has kept interest rates on hold despite pressure from President Donald Trump. Meanwhile the trade deal between US and China is expected to include renewed commitments from China to strengthen its protection of intellectual property and provide greater access to Chinese markets. However, it’s still a big uncertainty before two sides come to a conclusion. We believe that the US Fed’s monetary policy and the trade war between US and China will continue to be key factors influencing the global market.”
Performance of CPFIS-included unit trusts and ILPs during the 3, 12 and 36 month periods ending March 2019:
|Average of CPFIS-included unit trusts & ILPs
||CPFIS-included unit trusts
|3-month period ended March 2019
|1 year period ended March 2019
|3 years period ended March 2019 (Cumulative)
|3 years period ended March 2019 (Annualized)
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.
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.refinitiv.com/.
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.