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June 30, 2020

Refinitiv Lipper reports that Central Provident Fund Investment Scheme-Included funds post negative returns of 12.96% on average in Q1 2020

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 March 31, 2020.

In the first quarter of 2020, the overall performance of CPFIS-included funds slumped 12.96% on average, with negative return of 15.04% and 11.61% recorded for CPFIS-included unit trusts and CPFIS-included ILPs respectively. Divergent performances were seen for different asset classes. Bond and Money Market funds grew by 0.83% and 0.30% respectively while Equity and Mixed Asset funds posted negative return of 17.74% and 9.89%. Meanwhile, benchmark indexes such as MSCI World TR USD and MSCI AC Asia ex Japan Index slid 16.27% and 13.55%, respectively while FTSE WGBI Index rallied 8.01% for Q1 2020.

For the one-year period, the overall performance of CPFIS-included funds fell by 7.30% on average. CPFIS-included unit trusts dropped by 9.34% on the year, while CPFIS-included ILPs slid 5.99% on average. During the same period, the key benchmark MSCI World TR USD and MSCI AC Asia ex Japan Index plunged 5.26% and 8.73% respectively, while FTSE WGBI TR rallied 11.60% for the period. Bond (+4.92%) fund outperformed money market (+1.39%), Equity (-11.65%), and mixed-asset (-3.98%) fund offering.

For the three-year period, CPFIS-included funds grew 1.23% on average, accounted for a negative return of 0.91% from CPFIS-included unit trusts and positive return of 2.57% on average from CPFIS-included ILPs. During the same period, the FTSE WGBI TR gained 15.52%, while the MSCI World TR USD and MSCI AC Asia ex Japan Index rallied 9.72% and 6.09% respectively. Bond type saw the biggest increase at +8.85% while equity portfolio suffered the loss of 1.64% over the same period.

Xav Feng, Head of Asia Pacific Research, Lipper at Refinitiv, commented, “The first quarter of 2020 saw the world hit by the COVID-19 pandemic, causing not only a global health crisis, but also a large-scale economic slowdown. In reaction, Central Banks pumped money into economies to brace for impact. The Federal Reserve slashed rates to near zero, launched a range of measures to increase liquidity in financial markets and promises unlimited, open-ended large-scale asset purchases. It also took additional action to provide up to $2.3 trillion in loans to support the US economy. The full impact of the pandemic is not over yet, and uncertainties will remain. Investors should continue to watch for on-going market volatility as we look ahead to the next half of what can on be described as a turbulent and unparalleled year.”

Performance of CPFIS-included unit trusts and ILPs during the 3, 12 and 36 month periods ending March, 2020:

  3 Months 1 Year 3 Years
(Cumulative)
3 Years
(Annualized)
Average of CPFIS-included unit trusts & ILPs -12.96 -7.30 1.23 0.41
CPFIS-included unit trusts -15.04 -9.34 -0.91 -0.30
CPFIS-included ILPs -11.61 -5.99 2.57 0.85

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 https://lipperalpha.refinitiv.com/.

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. For more information visit: www.refinitiv.com

Contacts

Silke Marsh
Director, Regional Communications, Asia Pacific, Refinitiv
Mobile:    +65 9793 4140
silke.marsh@refinitiv.com

Boni Liu
Business Communications Advisor, Refinitiv
Landline: +852 37611898
Boni.liu@refinitiv.com