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CPF Investment Scheme-included funds up 3.01% in Q4 last year

SINGAPORE — The overall performance of Central Provident Fund Investment Scheme (CPFIS)-included funds was positive in the fourth quarter, with returns of 3.01 per cent on average, Thomson Reuters Lipper announced on Wednesday (March 2) but warned this year will be challenging for investors.

SINGAPORE — The overall performance of Central Provident Fund Investment Scheme (CPFIS)-included funds was positive in the fourth quarter, with returns of 3.01 per cent on average, Thomson Reuters Lipper announced on Wednesday (March 2) but warned this year will be challenging for investors.

Giving a breakdown, the firm said CPFIS-included unit trusts increased by 3.27 per cent and CPFIS-included investment-linked insurance products (ILPs) rose 2.84 per cent in the fourth quarter of last year. For all CPFIS-included funds, equity, bond, mixed-asset and money market types all posted positive returns of 3.87 per cent, 0.30 per cent, 2.37 per cent and 0.17 per cent respectively. Comparatively, MSCI AC Asia ex-Japan index showed strong growth of 3.64 per cent, while Citigroup WGBI slid 1.45 per cent, Thomson Reuters Lipper said as it announced its findings on the performance of all unit trusts and ILPs that are included under the CPFIS as of 31 December 2015.

“2016 will be a challenging year for investors. Global financial markets are increasingly driven by headlines, with markets swinging dramatically on the back of central bank announcements. Low oil prices are expected in the coming months due to persistently high supply. Weak PMI data out of China is disquieting, as is the dislocation between markets and the U.S. Federal Reserve’s interest rate hike schedule. Investors should remain cautious in this uncertain environment, but market volatility may introduce new opportunities for the careful investor,” said Mr Xav Feng, Head of Asia Pacific Research for Thomson Reuters Lipper.

Lipper is appointed by the Investment Management Association of Singapore (IMAS) and Life Insurance Association of Singapore (LIAS) to monitor the performance of all unit trusts and investment-linked insurance products included under the CPFIS.

For the 12-month period, the overall performance of CPFIS-included funds remained flat, with a decline of 0.19 per cent on average. CPFIS-included unit trusts fell 0.08 per cent on the year and CPFIS-included ILPs fell 0.26 per cent on average. During this period, Citigroup WGBI TR rose 3.23 per cent, while key benchmark MSCI AC Asia ex Japan Index slid 2.47 per cent.

For the one-year period, on an average, bond offerings rose 1.74 per cent outperforming equity products that declined 0.71 per cent, while mixed-assets rose 0.04 per cent and money market types increased 0.58 per cent.

For the three-year period, on average basis, CPFIS-included funds reported a strong 20.07 per cent growth accounting for a gain of 23.18 per cent from CPFIS-included unit trusts and 18.19 per cent from CPFIS-included ILPs. During the same period, MSCI AC Asia ex-Japan Index gained 14.92 per cent and Citigroup WGBI TR rose 7.00 per cent. Equity type was the lead gainer with growth of 26.25 per cent while money market portfolio posted 1.20 per cent on average.

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